Honda Motor Co. Integrative Case AnalysisYou.docx

Honda Motor Co.
Integrative Case Analysis
Youtube Video Presentation
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Table of Contents
Executive SummaryError! Bookmark not defined.
IntroductionError! Bookmark not defined.
Overview of Organization4
Type of Organization4
Organizational Chart5
Human Relations ModelError! Bookmark not defined.
Maslow’s Hierarchy of Needs6
McGregor’s Y Theory7
Fayols Theory8
Planning8

Organizing8
Command8
Coordination8
Control8
Communication IssuesError! Bookmark not defined.
Time8
Teamwork9
Communication9
Intercultural RelationshipsError! Bookmark not defined.
Context Culture10
Barriers10
Overcoming Barriers11
Ethical IssuesError! Bookmark not defined.
Ethical Yardsticks11
Honda Philosophy12
SummaryError! Bookmark not defined.
Works CitedError! Bookmark not defined.
EXECUTIVE SUMMARY
The organization of choice for analysis is Honda Motor Co,
Ltd., which operates its headquarters in Minato, Tokyo, Japan
and multiple subsidiaries worldwide. Soichiro Honda and Takeo
Fujisawa founded Honda Motor Co. in 1948. Honda Motor Co.
is a Japanese public multinational corporation renowned for its
manufacturing of automobiles, motorcycles, and power
equipment.
The human relations model for Honda Motor Co. is based on a
combination of Abraham Maslow’s Hierarchy of Needs, Daniel
McGregor’s Y Theory, and Fayol’s Theory. The management
styles implemented were truly revolutionary, with department
clearly delineated and were responsible for its own production.
The Honda Philosophy coursing through the veins of the
company, a standard that the company bases itself on for the
conduct and decision-making of all personnel. Honda
encouraged motivation to employees, to give self-actualization
that would instill the drive to learn without fear of failure in

order to build towards success and reap the rewards of hard
work.
Honda Motor strives off its time, teamwork, and
communication. Time is essential concept to Honda Motors
success. Without it, without keeping to schedules Honda would
not be where it is today. Top management involves all
employees with the brainstorm and collaboration process for
specific projects that further the development of Honda
products. For Honda Motor, time and distances is not much of a
problem because of its many subdivisions; each subdivision is
responsible for its own entity meaning that each is also able to
further its innovation.
Honda Motor Co. revolves around a high- and low- context
culture through its sense of collective collaboration and success,
rather than individualists approach. However, the low-context
culture plays a part by allowing associates to have an
individualistic initiative approach. This allows employees to be
able to make their ideas a reality, creating new innovations and
new technology. Some barriers Honda could face would be non-
verbal communication between the different divisions across the
world. However, since the start, Soichiro has led it associates in
collaboration between Japanese and American associates by
learning the cultures of each other’s.
Ethics with Honda Motor Co. has not been a problem according
to sources. The ideals of Soichiro Honda have lived on through
his time operating Honda and continue to live on following his
passing. Since the beginning, Honda has had codes of conduct,
company culture, and ethics. All these can be also known as the
Honda Philosophy, which is the core of the virtue behind Honda
Motor Co. This philosophy is also accompanied by Soichiro’s
“Three Joys.”
Honda Motors has many subdivisions, but just as all the
employees come together to further innovation so does its
subdivisions. This has led Honda Motor to become one of the
leading automobile makers of the world. Honda continues this
innovation by allowing employees to have the culture of

freedom to produce.
INTRODUCTIONOverview of Organization
Honda, the synonymous name known worldwide with quality
and ingenuity. This name is world renowned, founded by
Soichiro Honda who can be accredited for the successful culture
that the company enjoys today. Soichiro, the mastermind behind
Honda Motor Co., was the son of a blacksmith who opened up a
shop in repairing bicycles. Soichiro was influenced by his father
and his love of machines and expanded beyond traditional
bicycles to automobiles and motorcycles. He developed a career
in repairing cars and motorcycles and eventually led into
manufacturing. After a few years of working on his career, he
left and started his own company. Soon after in 1948, the Honda
name became concrete and started to develop a name for itself
by partnering up with Takeo Fujisawa. Soichiro led the
engineering side whereas, Takeo led the business side, and
together built Honda into what it is today a brand known for its
continuous innovation backed by reliability, affordability, and
ethical business practices. Over the years, Honda has went
through many leaders since 1948: Soichiro Honda (1948-1973),
Kiyoshi Kawashima (1973-1983), Tadashi Kume (1983-1990),
Nobuhiko Kawamoto (1990-1998), Hiroyuki Yoshino (1998-
2003), Takeo Fukui (2003-2009), Takanobu Ito (2009-2015),
and finally upcoming leader Takahiro Hachigo (2015--).Type of
Organization
Honda Motors was the first manufacturer of Japanese origin to
produce cars in the U.S. Today, Honda Motor Co. Ltd., operates
its headquarters in Minato, Tokyo, Japan and multiple
subsidiaries worldwide. Honda Motor Co. is a Japanese public
multinational corporation renowned for it’s manufacturing of
automobiles, motorcycles, and power equipment. During its life,
Honda was a leader in the largest motorcycle manufacturer, and
has become a household brand to many consumers of
automobiles. Honda Motors is also the world’s largest
manufacturer of internal combustion engines, producing more
than 14 million engines each year. Organizational Chart

The Board of Directors at Honda Motor has 20 members, two of
whom are external appointees. It supervises the execution of
Honda’s business affairs and makes decisions on matters of
importance to the company, which include legal issues. In
looking at the organizational structure at Honda, it would seem
as if it were a combination of a hybrid between a horizontal and
a vertical organizational structure. This is because the Honda
Motor Group has many subsidiaries or divisions. These
divisions are run on a vertical level to the Honda Worldwide
Group then horizontally to the different divisions such as Honda
Manufacturing, Honda R&D, Honda Jet, and continents such as
Honda of Asia, Honda of America, and Honda of UK. This
chain of command runs on a vertical level to the point of
departments and run horizontal to the department heads. Then
returns to the vertical level to managers, supervisors,
associates, and interns. It would seem that Honda’s
organizational structure is one of the reasons of why Honda is
so successful today, because this structure opens more
opportunity or openness, also cries out to creativity and
innovation, and constant engineering. A sample of how the
organizational structure at Honda Motor Co. is as shown (The
Official Board),
HUMAN RELATIONS THEORYMaslow’s Hierarchy of Needs
Motivation can be defined as the desire to do things
(Psychology Today), and Maslow researched into why people
are motivated to achieve certain needs (Simply Psychology).
Soichiro invested in human initiative and attention to all his
workers from the start of Honda Motors. He also aimed to create
a better environment for his associates, attracting specialists
and motivating them to do their work in the most attainable
way. Honda stepped away from the traditional caste system of
hierarchy to promote the more experienced associates rather
promoted based on their performance. He understood that
encouraging his workers would lead them to personal
development, allowing them to come one step closer to self-
actualization that would ultimately lead him to success. He

inspired his employees the drive to learn without fear of failure,
which would build the road to success. McGregor’s Y Theory
According to Zaremba, Honda Motor Co. would fall under
McGregor’s Y Theory due to the characteristics that
presupposes it. Under Theory Y, Zaremba points out that under
the right conditions, work can be as natural as play. Honda of
Asia describes this perfectly in that Honda has the desire to
proceed always with ambition and youthfulness. Honda believes
that ambitions are the positive driving force that motivates us,
and youthfulness is a spirit of wholehearted commitment to
ideals (Asian Honda). Honda lives by a set of a beliefs that has
been passed down since the foundation; and one of these beliefs
is to take initiative which in essence is to not be bound by
preconceived ideas and to act on one’s own initiative and to
take responsibility for those actions (Honda). Theory Y also
mentions workers seek responsibility and feel rewarded through
their accomplishments. Honda encourages achievement and
helps employees to feel accomplished by allowing each
associate to gain a sense of joy and pride in the work they do
(Asian Honda). Finally Theory Y, states that workers are
creative and capable of organizational creativity (Zaremba Ch
2).
Fayol’s Theory
Planning. Honda Motors develops versatile plans, where they
can anticipate possible problems and the solutions to those
problems involving their staff in various planning such as
product and business planning. These various plans that have
been created help the associates in collaborating in extensive
brainstorming sessions where they first set objectives and
discuss ways to achieve those objectives.
Organizing. In order for any plan to be completed Honda
emphasizes organizing as a crucial function to the organization.
Honda places a team of specialists for various centers across the
world, which is assigned to specific roles in order to accomplish
goals.

Command. During the beginning of Honda Motor Co., Honda
and Fujisawa used forceful personal leadership in which they
later introduced team leadership by Takeo.
Coordination. The management structure at Honda Motor Co.
involves coordinating and overseeing the work activities of
others so that the organizational goals can be accomplished
efficiently and effectively.
Control. Honda uses a “soft” approach where workers are placed
in complete control over machines. Human control is vital
where human monitors what machines do. COMMUNICATION
ISSUESTime
Honda believes time is a limited resource; and to make the most
use of time is to take sound idea and approach tasks with
efficiency and productivity. Asian Honda mentions, three key
elements in keeping time: simplicity (focusing on the critical
issue by knowing what must be done), concentration (focus
resources and thinking to reach goals), and speed (rapid
implementation). Adding to this concept is another element,
which is to be ready on time. Everything has certain timing and
without it business activities will slow down. There are time
schedules to stay on track and it is how to make the most use of
time and the time of others (Asian Honda).Teamwork
The objective of managers is to build relationships in which
workers would see themselves working with the manager, rather
than working for the manager. Human resource management
assumes that if employees are happier at work the production
would increase. The owners treat others as equal and often work
in a workshop with employees allowing them to be able to
express their ideas and theories with higher ups. Honda does not
want to throw fresh ideas out and stick to what works, but to
challenge and take fresh ideas, allow flexibility, creativity, and
innovation to keep Honda on the leading edge (Asian
Honda).Communication
Honda advocates communication with its various stakeholders
for instance customers, business partners, shareholders and
investors, as well as local communities. The organization also

strives to cultivate fluid internal communication with the goal
of staying clear and responsible. Honda Group associates vow to
comply with communication guidelines; “I, as an associate of
Honda, will strive to practice appropriate and smooth
communication.” This vow has consists of three components:
timely and appropriate disclosure of information,
communicating with stakeholders with sincere mannerism, and
communicating at work with the motifs to create a peaceful
work environment (Honda 2015).INTERCULTURAL
RELATIONSHIPSContext Culture
Honda Motor Co. is unique company when it comes to
dimensions of culture. This is because of its origin and its early
history venture into the United States marketplace. According to
Guffy, Japan is a high-context culture due to its relational,
collectivist, intuitive, and contemplative characteristics.
However, since Soichiro’s venture to the US he wanted to instill
the cultural characteristics of North America (low-context
culture), a logical, individualistic, linear, and action-oriented
culture (Guffy Ch 1). In terms of the individualism perspective,
Honda Motors pursues to place high value towards the group, its
duties, and decisions. While at the same time, allows an
associate to take initiatives on his or her own accord even if it
results in failure. Soichiro Honda quoted “Success represents
the 1% of your work which results from the 99% that is called
failure” (Brainy Quote 2015). Barriers
Honda may face some barriers within their organization. These
barriers could be perceptual disparity which Zaremba describes
as selective perceptions may lead difficult or conflicting
opinions (Zaremba Ch 11). In terms for the Honda Group, the
Japanese cultured associates may feel that they are being
disrespected by the US, Latin American, or European culture
due to varied behaviors. Another barrier that Honda may face is
the effect of language dissimilarity. Zaremba mentions that
language shapes reality because what is spoken may impact
message reception and understanding (Zaremba Ch 11). A final
barrier could be nonverbal dissimilarity, which Zaremba points

out that gestures or other nonverbal barriers are judged
differently or can have different meanings in different cultures.
To combat these barriers organizations such as Honda who have
or who are seeking to multinational status should look into
altering their structural orientations. Overcoming Barriers
Honda has been able to overcome these barriers by following
prescriptions that is recommended in Zaremba. The Honda
Philosophy and codes of conduct has helped the Honda Groups
in living out the beliefs of its founders. A second way to
overcome barriers is for Honda associates to learn about the
cultures of coworkers. Honda has instilled the Honda
Philosophy of respecting the individual that pertains to Honda’s
various stakeholders which helps to open diversification within
the company. A third way Honda has overcome barriers is to
assume an egalitarian frame or to be open to cultural
differences. From the start of Soichiro’s dream of expansion, he
had used this approach for his associates to conduct business
with one another regardless if they are in America or in Japan.
This approach has guided Honda Motor Co. into the
organization it is today hybridizing the high- and low-context
cultural characteristics to strive to be the unique. ETHICAL
ISSUESEthical Yardsticks
The ethical paradigm at Honda Motor Co. has lived throughout
the corporation’s history, derived from Soichiro Honda, and
still continues to live on past his time at Honda. Since the
beginning of Honda Motor Co., Honda has instilled the Honda
Philosophy to be guidelines for his company. Under the Four
Ethical Yardsticks mentioned by Zaremba, Honda would be an
example of an organization that implements the Catergorical
Imperative (assumes there are universal absolutes for what is or
is not ethical), Utilitarianism (determines ethics by looking at
the “collective happiness”), and Veil of Ignorance (decisions
should be made with no consideration of political, financial, or
role influence) (Zaremba Ch 4). The beliefs, principles, and
management policies derived and passed down from Soichiro
has helped Honda Motors in leading an ethical life.Honda

Philosophy
This Honda Philosophy can be broken down into Fundamental
Beliefs (“Respect for the Individual” and “The Three Joys”), the
Company Principle, and Management Policies. According to
Honda Worldwide, the Fundamental Beliefs are further reduced
to two groups: Respect for the Individual and The Three Joys.
Respect for the Individual consists of initiative, equality and
trust. Initiative means not to be limited by preconceived ideas,
but to act on ones’ own initiative and judgment, while
understanding that one must take responsibility for the results
of those actions. Equality means to recognize and respect
individual differences in one another and treat each other fairly.
Trust must be mutual and must recognize each other as
individuals helping, sharing, and making and effort in
collaborating to fulfill responsibilities.
“The Three Joys” are the Joy of Buying, Selling, and Creating.
Buying can be achieved through providing products and services
exceeding the needs and expectations of consumers. Selling
occurs when those who are engaged in selling and servicing
Honda products develop relationships with a customer based on
mutual trust. Creating occurs when Honda associates and
suppliers involved in the design, development, engineering and
manufacturing of Honda products recognize a sense of joy in
customers and dealers. The company principle (mission
statement) of maintaining a global viewpoint, we are dedicated
to supplying products of the highest quality, yet at a reasonable
price for worldwide customer satisfaction.
The Management Policies are subjected to five key points that
all associates in the Honda Group will uphold. First is to
proceed always with ambition and youthfulness. Second, to
respect sound theory, develop fresh ideas, and make the most
effective use of time. Third is to enjoy work and encourage
open communications. Fourth is to strive constantly for
harmonious flow of work. Fifth is to be ever mindful of the
value of research and endeavor. This philosophy is shared
among all associates, and can also be the basis for all company

activities and to set standards for the conduct and decision-
making of all associates throughout the Honda Group.
SUMMARY
Since its founding days, Honda Motor Co. has been on a road to
success. This success is the ideals and dreams of founder
Soichiro Honda. However, he was not the brains to the business,
he was the engineer. He hired Takeo Fujisawa to become to
business mind behind Honda. Together, they created Honda
Motor Co. into the organization it is today. Living by the ideals
and dreams of Soichiro, Honda Motor Co. has become a place
for automotive enthusiasts to look to for innovation, dreams,
passion, ethics, and culture. Honda Motor Co. has paved the
way of how all automotive and other industries alike should
conduct business. By having a culture that can be passed down
the organizational structure from the CEO down to the intern.
Motivating associates to reward them for their hard work,
dedication, dreams, and ideas even if it results to failure.
Allowing associates to take this failure to strive for the 1% of
success that Soichiro strived for. A leadership team that stands
behind its associates when they have a fresh new idea.
Associates who love their work to create a new innovative
design or concept. Taking that idea and making it a reality for
those who inspired the idea. Living by the ethical beliefs of
Soichiro to create a company whom consumers can turn to in
times of need. Honda Motor Co. lives to benefit the world in
collective happiness rather than themselves. They do this by
choosing to conduct business ethically without a desire for
profits first, but rather by innovation, accomplishment and
pride. This is Honda Motor Co. founded by Soichiro Honda.

REFERENCES
Asian Honda
https://career.asianhonda.com/culture.aspx
Brainy Quote
http://www.brainyquote.com/quotes/quotes/s/soichiroho350000.
html
Guffy, Mary Ellen and Loewy, Dana (2010). Essentials of
Business Communication 9e, Mason, Ohio
Honda
http://world.honda.com/profile/philosophy/index.html
Organizational chart
http://www.theofficialboard.com/org-chart/honda-motor
Psychology Today
https://www.psychologytoday.com/basics/motivation
Simply Psychology
http://www.simplypsychology.org/maslow.html
Soichiro Biography
http://jcc-good-leadership.tripod.com/id4.html
Zaremba, Alan Jay (2010). Organizational Communication 3e,
Mason, Ohio, Thomson South-Western
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Running Head: Eden Beverages Business Plan
Eden Beverages
Executive Summary
Eden Beverages is a non-alcoholic beverage, limited liability
company (LLC) developed in the Maryland area. It’s a business
structure that combines the pass-through taxation of a
partnership or sole proprietorship with the limited liability of a
corporation. (McCormick, n.d) Eden Beverages desires to
develop and distribute an all-natural healthy beverage, bringing
forth the best from nature. Eden Beverages does not seek to be a
just another drink on the market, but a trendsetter. The drink
will contain no added sugars, no preservatives, no artificial
coloring, yet contain a blend of organic grown fruit and
vegetable. This product will focus on the benefit of healthy
consumption, with focus on providing the natural supplements
and vitamins in a beverage to those consumers who are health
conscious. Those consumers seeking a beverage of added
benefit to their health goals with no fears of harm to their body
due to chemicals. The goal is to have a customized recipe with
premium quality fruit and vegetable, to be distributed in a glass
bottle. The product will be unlike any other in its position in the
market as its goal is to be all natural as not to compete with
beverages containing sugars, or preservations. The growth
potential to expand in the future with varing bleeds of fruits and
vegetables as currently there is only a slight hint of these
ingredients.
The consumers who are health conscious seeking a healthy
tasting beverage will be targeted.
Eden Beverage seeks timely distribution to market, short
storage and shelf time putting the beverage in customers’ hands
with no threat of consumption, quality of the product, or the
environment. In seeking to improve the overall health of

society, it is the vision of Eden Beverages to distribute a drink
with quality ingredients to customers without sacrificing the
quality in the process.
A start up business founded in January of 2017 by the creator,
master mixer, and owner of the patent, Melinda Cates had this
vision over seven years ago when she started promotions at
County Fair. The business with start out under the leadership
of:
Management structure
· Owner- Melinda Cates, the NAB owner
· CEO
· Production Line Foreman- Ian Glass
· Paid Consultant -Mary Cates, JD
Developing a strong mission statement and company values are
the first steps in the impact of the business. The core values
start within management and is relayed down to all employees
during start up, orientation, and through continued professional
development. Eden Beverages will seek out, well-established
companies, such as Honest Tea to learn from and partner and
participate in community projects together. Eden Beverages
will position itself to form alliances with other companies who
share the same or similar values and are focused on achieving
the same type results for healthier consumers and
environmentally safe community.
Eden Beverages is concerned about the environment and with
the chemicals and other raw material use. The company intends
to be a green company Eden Beverages will implement the use
of non-harmful items even in the workplace, such as energy
saving light bulbs, solar powering of the facility. With
consumers becoming more health conscious and educated on
health concerns from food and beverages, they seek to a product
that will not add ill effects of high sugar content, artificial

sweeteners, and other harmful ingredient in products that they
digest. Eden Beverages believes consumers will seek out this
drink for the healthy option it provides as they seek to injest
healthy fruit and vegetables in a beverage. By marketing the
beverage as a “healthier” alternative, Eden Beverages will not
be in competition with the smoothies, sodas, teas, or select
flavored water drinks.
The beverage concept comes from consumers becoming more
health conscious. The company will balance quality and pricing
while maintaining customer satisfaction. Living a health
conscious lifestyle is a growing trend that many consumers take
very seriously. Consumers look for a great tasting beverage but
most importantly one of convenience, unlike smoothies but one
that serves a need, a purpose, or a goal in helping to sustain a
healthy lifestyle for consumers. Since more and more people
are seeking healthy options in food and beverage, this drink will
stand out over the market to get those consuming who don’t
want the added sugars which cause them to be sluggish or
unhealthy. The product will survive in the market as it will not
be a carbonated soft drink, it will not be just another smoothie,
yet bottled in glass, so as not to harm the environment. All
effects of the beverage are to provide a better quality of life.
Consumers are looking for a product that is healthy, period.
There is a strong potential for this product to succeed within
communities where potential health gurus demand a healthier
drink. The glass bottling will help with the shelf life and pose
no risk of contamination to the environment (Learn about
Glass). Glass has no harmful chemicals such as BPA, phthalate,
PVC, or polycarbonate, so no dangers of anything seeping into
the beverage. Glass is the only packaging material generally
regarded as safe by the U.S. Food & Drug Administration (Why
Glass). Glass is better for the environment: made from all-
natural, raw materials. Glass is 100% recyclable and is just as
portable as plastic. The ingredients, such and fruit and
vegetables, all being natural will pose no harm to environment
either when decomposing waste.

Eden Beverages will work to securing contracts with whole food
companies, health food stores and their affiliates like nutrition
bars inside gyms. The product will be marketed through trade
shows, direct mail, advertising, social media, through high level
of distribution in wholesale food stores, convenient stores and
other health food venues. The competition would be any
beverage company looking to provide consumers with an energy
drink, or smoothies, and teas. Eden Beverages will be
competing against companies who are looking to provide
consumers with a refreshing healthy drink that has less sugar
than current drinks on the market. This is a factor since most
consumers do not study the products they consume well enough.
Eden Beverages expects to be a successful company! In order to
be competitive, Eden Beverages needs to obtain financial
backing to help the business. Seeking Investors who have
knowledge in the industry is a major thrust for the company.
Eden Beverages will seek funding from loans, and financing to
start up the business. There is $20,000 in seed money that was
collected from friends and family to help in the vision of the
business. Minimal funding from Presales set aside from the
inception of the recipe from the owner will be contributed as
well. Expenses needs to focused on operations and production
(utility expenses, salaries, inventory, marketing and promotions.
The company projects rapid growth and will focus on
reinvestment of income for expansion rather than profit taking,
funding growth internally rather than through additional
investment beyond that currently sought. These funds will be
utilized to add a new training center, hire staff, and expand
marketing activities. So for expansion, distribution, and growth
into a booming market, Eden Beverages is seeking investors for
a combined investment of up to $1 million profit share by the
third year.
Company Description

Eden Beverages is synonymous to the Garden of Eden, which
represents earth in its purest form. It is depicted as pristine,
paradise-like and abundant in natural beauty. The Garden of
Eden represents a period of perfection when everything was
simple, and there was nothing to worry about. Everything was in
its purest form, thus no chemicals added to fruit or vegetables.
Eden beverages will be the forefront of creating a healthier
society, bringing a sense of peace like in the Garden of Eden.
The ingredients used will be all natural, bringing forth the best
from nature.
Eden Beverage mission statement is "To Improve the Overall
Health of Society, One Serving at a Time." The statement is
based on the concept that the consumers are looking for healthy
products that taste well. It informs the consumers that the
product is going to satisfy their health needs, with natural
ingredients. In a time where more consumers are becoming more
health-conscious, the beverage appeals to the masses. Mainly
containing organic fruit and vegetables, the product will contain
no additives or preservatives. Containing no unnecessary added
sugars, a serving would enhance the health and well-being of
consumers. The beverage will serve as a source of nutrition or
as a meal substitute for people on the go. The beverage is for
health conscious drinkers of all ages, who are looking for
healthy choices. The company seeks to provide a quality
beverage that refreshes the world by inspiring consumers on
their health and wellness journey, at an affordable price. The
drink will be packaged in glass containers so as to expand shelf
life, and because glass poses no harmful risks to consumers or
the environment (Learning about Glass, n.d). Eden Beverages
seeks to provide a healthier tasting beverage the way nature
intend it to be. We strive to build healthy relationships with the
customers, employees, suppliers and stakeholders.
Industry Analysis and Trends

The analysis shows strengths, weaknesses, opportunities and
threats. This SWOT analysis of Eden Beverages can provide a
competitive advantage.
Strengths
• Debt free start up inventory
• Established recipe for drink with previous sales
• Low overhead cost
• Experienced professional
• Increase demand for health beverages
• Customer loyalty
• Current inventory and supplies
Weaknesses
• Late entry into market
• Limited financial backing
• Cost for startup
• Established distribution channels
• Supply demand (seasonal)
Opportunities

• Expansion of Flavors
• Strategic Partnerships
• Product Improvement
• Rapid Expansion
• Loyal Customer Growth
• Healthy Option
Threats
• Outsourcing/Offshore Supplies
• Regulations
• Natural Disasters
• Product differentiation
• Competitors with like products
A major strength for Eden Beverages is that company provides
an all-natural product, at a low cost. Beginning with strengths,
one is that the company has start-up inventory and capital to
proceed. The product will operate in the expanding market
segment. The growth will be influenced by the changing
preferences of consumers (Jackson, 2013). An added strength
would be customer loyalty because they would continue to
purchase due to the offering being unique. Having sold the
product for seven years we are aware the product could be
successful.
Eden Beverages main weakness is mass production

requirements. If the product grows rapidly, due to consumer
desire, the company may not be able to adapt due to limited
capital. Even though the company has some seed money and
some equipment, investors are needed. Having limited funds
hinders the potential of the product. If the products are not
available for production, or supplies are not of standard quality
there could be issues for the product as well. Fruit and
vegetable are seasonal, it may hinder production. A weakness
could be the cost in manufacturing since the products are
organic and packaging is glass. The cost may be higher for
production and bottling.
Eden Beverages has opportunities such as joining in on an
already established industry to help penetrate a market that has
a major demand for the product supply. The company has a
chance to rapidly expand its operations and market share
gaining a more loyal following. Customers seeking healthy
lifestyle need and desire a drink as such. Eden Beverages has
the opportunity to take over the small, new market fast due to
the health aspect and packaging method. New acquisitions can
come from this as not a lot of healthy drinks are packaged in
glass bottles. This could also increase the number of health
conscious consumers while helping to ensure a healthier
environment.
Threats of Eden Beverages would be issues of regulations and
production. The rules and regulations that must be adhered to
and the production level to ensure that the beverage contains
safely blended ingredients so as not to have any harmful
ingredients such as the sugars and added preservations. If a
natural disaster occurs where the environment, soils, farm land,
supplies of fruit and vegetables are not able to be manufactured
this could cause a major problem for the industry. Also, there is
the potential threat of outsourcing and offshoring supplies.
Another threat could be the difficulty in winning over the
market, being that there are so many competitors with similar

products. Another threat is competition. Competitors are
providing a similar product to consumers, so it may be difficult
to lure new consumers. With so many consumers use to
grabbing a beverage full of sugar, added preservatives, artificial
sweeteners and other harmful ingredients, the lure may not be as
grand or as convenient as projected for all, yet only those
seeking the product.
The natural beverage industry is continuously developing drinks
as consumers need a variety of healthier choices, at a decent
price, and added convenience as they focus on their lifestyle.
Major trends for the industry are the growth of energy, water,
and sports drinks brands, reworking recipes, and bottling size.
In 2016, healthy beverages emphasized more on positive health
benefits, by cutting calories, sugar, or sodium. (Taylor, 2016)
Such drinks that promise energy and nutrition are being
manufactured with fewer ingredients and fewer less calories.
Beverages made without preservatives or additives are quite
attractive to the market. Adapting to the demand of the healthy
citizens by using organic ingredients helps manufacturers face
concerns of using healthy alternatives for its consumers.
According to Business Insider, the growth of energy, water, and
sports drinks brands is making the consumers more prone to
purchase due to the nutritional value. Companies are
reformulating their beverages with fewer calories and serving
smaller cans and bottles without changing the ingredients. The
American Beverage Association has pledged to cut calories by
20% by 2025 (Taylor, 2016). This global beverage market
continues to exceed the $1900 billion mark. The products
include juice, dairy drinks, nectar drinks, coffee, fruit powders,
energy drinks, beer, wine, and other spirits (Jackson, 2013). In
2015, the market reached a 65 billion liters mark. The
companies adapted to the growing demands of its consumers by
adding ingredients, including vitamins and minerals (Meyer,
2014). The fruit and vegetable ingredients in drinks are
creating an important market segment thus meeting the demands

of the consumers who have become health conscious.
Target Market
By definition, the target market is the group of people whose
needs match the product or service and subsequently, to whom
the products or services it to be marketed to (Target Market
Characteristics, 2016). The characteristics include demographic
factors such as income, geographic factors such as region, and
psychographic factors, which includes studying the lifestyles,
values, and overall attitudes of the consumers. Determining how
often customers need or will buy a product and how likely they
are to return to the same store or company affects their
shopping habits and the marketing tactics. These things effect
how well a product will fit, and determines the advertising,
placement, and packaging. (Abrams, 2014)
Eden Beverages will target identified groups in hopes of
creating a “family culture” for the product. This group would be
identified by a culture-keying in on active families, who seek a
healthy, all natural beverage. For the parent who is health
conscious, and wants to ensure that their children are receiving
healthy drinks without added sugars or added preservatives.
Those two or more person family households with gym
memberships and children participating in extracurricular
activities could be the main targets. Those who exercise have
lower stress levels and tend to do interesting things. People who
exercise are more likely to live in safe neighborhoods, and are
satisfied with their work. They are more likely to feel well
rested and have more energy, and are less likely to be diagnosed
with a chronic condition. Eden Beverages would be exactly
what they need. (Rudloff, 2011)
Essential to the success of Eden Beverages is the target market.
The 25-mile radius will encompass the area of Maryland,
Virginia, and Washington, DC. The locations include for MD;

Germantown, Capital Heights, Rockville, Gaithersburg,
Frederick, Annapolis, Landover, Ellicott City, Columbia,
Laurel, College Park, Beltsville, Bethesda, Silver Spring; and
for VA; Dulles, Chantilly, Alexandria, Falls Church, Reston,
Vienna. (Census.gov) The 25-mile radius has a population of
1,752,085. While seeking this area of consumers, the reach will
be to those individuals who health conscious, these individuals
are more prone to research and know health risk and factors.
All age groups would be targets yet research suggests those
persons between the ages of twenty-five and forty-five years are
more active in exercising and eating healthy. The population of
employed is high with a substantial income for at minimum
$15,000 per year and up. Its noticed that a family of two
working adults ranging between, 65 to 97,000 in this area is
more prone to be health conscious. (Census.gov) The number of
people without health insurance in the health category is
relatively low in the area at 10.62%, which explains that there
could be approximately 89.38% health conscious persons and at
least covered by medical insurance getting their physical
checkups. These are those who would be more prone to consume
a healthy drink.
Consumer
Business
Age
All
Industries
NAB
Income
15,000 +
Sector
Food and Drink
Gender
Male and Female

Years in Business
1
Health Insurance
10.62%
Number of Employees
4-10
Marital Status
Married or Single
Location
DMV
Family Size
No Specific
Number of Branches
1
Ethic Groups
All
Square Footage
16,400
Education Level
All
Company Ownership
LLC
All ethnicities are likely to partake in the beverage even though
racial/ethnic disparities in exercise and dietary behaviors appear
more noticeable with middle-aged, acculturated minorities.
Results highlight the need to promote positive exercise and
dietary behaviors during critical preventive ages, when
racial/ethnic disparities are large and the potential to prevent
chronic disease is great. (August, 2011) Ideally, the consumers
are those family members (parents and children) seeking a
healthy, no added sugar drink, and who have busy lives needing
something quick to aid in their well-being. Perhaps they set out

to the gym before, or after work, between hustling the children
off to after school events or recreational events on evening and
weekends. The drink being all natural would be useful with an
evening snack or at meal time as well. These individuals live in
family friendly communities, with convenient shops, and
healthy food stores, in which they frequent. Wellness centers,
with gymnastics, watersports, spas, and daycares are places of
target since many families use these facilities for evening
activity.
When marketing to whole foods, it’s important to understand
that the sales for organic drinks topped about $43.3 billion yet
now there's a lot of competition. The driving force behind this
growth, is more millennials are seeking the beverages:
consumers aged 21 to 35 are the largest buyers of organics, and
they're the most likely to consider themselves "knowledgeable"
about their food, now more mainstream grocery chains adapting
and carrying the brand. (Dewey, 2015) Eden Beverage would
not only target Whole Foods but Mainstream distributors alike.
Competition
There was water, which should provide everything the body
needs to replenish the fluids it loses. Then milk, beer, wine,
coffee, and tea came into play, as drinks for taste and pleasure.
Then soft drinks, sports and energy drinks, to help the body.
Next healthy drinks. With all these choices it is hard to
determine what might be the “best” for consumption. (Healthy
Beverage Guidelines, 2015) Eden Beverages is competing
against companies who are looking to provide consumers with a
healthy drink that has less sugar than current drinks on the
market. Eden Beverages will not market on taste but on health
the drink being refreshing, from the natural sugars found in the
fruits used.
Using a model similar to other start up companies, like Honest

Tea and Naked Juice, promoting on the principles of no added
sugar, all natural, with a hint of fruit and vegetables will serve
as a healthier option for many consumers, is the belief for Eden
Beverages (Cameron, 2016). Eden Beverages would be set apart
from competitors by using a strategic approach that was a
weakness of Naked Juice, which is that they are uncertain of
their consumers, and unclear about what the ingredients and
priced the drink too high. Eden Beverage will know its
consumers by the offering, the need and desire. Above, I listed
the type of people who would seek Eden Beverages, to
marketing in the areas of need would be a must for Eden
Beverages. Placing the drink in community stores, at gyms,
sporting events would gain the most popularity. The branding
will grab the attention of those fast paced lifestylers. Another
factor that affects Naked Juice is they had a major lawsuit
against Pepsi Co for the misuse of the term all nature, which
ended in a $9 million settlement that left bad exposure for the
brand (Website Article). Eden Beverages will be true and honest
about its product and labelling, which will explain the
ingredient percentages true to date. The beverage will not be
misleading for the health consumer. The products will be
locally raised and maintained, bottled in glass so no more
additives. With locally grown products, fruit and vegetables
would make it more diverse for distribution. The pricing will
remain low making the demand and desire higher, the niche of
coupons helps consumers reach for it more. It’s noted that Wal-
Mart even carries a brand and Costco sells organic produces
which are considerably cheaper than natural food stores,
farmer's markets or Whole Foods. So lowering price would be a
primary strategy for dealing with competitors. (Dewey, 2015)
Strategic Positioning and Risk Assessment
Since Eden Beverages will concentrate on the production of
healthy products, the brand intends to introduce the product at a
comparable rate to other brands in the market, yet distinguish
itself by its look and name because of its ingredients. Advising
through its image that the product is all natural will help it

stand out from other players in the market. The product will be
positioned in store fronts, as a drink that will grab consumer
attention. Those customers who are college age, young adults,
who exercise and perhaps are in fitness groups. This group
consists of individuals who remain on the go, working class,
seeking a quick nutritional drink with added value for their
goals.
Eden Beverages will utilize print as the first leg of advertising.
For starters, pamphlets, articles, and flyers print media to
introduce the product to the market. The information will
explain the decrease in added sugar and consumption of caffeine
will serve buyers well. The information will be posted at
nutritionist office, health food stores, at local health centers
like gyms and spas to help the product gain the familiarity.
The company will for starters seek partners for visibility by
presenting banners, ads, and advertisements on other health
sites, like vitamins from GNC, health food stores, and gym
membership pages. Online advertising will be done through
blog discussions, YouTube promotion video, Instagram pictures,
Facebook page, and the company website.
In order to target health conscious consumers, the product must
speak the language of the consumer – It’s healthy. Explaining in
simplest form the contents and benefits will help the product
and as well as keeping the cost low. I believe the Lean Start Up
method would be the best launch approach for the product
(Abrams, 2014). The product, while similarities are already in
the market will still grab customers’ interest due to demand for
various alternatives. The core component for lean start-up is
identifying the concern, build, measure and learn from it. The
goal is to provide value. The customers would test and measure
the product comparable with other offerings based on taste and
ingredients.

Non-Alcohol Beverages hold contributing factors to many
health issues such as cognitive health issues for all ages,
obesity, diabetes, and artificial ingredients. Eden Beverages
intends to provide a drink that contributes less to these health
issues. After all it contains no added sugars, and is in its purest
form with fruit and vegetables. The drink could be consumed by
anyone. The beverage will not be carbonated, not contain,
caffeine, no artificial coloring either. The hope is the drink
works to improve health issues across the board for our
consumers.
Understanding that knowledge is instrumental in maintaining
good health, we plan to help consumers understand that having
all natural products is more beneficial than any additives they
may digest. The natural flavors from the blend of fruits and
vegetables will give the drink flavor. Eden Beverages will
present information in pamphlets, blogs, and websites about the
effects of drinking sugary, flavored, and carbonated drinks
related to health issues. Consumers would note that they would
not be as sluggish after consumption. The product could be
consumed by children and adults alike. The nutrients could be
compared to those of competitors, like smoothies, flavored
waters, sodas, and tea. The hopes would be that Eden
Beverages is presenting a recommendation for reducing
overconsumption of sweet, artificial flavored and carbonated
drinks.
Eden Beverages has the hope that consumers, who exercise
regularly and are living healthier lifestyles, will take heed to
the nutritional value of the drink. The company will seek
nutritionist and medical professionals for insight to share about
the benefit of the drink. The ultimate goal is to earn the trust
and belief of consumers that the beverage is indeed a source for
healthier living. The trust gained serves as customer service and
feedback concerning the product and gets more and more people
looking at the drink.

Regulation is important in any business and could be the biggest
risk. There are rules and guidelines that must be adhered to,
which are set forth by the health and safety commission. The
U.S. FDA places regulations on food, beverages, and dietary
supplements intended for consumption by humans and animals,
per the government established website. Safe guards need to be
placed so litigations over use of unsanitary fruit and vegetables
are not an issue for the company. Handling precautions would
need to be practiced. Farm hands, employees, safety
inspections, and monitoring are important for production. Using
reputable distributors is also important so as not to be using too
many different places to get the products, resulting in chances
of getting pesticides mixed with good quality produce. Study of
USDA and FDA regulations would be needed to ensure that all
guidelines are met (www.fda.gov).
Eden Beverages must follow the rules so as not to face claims
about ingredient tampering or being harmful to consumer
health. One way could be through the labeling and packaging.
For example, through packaging the beverage serving in a glass
bottle, the continents and ingredients will be a great benefit
compared to consumption of the beverages from plastic or
cardboard drinking containers. Glass bottling ensuring that the
ingredients within the glass are kept fresh, doesn’t lessen its
ingredient strength or lose its flavor. Since the product is all
natural, there is no chance of harmful chemicals from the plastic
bottles to interact with the ingredients of the drink. Glass
packaging is trusted for health, taste and the environment. It is
also the only widely-used food packaging granted the FDA
status of “GRAS” or generally recognized as safe. (Learn About
Glass, n.d.) When consumers choose foods or beverages that are
packaged in glass, they avoid potential risks while enjoying a
number of benefits. In the event of contamination or unsafe
storing/packaging, the company could face scrutiny and could
face penalties.

Another risk would be competition. The competition will remain
high as needs change and growth, and many will likely produce
products that are similar. Knowing what is appealing the
consumer, what is a needed from the beverage as consumers
needs and wants to continue to change over the years. Due to
this, it will be important for the company to conduct more
research to identify all key preferences of consumers and as
such create products, which are more appealing to the
consumers (Jackson, 2013). Eden Beverages plan to develop a
beverage which offers more benefits to the consumers compared
to the existing companies.
Marketing Plan & Sales Strategy
The marketing vehicles for branding will be through methods:
Printing circulars and brochures for mass mailers and for
distribution about the all-natural product. Other advertising can
be in print form at nutritionist office, health food stores,
circulars, and taste test stations inside large grocery chains or
warehouse markets such as Sams Club, Costco, or BJs.
Also having the drink in massage parlors, when a customer is
relaxing waiting to be pampered they can help themselves to a
Eden Beverage instead of a glass of water with lemon. When
clients taste, they can complete survey/pamphlets. Making
arrangements with juice bars inside gyms will be a positioning
tactic, for taste testing. Also advertising will be through local
sponsorships with community events such as Amateur Athletic
sports for school age kids, where the product can be distributed.
Pamphlets and fliers can be given out for more information on
where to purchase. This will promote the general image of the
business as well as the visibility of Eden beverages. Advertising
could include banner ads, where potential consumers can click
and data be collected. Sponsorship opportunities can help the
name and image be printed on t-shirts as sponsors of events like
5k races, or triathlons.

Eden Beverages marketing will be done through free advertising
using Social Media sites to gain attention, through customer
opinion, pictures, description and information. Social media use
for advertisement is a current trend for many companies. Such
sites may be Google, YouTube, Facebook, Instagram and event
Blogs.
There are approximately 11 local radio stations in the
Washington DC metro which includes, Virginia and Maryland.
Per commercial cost, a fee of $396.00 for a 30 second ad would
be needed. There would be a significant increase, which could
be more beneficial for promotion during peaks times of the day
(Radio Advertising Cost website.) Imagine hearing the ad on the
radio of Eden Beverages, changes lives one serving at a time,
advising that Eden beverages will be the forefront of creating a
healthier society, bringing a sense of peace like in the Garden
of Eden, early morning when families are headed to take
children to school and work, and in the afternoon when they are
picking up the student and heading to gym or after school
events. Advising as no sugar added and it contains fruits and
vegetables, as a consumer drives home from a long day of work,
contemplating what will be for dinner as they hurry the children
out of the vehicle to sports events and make a mad dash to the
local whole food store. Eden Beverages would eventually
expand to all the Washington radio stations.
Eden Beverages may even purchase a few vending machines to
maintain. Proper licensure to operate the machine will be
required and leasing of a vehicle to transport the supply during
start up at a few locations. Such locales as convenience stores,
pharmacy stores like Walgreen and CVS to name a few would
be great places. While profit margins are lower,
manufacturers/vendors can benefit from improved cash flow.
This strategy helps with global expansion operations (Abrams,
2010).

By supplying a beverage that meets the consumer needs
ensuring that the consumer has a convenient and refreshing
product. Offering a healthy alternative to create a better
lifestyle one drinker at a time. The product will be of high-
quality to meet the client’s expectations for healthy
consumption, with no added sugars containing fruit and
vegetables. Eden Beverages promises to offer an affordable
product to all customers. Beverages will price its product
somewhere between the price point of water and higher sodas.
The range I notice if $0.99 to 2.99 for a drink. The price of
Eden Beverage will be $2.00. When coupons come into play the
amount will be less at nearly $1.50. The price point will not
affect the day to day cost of living for consumers. The all
natural beverage will be available in the stores at registers
counters for added notice and convenience. Customers will be
able to purchase our product any time of the day or night. Eden
Beverages will offer unique brands for the customers. The
company will hire professional personnel with excellent
customer service. The purchase and consumption leaves the
consumer with a feeling of satisfaction from choosing a healthy
option. Whether it's driving down the road, sitting watching
their children after work, sharing a drink with the child after
having participating in a sporting event, or just after a rigorous
workout at the gym. The company will produce high-quality
drinks that will in turn boost productivity due to the consumer
need. Consumers will share the word about the product, and
share with their children and other family and friends for added
promotion. The company will also expand in more territories to
expand world wide and eventually internationally.
New products are developed daily and saturate the market. Eden
Beverages will not be afraid and hide behind any others
product, as did Honest Tea. This product is needed and staying
connected to the consumers gaining feedback, seeking what they
need and want will allow the product to remain relevant. Today
with so many health conscious seekers and the stigma that it’s
expensive to be healthy, will be an added bonus to have a drink

that is at relative cost to consumers so that they aren’t afraid to
grab for convenience.
By selling the product to major distributors; for specialty shops
like all natural supermarkets; food service distributors will get
the product into local gym locations, and convenient stores;
wholesalers and warehouses who help with chain supermarkets
distribution (Beverage Distributors, n.d.). The focus is more on
the product ingredients and availability and let the distribution
company focus on fulfillment which potentially could save time
and money in the long run. They will take a change on the Eden
Beverage because of the need for the product, knowing that
more and more consumers are becoming ,ore health conscious
and its not a product that is already out.
Operations Plan
The aspects of the startup business is that Eden Beverages has
current assets already. There will be added maintenance to the
items, which include two Accutek AccuSnap Capper Bottling
Machines, two NAB Mixer Beverage Filling Machines, four
vehicles, three computers, and a facility, which was left to
Melinda Cates, owner, by her uncle, Bill. The facility is large
enough to accommodate the operations for current production
and has the capacity for expansion. This would allow Eden
Beverages room for advancement for future sales goals. In
owning the facility, there is greater opportunity in securing
financing using this asset/real estate as collateral. Otherwise,
banks and credit unions might be skeptical to lend since there is
no stable sales/income history. Banks will require these assets
and real estate to be listed. Eden Beverages would be able to
borrow and continue production, while waiting on growth in
accounts receivable.
Eden Beverages will be a trendsetter, focusing on
customer feedback to improve the product. The goal is to use

moderate to premium quality fruit, a simple customized recipe,
timely distribution to market, and a shorten storage to shelf
time to place the beverage in consumers hands as quickly as
possible, without sacrificing the quality and nutritional value.
Eden Beverages feels that cost for operations can be one of the
biggest factors for loss as well as one of the biggest
opportunities for savings. Within a production environment,
wastage needs to be controlled. Eden Beverages will need to
find strategies to think quickly using the resources and people
on hand and take measures to reduce cost. This could be done in
deadline deliverables. Valuable time will need to be placed on
training the staff so they are relevant and productive in times of
increased and decreased in demand for products. This could
affect production, and resale tremendously, as we want to be
able to be productive at all times. Eden Beverages would need
to study and evaluate processes of the labor force. Knowing
when to save on labor cost, remaining at a high level of quality
control and safety would need to be factors taken into
consideration.
The distribution channel for Eden Beverages will be tested as
well as a startup company, Having two vehicles, and a facility
with minimal equipment to begin production will be a great
benefit. The water quality for sanitation and cleaning needs to
be adequate in the building. The machinery will be properly
maintained, cleaned, and tested by the staff with maintenance
checks until the company is able to grow and send production
out to a manufacturing company. A food service would be the
better option for getting the product into stores on the large
scale in the future. (Beverage Distributors, n.d.). Eden
Beverages needs to focus more on the product ingredients and
availability and let the distribution company focus on
fulfillment which potentially could save time and money in the
long run.

Preservation of the product will be important. Glass bottling
ensures that the ingredients within the glass is kept fresh,
doesn’t lessen its ingredient strength, or lose its flavor. Since
the product is all natural, there is no chance of harmful
chemicals. When consumers choose foods or beverages that are
packaged in glass, they avoid potential risks while enjoying a
number of benefits. Being made mainly with water, the fruits
and vegetables must be well-blended and meet shelf life
requirements. The U.S. Food and Drug Administration (FDA)
states shelf life of water is indefinite! (How Long Do Drink
Last.) With a hint of fruit and vegetable blends, the beverages
can last from weeks to months depending on a variety of factors
such as the type of juice, the best by date, how the juice was
stored, and the packaging. Most juices are high in vitamin C,
and can substitute as a serving of fruit. Juices which are all fruit
will spoil sooner than juices with added sugar and preservatives
as the natural sugars in the fruit will begin to ferment over time
(How Long Do Drinks Last). This is why Eden Beverage will
contain no added sugars.
Having quality control procedures in place will help Eden
Beverages when it comes to issues of facing product recalls or
place consumers at any type of risk from poorly made products
(How to Ensure Production Quality Control). Eden Beverages
strives to use local farm grown products as well as have
maintenance in place for equipment. Operators of the
equipment will be trained to monitor the manufacturing process.
The ingredients and raw material needed will be acquired and
inspected, cleaned and stored. Fruit and vegetables will be
fresh, may require refrigeration for storage since it will be
provided in bulk until used.
Eden Beverages assembling of the product will consist of shift
work hours to continually have production to meet company
goal of creating $1M in revenue. The estimated cost for 10
employees falls between the range of $50,000 and $250,000.

Eden Beverages will need to share the cost of health insurance
with full time staff. Eden Beverages forecast salaries an initial
problem. Companies incur debt initially from hiring, training,
and getting production started. It’s indicated that CEO, has no
salary for first six months. There is a $20,000 in seed money
that was collected from friends and family to help in the vison
of the business. Once up and running, there is an expected
annual salary of $50,000. It is also noted that Melina Cates, the
owner will forego a salary for the first year, and will utilize her
savings to maintain her standard of living. For starters, CEO
and President will work together to present the company and
handle the marketing and operations until growth allows more
people. Ian Glass, who serves as a volunteer, and brings
valuable experience to the team, will work in startup until Eden
Beverages can hire an experienced production line foreman to
guide and support the staff. Stephen Job will be paid $15 an
hour for part time computer expertise. Negotiation of $20 an
hour to the consultant Mary Cates for the knowledge and
information she brings to the company as a startup company.
Future expansion shows that an administrative person will be in
place later.
Technology Plan
Eden Beverages technology plan will address the day to day
needs while positioning itself for future expansion to over $1M
in revenue. The plan will fit small organization structure and be
flexible enough to grow and be user-friendly for all staff. The
consultant with assist with the development of the Technology
Plan. Stephen Job will help to meet the specific needs of the
company like database management for shipping and receiving,
tracking, mailing list, and accounting to name a few (Abrams,
2000). In addition to the three computers owned, we will use a
Microsoft Small Business Server and Office 365. Staff would be
familiar with basic Microsoft products such as Word, Excel,
Outlook, PowerPoint, SharePoint, and Access. These Microsoft

programs will be the core of our business. The company website
will be through WordPress, an all-inclusive website design and
development option for businesses of all sizes (WordPress
Website Design, 2017). As a computer expert, Stephen Job, the
consultant will help maintain these services until more staff can
be hired.
The remaining start up hardware needs will be leased. A couple
ipads may be needed for day to day operation for the executive
members. A label printer that will be used to print the bottle
labels. Leasing of equipment will allow the company the
privilege of keeping up with the latest and up to date
technology. The leasing company will supply updated
equipment and repair and replace the hardware. This method is
good for business because not much will be needed for startup,
and updated technology is easier and quicker and less expensive
up-front. The company will not have to worry about one large
lump sum to purchase, making it easier to budget for the
equipment over a longer period of time, and have a tax break
(Pros and Cons to Leasing, 2017)
The telecommunication needs of Eden Beverages will consist of
bundle packet deal for land line, cloud-based phone system,
high-speed commercial band internet, and a fax/copy machine.
The cloud-based phone system will require no maintenance or
hardware, other than IP phones. The service provider houses,
maintains, and upgrades all of the technology. Technology is
moving to the cloud, making access available to users
anywhere. The cloud offers businesses the option of easily
adding lines and accessing new features as the needs grows. The
service is typically a monthly fee per user basis (Brooks, 2017).
Management & Organization Plan
Melinda Cates, the OWNER of the NAB. She holds the title to
the facility and the equipment that will be used by the company.
She is the creator and master mind of the mix, and worked to

secure a patent for the drink.
CEO of Eden Beverages has been entrusted the position by the
owner, due to being a recent graduate with a Master of Business
Administration with a concentration in Health Services
Administration. Her passion for creating healthy beverages
while implementing health conscious decisions in her personal
life is the key to the success of this business.
Mary Cates, consultant is a lawyer, and was a senior executive
with the Federal Trade Commission. Stephen Job, will serve
part time as the computer expert. Ian Glass, Production Line
Foreman, retired plant production line foreman from Pepsi, and
has many years of experience and agrees to help with planning.
The reset of the staff will consist of 10 assembly line
employees. Starting with 4 and then increasing gradually, after
six months, and as the demand for production increases for
expansion. The experience requirement will be at least one year
experience in production, with the ability to work in the US
without sponsorship.
The process of defining the goals of a company and creating a
plan of action for meeting the goals is placed in the hands of
management. Management has to take into account short and
long term strategies to operate and maneuver the overall
objective of the company (The Basic Steps in Management).
The Board of Directors will be the sounding board for the
company based of volunteers and financial contributors. They
are in place to represent and serve the interests of shareholders
by overseeing the strategy, policies and performance of the
business.
The Board consists of a small group.
· Chair- Melina Cates
· An outside investor
· CEO
· The attorney secured by the company
· Nutritionist or Physician

· Community Activist
President will be involved in the day to day operations of
marketing. She placed the chief decision making in the hands of
the CEO, who will lead the customer service operations and
human resources until the company can put in place more staff.
The line manager will be directly responsible for supervising
the line staff. The line staff will work shifts to ensure
production. Our paid consultant will report directly to the CEO.
Ethics & Social Responsibility Plan
Eden Beverages is committed to corporate citizenship. It is the
goal of Eden Beverages to be truthful, having a shared interest
in and impacts on the community we operate and profit in. Eden
Beverages will seek to hire educated and enthusiastic people
who value the initiative of the company. Those who truly
believe in the value, make the day to day operations easier to
maintain. It will be the intent of Eden Beverages to support
such programs that will align with the focus, of creating a
healthy lifestyle, one serving at a time. Community involvement
will be on volunteer basis and contain contribution from the
managers and employees to serve and fund events in the future,
by donating their time and providing to national and local
charities, like food shelters and other initiatives. Engaging
employees in giving back affords them a chance to share their
voice and contribute to the vision of the company (Caramela,
2016). The employees will be treated with honesty and respect
and in accordance to laws for employment in the state of
Maryland. Eden Beverages will comply to the standard health,
safety, and environmental laws for the beverage industry. Eden
Beverage seeks to be healthy for the consumers and the
environment alike for healthy individuals and providing no hard
to the environment.
The goals of standards of living and quality of life are
important for the communities and the profitability of the

company and its stakeholders. The company will build trust by
being upfront and honest about the production and operation, as
full disclosure to the contents used in growing and filtering the
ingredients. The company will strive to leave no false
statements or misleading advertisement which will help with the
open and honest aspect towards building trust. Labeling and
publications will contain all the information. Healthy
consumption is the main social cause. We believe that providing
a product that is refreshing, all natural, and not harmful in
consumption could lessen the impact of obesity and diabetes,
when consumers are ingesting sugars and preservatives.
Personal health benefits are important. They do need to
necessarily have a flavor filled drink, rather one that is more
pertinent to their healthy living goals and not adding anything
that that ultimately caused harm. A beverage with vital nutrients
and antioxidants is important when considering the nutritional
value of a beverage (Healthy Benefits of Beverages).
REFERENCES
Abrams, Rhonda. (2000, September 11). Tackling Technology in
Your Business Plan. Retrieved February 24, 2017, from
http://www.inc.com/articles/2000/09/20256.html
Abrams, Rhonda. (June, 2014). Successful Business Plan:
Secrets & Strategies (Successful Business Plan Secrets and
Strategies) Planning Shop. 6th Edition. Palo Alto, CA
August, K. J., & Sorkin, D. H. (2011, March). Racial/Ethnic
Disparities in Exercise and Dietary Behaviors of Middle-Aged
and Older Adults. Retrieved February 11, 2017, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3043172/
Beverage Distributors (n.d) Retrieved January 21, 2017, from
http://www.powerbrands.us/beverage-distributors/
Brooks, Chad, (2017, January 10) Business News Daily Senior
Writer. Choosing a Business Phone System: A Buyer's Guide.

Retrieved February 23, 2017, from
http://www.businessnewsdaily.com/7149-business-phone-
system-guide.html
Bureau, U. C. (n.d.). Search Results. Retrieved February 09,
2017, from https://www.census.gov/search-
results.html?q=montgomery%2Bcounty%2C%2Bmaryland&sear
ch.x=0&search.y=0&search=submit&page=1&stateGeo=none&s
earchtype=web&cssp=SERP
Caramela, S. (2016, June 27). What is Corporate Social
Responsibility? Retrieved February 24, 2017, from
http://www.businessnewsdaily.com/4679-corporate-social-
responsibility.html
Cameron, M. (2016, May 23). 7 No Calorie, All-Natural Drinks
| Reader's Digest. Retrieved February 09, 2017, from
http://www.rd.com/health/healthy-eating/7-no-calorie-all-
natural-drinks/
Dewey, C. (2017, February 10). Analysis: Why Whole Foods is
now struggling. Chicago Tribune. Retrieved February 10, 2017,
from http://www.chicagotribune.com/business/ct-analysis-
whole-foods-struggles-20170210-story.html
Don't Fall Victim To These Tricky Juice Labels. (2013,
November 10). Retrieved February 12, 2017, from
http://foodbabe.com/2013/11/10/juice-labels/
Gerber, S. (June, 2011). 19 Ways to Get Your Product in Front
of Retailers. Retrieved January 20, 2017 from
https://www.americanexpress.com/us/small-
business/openforum/articles/19-ways-to-get-your-product-in-
front-of-retailes/
Global Beverage Packaging Market to be Worth Nearly US$ 200

Billion in 2017. (n.d.). Retrieved March 02, 2017, from
http://www.futuremarketinsights.com/press-release/global-
beverage-packaging-market
Health Benefits of Beverages: Milk, Red Wine, Hot Cocoa and
Tea. (n.d.). Retrieved February 20, 2017, from
http://www.healthyeating.org/Healthy-Eating/All-Star-
Foods/Beverages.aspx
Healthy Beverage Guidelines. (2015, May 26). Retrieved
February 09, 2017, from
https://www.hsph.harvard.edu/nutritionsource/healthy-drinks-
full-story/
https://www.honesttea.com/wp-
content/themes/1070046_honestteawp/assets/pdf/Honest_Tea_B
usiness_Plan_98.pdf
How Long Do Drinks Last? Shelf Life, Storage, Expiration.
(n.d.). Retrieved February 25, 2017, from
http://www.eatbydate.com/drinks/
How to ensure production quality control. (2017, January 10).
Retrieved February 23, 2017, from http://quality-
line.org/ensure-production-quality-control/
Jackson, K. (2013). Business risks in the beverage industry.
Oxford: Oxford University Press.
Learn About Glass. (n.d) Retrieved January 18, 2017, from
http://www.gpi.org/learn-about-glass/benefits-glass-packaging.
Market Research Report. Global Organic Food & Beverages
Market Analysis and Segment Forecasts to 2020-Organic Food
& Beverages Industry, Outlook, Size, Application, Product,
Share, Growth Prospects, Key Opportunities, Dynamics, Trends,
Analysis, Organic Food & Beverage Report-Grand View
Research Inc. (2015, April). Retrieved January 18, 2017, from

http://www.granviewresearch.com/industry-analysis/organic-
foods-beverages-market.
McCormick, A. (n.d). Sole Proprietorship Vs. LLC Vs.
Corporation. Retrieved March 09, 2017, from
https://www.thebalance.com/sole-proprietorship-vs-llc-vs-
corporation-1200858
Pros and Cons of Leasing vs. Buying Equipment. (2017, January
23). Retrieved February 23, 2017, from
http://quickbooks.intuit.com/r/office-and-equipment/pros-cons-
leasing-vs-buying-equipment/
Radio Advertising Costs. (n.d.). Retrieved February 09, 2017,
from http://www.gaebler.com/Cost-of-Radio-Advertising-In-
Rockville---MD
Rudloff, J. (2011.). Exercise: Who does it Best? Retrieved
February 09, 2017, from
http://www.healthways.com/blog/2011/06/exercise-who-does-it
Target Market Characteristics - Boundless Marketing Open
Textbook. (08 Aug. 2016). Retrieved February 09, 2017, from
https://www.boundless.com/marketing/textbooks/boundless-
marketing-textbook/integrated-marketing-communications-
12/selecting-the-promotion-mix-for-a-particular-product-
84/target-market-characteristics-421-4126/
Taylor, Kate. (January, 2016.) The 4 biggest ways American
beverage consumption will change in 2016. Business Insider.
Retrieved January 18, 2017, from
http://www.businessinsider.com/4-big-beverage-industry-trends-
in-2016-2015-12
The Basic Steps in the Management Planning Process. (n.d.).
Retrieved February 24, 2017, from
http://smallbusiness.chron.com/basic-steps-management-
planning-process-17646.html.

U.S. Food and Drug Administration. (n.d). Retrieved January
21, 2017,
http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocume
ntsRegulatoryInformation/
WordPress Website Design | WordPress Website Designer.
(2017, January 26). Retrieved February 24, 2017, from
https://www.web-savvy-marketing.com/website-design/
Why Glass? (n.d.). Retrieved February 23, 2017, from
http://myownbottle.com/why-glass/
Planning isn’t just what you do to go into business; it’s what
you have to do to stay in business.
If You Have an Existing Business
While the entire business planning process described in this
book is aimed at both new and existing businesses, companies
already in operation have the ability, and need, to examine key
marketing, operating, and financial activities more closely. This
in-depth analysis particularly benefits those companies
undertaking the business planning process for internal planning
purposes rather than as a method of securing outside funding.
Ongoing internal planning is a must for any business; it enables
you to stay competitive. A thorough planning process forces you
to look closely at the dynamics of the current market situation
rather than rely on old assumptions. Regular, ongoing planning
enables a company to more quickly adapt to new market forces
and incorporate new technological advances.
“Business plans are critical. You can see the original business
plan for Honest Tea on our website
[www.honesttea.com/mission/about/businessplan].”
Seth Goldman
Cofounder, Honest Tea
Internal planning provides you with the opportunity to examine
ways to keep costs down and increase your profitability. In the
constant press of day-to-day business, taking time out to think

about what you do and in which direction your company is
headed gives you more control over your company’s future and
better information on which to base crucial business decisions.
The Purpose of Internal Planning
When undertaking your internal planning process, you must first
assess the goals and purpose of the process for your company.
Generally, internal planning can take one of three forms:
■
Evaluating. To provide information on company performance.
■
Goal Setting. To establish annual or periodic objectives.
■
Problem Solving. To address a particular issue or concern.
These types of plans differ only in their objectives and scope;
the process in each case is relatively similar. All three require
that you assemble or develop sufficient information to enable
you to evaluate and assess current company conditions; choose
the necessary personnel to be involved in the evaluation of the
data compiled; and have the ability to bring an honest and
critical eye to the examination of your company’s situation.
The Evaluational Plan
An evaluational plan provides management with the information
needed to make decisions. Data gathering and assessment, rather
than the recommendation of specific actions or the setting of
specific performance objectives, are emphasized in this type of
plan.
Such a plan particularly benefits a company that has not made a
close examination of its operations or the market conditions for
some time, or it may be used annually by a company that wants
to do an in-depth analysis of these factors on a regular basis. An
evaluational plan might be the most appropriate type for a
company in which all decisions are made at upper levels of
management only, and where the input of middle management
and staff is given relatively little weight.
The Goal-Setting Plan
Probably the most widely used type of corporate business plan

is that with the purpose of annual or periodic goal setting.
The function of this plan is not only to evaluate current and past
conditions within the company and its environment, but to
establish the specific, measurable objectives that departments
and/or individuals are expected to achieve.
Some of the areas in which specific objectives may be set are
below.
OBJECTIVES
Many companies set performance objectives in these and other
areas annually, based on past performance and projections of
future conditions.
Performance objectives should be:
■
Measurable. With specific numbers or dollar figures attached
rather than merely subjective qualities or quantities.
■
Reasonable. Based on a fair assessment of current and past
activity and a temperate projection of future conditions rather
than on an unreachable ideal.
■
Time Specific. Delineating a clear time frame in which the
objectives are to be achieved.
■
Motivational. Neither impossible to reach nor too easily
accomplished, either of which will reduce employee motivation.
Successkey terms
Key Ratio
A simple calculation that assesses the performance of a certain
aspect of a company. Key ratios include liquidity ratios,
profitability ratios, and debt ratios.
Liquidity
The ability to turn assets into cash quickly and easily; widely
traded stocks are usually a liquid asset.
The Problem-Solving Plan
Another option for internal planning is to narrow the planning

process to a few key issues to be addressed. This type of
problem-solving process focuses on the top priorities for
operational improvement rather than on an overall evaluation of
company performance. Planning for problem solving, however,
should not take the place of more-comprehensive planning; you
still need to look at your complete operations. But it offers you
a method of focusing resources and creativity on one or two
areas in order to make significant gains in performance.
A problem to be solved can be assigned to a department or
division, but often it is advisable instead to assemble a task
force to tackle the issue. Such a task force allows management
to bring together staff across divisional or departmental lines.
“The trials and tribulations and the fun of it all comes from
getting in tough places and then figuring out how to scramble
out of them.”
Kay Koplovitz
Chair, Kate Spade
Keep in mind that to a large extent whom you choose to
participate in the task force will determine the outcome. If the
task force is composed only of staff members who have been
with the company for 20 or more years, it is unlikely you will
come up with fresh approaches to the problem. If the members
are too inexperienced, on the other hand, they will not have the
necessary knowledge of the realities of the business nor will
their recommendations be viewed with much authority.
The problem-solving process consists of:
■
Defining the Problem. Either management or staff may delineate
the areas of concern or challenges.
■
Assembling the Team. Limit the number of people involved and
bring together only those whose contribution will move the
process forward; choose team members more for their
intelligence, attitude, and knowledge than for job title or data
access.

■
Considering
Solution
s. Persistent problems often require creative solutions; be
willing to make changes to achieve results.
■
Recommending Specific Activities. Suggest the changes or
enhancements necessary to solve the problem.
Large Corporations
Many, if not most, larger corporations now develop business
plans annually on a company-wide, divisional, departmental, or
team level. Successful Business Plan: Secrets and
Strategies serves as a guidebook for developing a plan at any of
these levels, whether corporate-wide or for an individual team.
For departmental or team planning, some sections may require
modification to accommodate specific circumstances or may not
be applicable at all.
As you work through the book, use the described process and
worksheets but adapt the material to your specific situation and
needs. While the term “you” is used throughout the book,
particular actions might be carried out by a subordinate,
research department, or other members of the planning team.
Nevertheless, the person making the final decisions should be

sufficiently informed about the planning process and have
access to raw data enabling him or her to competently evaluate
the action plans recommended by others.
If yours is a particularly large or complex business, you may
want to separate your business plan into two sections, one
containing the specific financial performance objectives and the
other examining more-strategic and long-term issues facing the
company.
Bottom-Up/Top-Down
The business planning process in large corporations is most
successful when conducted as a cooperative effort between
those on the top of the decision-making ladder and those who
actually carry out the decisions. A one-way planning process
without the involvement of both management and staff leads to
a company-wide lack of commitment to the plan and inevitably
undermines its effectiveness.
“What holds a lot of small business owners back is themselves.
The fear — the fear of mistakes, of getting out of their comfort
zone, of talking to someone who’s an expert.”
Bill Rancic
Serial Entrepreneur
In establishing and participating in the business planning
process, management has these responsibilities:
■
Clearly communicating the specific goals and importance of the

planning process.
■
Establishing the time frame for completion and execution.
■
Assembling the appropriate personnel and making time
available for them to participate.
■
Bringing in additional outside expertise if necessary.
■
Making available the necessary resources for the planning
process.
■
Being open and responsive to results and recommendations of
the plan.
Likewise, staff has certain responsibilities in the process:
■
Identifying areas of concern and specific problems.
■
Defining the resources and outside expertise required for the
planning process.
■
Providing the necessary data and information.
■
Honestly and diligently evaluating the data gathered.
■

Viewing the planning process as necessary and beneficial.
■
Realizing the limitations of their roles in decision-making.
Ratio Analysis
You may be surprised by how much you can learn about your
company and its profitability from a few relatively simple
calculations. Even if you think “number crunching” is only for
bleary-eyed accountants, you will discover that figures are vital
business tools. Particularly useful are the key ratios indicating
how one activity or figure relates to another.
For instance, the key ratio of return on equity compares total
net profit after taxes to the total amount of money invested in
the company. Dividing profit by the amount of equity allows
you to see exactly how much each invested dollar earned. This
is a critical number for your business as it shows how
effectively you used the money you had to spend. The return-
on-equity ratio is particularly important for investors who want
to know how efficiently the money they invested is being used
to create profits.
“The danger of drinking your own Kool-Aid is that no one else
likes the flavor of it.”
Premal Shah
President, Kiva
When evaluating these ratios and using them as a planning tool,
you want to look for ways to increase productivity by

decreasing the amount of assets necessary to generate sales,
reducing your debt, and increasing the amount of profitability
made on each sale.
The principal value of computing ratios for your company is in
comparing them from one time period to another. In this way,
you can assess both the progress your company is making in
controlling costs and increasing profitability and the trends you
see developing in these areas.
Another important way to use this information is to compare
these key ratios in your company with the ratios of other similar
companies in your industry. These figures are available in
financial publications such as the annual review by Dun &
Bradstreet, the Almanac of Business and Industrial Financial
Ratios (published by Prentice-Hall), and reports from industry
trade associations. A comparison of your ratios with those of
other leading companies will give you a better sense of your
company’s performance and competitive position.
The Key Ratio Analysis worksheet on pages 388–389 shows
how to calculate many of the most important measurements of
your business. The ratios included on this worksheet help you
better understand the profitability of your company and specific
operations, how well your company manages the assets it has at
its disposal, and your cash flow situation. A brief discussion of
the four ratios you will find on the Key Ratios Analysis

worksheet is provided below.
Liquidity Ratios
Liquidity ratios show the extent of the readily available assets,
indicating your company’s ability to meet short-term debts.
Generally, you want to try to increase liquidity and decrease
amounts tied up in inventory. Specific types of liquidity ratios
include:
■
Current. How capable the company is to cover short-term debts
with short-term assets. (Be certain to use current rather than
total assets and liabilities from balance sheets.)
■
Quick or “Acid Test.” How well the company could cover short-
term debts without selling inventory; this ratio should always be
greater than one.
■
Inventory to Net Working Capital. How much of the company’s
cash is tied up in inventory.
Profitability Ratios
Profitability ratios show how much the company has earned and
the profits made on sales. Your goal is to have the percentages
as high as possible. Profitability ratios include:
■
Profit to Sales. Relationship of total sales to actual profitability
after all expenses.

■
Return on Equity. Profitability in comparison to the investment
of stockholders.
■
Return on Assets. Profitability in comparison to both investment
and loans; how productive the company’s total assets are in
producing profit.
■
Gross Profit Margin. Income after the direct costs of sales are
deducted.
■
Net Profit Margin. Income after all expenses are deducted.
■
Earnings per Share. Amount of income expressed in terms of
each share of common stock held.
Debt Ratios
Debt ratios show the extent of the company’s debt and its
capacity for engaging in additional borrowing; generally, the
lower the percentages, the stronger the company’s financial
position. Debt ratios include:
■
Debt to Assets. How much the company has relied on borrowing
to finance its operations.
■
Debt to Equity. How much the company owes creditors in

comparison to the value owned by stockholders.
Activity Ratios
Activity ratios show how productively the company uses its
assets, and how much value the company gets for the inventory
or other assets it maintains. The greater the ratio value, the
further each dollar goes (except with the Average Collection
Period, which ideally is a low figure). Activity ratios include:
■
Inventory Turnover. Dollar value of the inventory it takes the
company to generate sales.
■
Inventory Utilization. Average amount of money the company
has invested in inventory.
■
Inventory Units Turnover. How much inventory the company
has on hand in relation to inventory sold.
■
Fixed Asset Utilization. Amount of plant and equipment used to
generate sales.
■
Total Asset Utilization. Amount of all assets required to
generate the company’s sales.
■
Average Collection Period. Length of time that the company’s
income is tied up in accounts receivable.

Key Customers
In most businesses, the “80-20 rule” applies to revenues. This
rule states that 80% of your income comes from 20% of your
customers. This means that a relatively small number of
customers are often crucial in determining your success.
80-20 RULE:
80% of your income comes from 20% of your customers
In most cases, this 20% is composed of actual individual
customers. However, in some cases, it may be a specific type of
customer who makes up the bulk of your business.
If indeed your business is dominated by a few key customers (or
types of customers), you should take a careful look at their
buying patterns and motivation. These customers are vital to
your ongoing financial well-being; you want to gain as much
insight into their purchasing behavior as possible.
Additionally, you can gain a much better understanding of your
customers by examining the significant customers you have
recently gained and the important customers you have recently
lost. This type of examination of trends in your customer base
gives you a sense of how the market views your company and
the future direction of your company’s sales.
The Key Customer Analysis worksheet on page 390, assists you
in evaluating the activity of your key customers.

Touching Base with Your Plan
In corporate business planning, a natural tendency exists to
spend a great deal of time and energy putting together a
business or annual plan, and then, once the planning process is
finished, forget the conclusions reached and go back to business
as usual. This not only wastes a great deal of resources, it also
creates a high level of cynicism about the importance and value
of the planning process.
To make your business plan a meaningful working document,
schedule periodic evaluation meetings to get back in touch with
the plan. Perhaps once a month at a staff meeting, the plan can
be reviewed and progress assessed. At the very least, the plan
should be reviewed quarterly with both management and staff
participating in the evaluation. Don’t let your business plan
gather dust; use it.
Chapter Summary
Existing businesses require business planning as much as start-
up enterprises do. Planning is a necessity for any company
aiming to improve its operations, increase its profitability, or
maintain or enlarge its market share. Planning is a regular part
of your business, not a once-in-a-business or once-in-a-decade
undertaking. Long-term success depends on proper planning:
It’s the only way to keep up with the competition.

1
Your ticket
to work...
OR
Your ticket out the door!
Communication Skills and Careers

Mary Ellen Guffey & Dana Loewy, Essentials of Business
Communication, 9th Edition
Chapter 1, Slide 2
2
Good Communication Skills Needed
Job placement
Job performance
Career advancement
Success in a

challenging world
of work
Chapter 1, Slide 3
3
What Do Employers Want?
Communication Skills

Today’s workers communicate more because of technology, the
Web, mobility, globalization, and the anytime-anywhere
workplace.
Professionalism
Employers demand
professionalism and
other “soft skills” such
as the ability to work
with others.
Chapter 1, Slide 4

4
Writing Skills Matter
"Businesses are crying out—they need to have people who write
better.”
Gaston Caperton, business
executive and president,
College Board
Chapter 1, Slide 5

5
Your Guide
Build Your Communication Skills
Instructor
Your Coach
See
http://www.cengagebrain.com
Textbook
Bonus Resources
Chapter 1, Slide 6

6
0
Renewed
emphasis
on ethics
Anytime-
anywhere and
nonterritorial
offices
Innovative
communication

technologies
Emphasis on
work groups
and virtual teams
Flattened
management
hierarchies
Heightened
global
competition
Advancing in
a Challenging
World of Work
Chapter 1, Slide 7

7
The Communication Process
Chapter 1, Slide 8

8
Chapter 1, Slide 9
How may the sender encode a message?
Verbally or nonverbally
By speaking, writing, gesturing
What kinds of channels carry messages?
E-mail, texts, memos, letters, phone, body
Other?

9
Chapter 1, Slide 10
How does a receiver decode a message?
Hearing, reading, observing
When is communication successful?
When a message is understood as the sender intended
How can a communicator provide for feedback?
Ask questions, check reactions, don’t dominate the exchange

10
Why Good Listening Skills Count
“No man ever listened himself out of a job.”
--Calvin Coolidge
30th U.S. President
(1923-1929)
Chapter 1, Slide 11

11
Barriers to Effective Listening
Chapter 1, Slide 12Physical barriersHearing disabilities, noisy
surroundingsPsychological barriersTuning out ideas that counter
our valuesLanguage problemsUnfamiliar or emotionally charged
wordsNonverbal distractionsClothing, mannerisms, radical
hairstyle, appearance

12
Chapter 1, Slide 13Thought speedMinds processing thoughts
faster than speakers say themFaking attentionPretending to
listenGrandstandingTalking all the time or listening only for the
next pause
Barriers to Effective Listening

13
Misconceptions About Listening
Listening is a matter of intelligence.
FACT: Careful listening is a learned behavior.
Speaking is more important than listening in the communication
process.
FACT: Speaking and listening are equally important.
Chapter 1, Slide 14

14
Listening is easy and requires little energy.
FACT: Active listeners undergo the same physiological changes
as a person jogging.
Listening and hearing are the same process.
FACT: Listening is a conscious, selective process. Hearing is
an involuntary act.
Chapter 1, Slide 15

15
Speakers are able to command listening.
FACT: Speakers cannot make a person really listen.
Hearing ability determines listening ability.
FACT: Listening happens mentally—between the ears.
Chapter 1, Slide 16

16
Speakers are totally responsible for communication success.
FACT: Communication is a two-way street.
Listening is only a matter of understanding a speaker’s words.
FACT: Nonverbal signals also help listeners gain understanding.
Chapter 1, Slide 17

17
Daily practice eliminates the need for listening training.
FACT: Without effective listening training, most practice
merely reinforces negative behaviors.
Competence in listening develops naturally.
FACT: Untrained people listen at only 25 percent efficiency.

Chapter 1, Slide 18
18
Building Powerful Listening Skills
Chapter 1, Slide 19
Stop talking.

Control your surroundings.
Establish a receptive
mind-set.
Keep an open mind.
Listen for main points.
Capitalize on lag time.
19
Listen between the lines.
Judge ideas, not appearances.

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