Presentation After you have fleshed out your business plan you will have the information you will need for a slide presentation (e.g., PowerPoint). This 12-slide presentation conveys the most important aspects of your business in a short time. More sophisticated investors, such as angel investors and venture capitalists, will typically not look at your written business plan until they have seen your slide presentation. Presentation (MS PowerPoint or equivalent) 1. Create a 12-slide presentation. Follow the outline on pp. 343–346 for the critical slides of your presentation and their placement. o Hints: Include the highlights of your elevator pitch, which shows that you understand your business. The elevator pitch is a concise description of your company—its product, market, competitive advantages, and so on. Whether pitching your business to an investor or describing it to a potential connection at a networking event, you need to be able explain your business succinctly to someone in the amount of time it would take to ride up a few floors in an elevator. Use the worksheet in the text (p. 362 | Your “Elevator Pitch”) to develop your elevator pitch. o Hints: You must limit your presentation to twelve (12) slides. You do not want to overwhelm your audience with too many slides or bore them with information they already know. 2. Cite three (3) resources you have used to complete the exercise. o Citations and references must follow APA format. The reference page is not included in the required page length. The specific course learning outcomes associated with this assignment are:  Describe strategic planning techniques used to formulate alternative strategies designed to achieve stated business goals.  Create a plan to implement a firm’s strategy and manage the change from current operations. Grading Rubric Assignment 4: Presentation Unacceptable Fair Proficient Exemplary Criteria Below 70% F 1. Create a 12slide presentation. Follow the outline on pp. 343–346 for the critical slides of your presentation and their placement. Weight: 70% 2. Clarity, writing mechanics, and formatting requirements Weight: 20% 3. 3 References Weight: 10% 80-89% B 90-100% A Did not submit or incompletely created a 12-slide presentation. Did not submit or incompletely followed the outline on pp. 343– 346 for the critical slides of your presentation and their placement. Partially created a 12-slide presentation. Partially followed the outline on pp. 343–346 for the critical slides of your presentation and their placement. 70-79% C Satisfactorily created a 12-slide presentation. Satisfactorily followed the outline on pp. 343–346 for the critical slides of your presentation and their placement. Thoroughly created a 12-slide presentation. Thoroughly followed the outline on pp. 343–346 for the critical slides of your presentation and their placement. More than 6 errors present 5-6 errors present 3-4 errors present 0-2 errors present No references provided. Does not meet the required number of references; some or all references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. Note: Please attached Business Plan/PDF example for assistance with creating this PowerPoint Slide Show. The PowerPoint must not be generic. Add features such as backgrounds that are easy on the eye “color scheme”, Pictures “towards the subject matter”, and graphs must be implemented. If a generic/basic Powerpoint is submitted you will be ask to re-do or withdraw. 3/1/2018 Strayer University Bookshelf: Successful Business Plan: Secrets & Strategies 12 CRITICAL SLIDES Title slide: your company’s name, a short company description, name of presenter(s) if presenting in person. Your elevator pitch: a succinct description of your products or services, market, and competitive advantages. Use vibrant language, and if possible, embed audio or video to demonstrate your product or service. Size of opportunity: this is what investors — VCs even more so than angels — want to know. To what size can your company potentially grow and what are your plans for future development? https://strayer.vitalsource.com/#/books/9781933895475/cfi/6/72!/4/170@0:52.5 1/4 3/1/2018 Strayer University Bookshelf: Successful Business Plan: Secrets & Strategies Your specific target customers: who they are and the customer needs that your product or service will meet. The market size: numbers and dollars, past growth, growth forecasts. The competition: division of market share, how your product compares to theirs, your value proposition in comparison to the competition’s, and barriers to entry. https://strayer.vitalsource.com/#/books/9781933895475/cfi/6/72!/4/170@0:52.5 2/4 3/1/2018 Strayer University Bookshelf: Successful Business Plan: Secrets & Strategies Your team: who they are, their past successes and experience, and why they are qualified to do the job. The business model: how you will distribute your product, pricing strategies, how you will reach your customers. Milestones: a time line that outlines when you expect to reach key achievements. https://strayer.vitalsource.com/#/books/9781933895475/cfi/6/72!/4/170@0:52.5 3/4 3/1/2018 Strayer University Bookshelf: Successful Business Plan: Secrets & Strategies Financials: a brief summary of key points from your income statement, balance sheet, and/or cash flow projections. Funding: how much you are asking for in this round, how many future rounds are expected, how much you will request during those rounds, and how the funds will be used. The investment opportunity: potential exit strategies and financial return for investors. https://strayer.vitalsource.com/#/books/9781933895475/cfi/6/72!/4/170@0:52.5 4/4 Running head: BUSINESS PLAN (DRAFT) 1 Business Plan (Draft) Name University Course Course ID Number Professor Date SECTION 1: BUSINESS PLAN (DRAFT) 2 Business Plan (Draft) NAB Company Smoothie Surprise is a NAB company that prepares smoothies and frozen dairy products with garden-fresh ingredients that are purchased from the local farming business. Other products offered include elements for smoothies and frozen yogurt. The real meaning of this name is that the options available for frozen drinks are "animated" by the consumer. You can mix a variety of flavors, from butterfly pea flowers to mint, in every frozen conception you buy. Mission Smoothie Surprise is an imaginary frozen food company that promotes and maintains a healthy lifestyle by having right supplements made from good ingredients of agriculture. We aim to improve nutrition by preparing fresh drinks that contain fruits, vegetables, juices, and milk. By making iced beverages full of nutrients, you can ensure that their diet is balanced and nutritious. Our goal is to bring local farmers' ingredients back to society and support local producers. Our merchandise is just a mixture of local components blended to create lovely creations. We strive to become a well-known regional company by involving people and families who opt for healthy options for dessert drinks. Our mission is to ensure adequate development that creates continuous annual growth via capital expansion as we support our local communities. We are currently active in various local agricultural markets in the Treasury area. For the whole sector, our goal is to have an average growth in the wood industry and to expand to the west coast. Our mission is to have a franchise where individuals can feel as if they are doing their part in not only the business sector but also providing for their local communities. SECTION 1: BUSINESS PLAN (DRAFT) 3 Trends in the Non-Alcoholic Beverage Industry The three reasons to choose the smoothie industry are first, they are healthy, and secondly, they can be an alternative to food or snacks and mainly because they are the fastest, portable and easy to use (Marcason, 2009). Smoothies can be made wherever with right equipment and ingredients. For everyone who works at schools and other areas, it is challenging to eat equally. Smoothies provide better treatment than other snacks citing them having good taste and giving comfort and portability. The market is expected to increase from 10 to 13% for the next five years. Low investments might lead to an increased market crisis. However, making use of smoothies and making many to be aware will ensure smooth growth. Milk has been the primary product feeding millions of people in the USA, approximately 577 million (Hoppe et al, 2008). Support for the continued growth in the population will call for making use of better products; hence, the Mintel report did recommend the use of smoothies. It will play a significant role in serving the population that is in search for a cup of fresh ingredients in addition to an interactive and adaptable experience and a sense of well-being. The milk market in the United States has proliferated in the last five years, mainly due to American food habits, which omit food and often based on hors d'oeuvres such as American battles. As for the number of customers fleeing for some reason, Mintel explored the Americans between April 2013 and June 2014; 56% of consumers were reported beaten (Hoppe, C., Andersen, G. S., Jacobsen, S., Molgaard, C., Friis, H., Sangild, P. T., & Michaelsen, K. F., (2008). Consumers between 25 and 34 accounted for 63% of float sales, in light of the younger millennium. According to Mintel's statement, "smoothie" section had a substantial advantage, mainly due to increased products and growing interest in comfort, fast food, and well-being. Information on the performance of the Mintel segment indicates that the stocks recorded steady SECTION 1: BUSINESS PLAN (DRAFT) 4 growth with the smallest portion increasing by 166% of sales, from $ 297 million in 2009 to $ 790 million in 2014 (Hoppe, C., Andersen, G. S., Jacobsen, S., Molgaard, C., Friis, H., Sangild, P. T., & Michaelsen, K. F., (2008). When the market developed, the iceboxes developed a split position; on the one hand, Quench Soifo (QSR) and c-Deposits leaked into the preferences for frozen drinks. On the other hand, smoothies offer alternatives to customers looking for functional foods and vitamin foods that cause BFY's interests such as energy drinks, yogurt, and juice. Ice cream is the first range of high-end products in the non-carbonated beverages sector. Smoothie beverages are made up of extracts, fresh fruit and other ingredients such as milk, sorbet or yogurt. Hence, smoothie's market segments were victorious in both emerging and trending markets. In recent years, flowers have become popular in the United States and the United Kingdom and are currently one of the most critical segments of the market for refreshments (Beschta & Ripple, 2009). Strategic Position Penetrating the market is one challenge that has to be overcome to ensure that the company becomes successful; there will be set strategies regarding timing and position of location of the company. The different strategic positions that can be utilized by this company include branding and sales channels. Production of similar products is one thing that the company expects at the end of the day. The company will ensure that the needed personnel do brand awareness thoroughly all over the nation as a way of curbing confusion within the customers. Therefore, active brand management will be put in place to carry out the activity. The products will be advertised in line with the healthy trend. In addition to that, the advertisement will major on the timing that will be needed in consuming the products. The location of the shops SECTION 1: BUSINESS PLAN (DRAFT) 5 will be widespread to all places that have frequent tourist visits citing them being in need of healthy meals. Moreover, kiosks will be set in areas experiencing high traffic location. Such strategies will ensure a reach to all possible customers in need of the smoothie. Achieving such target will call for setting up small kiosks with the least expenditure. General Description The distribution station used by Smoothie Surprise will be redirected to users. These products are made directly in the shop, so they cannot be stored anywhere. Products distributed are soft cotton and glass. These are direct products for users via web orders. Compliance is guaranteed at our facility in Herndon, Va., Where all products are shipped with their temperature control packaging to safeguard that the products are intact, mixed and delivered to the freezer ready for consumption. Types of Risks The three types of risk faced by this company are risks of production, regulation, and competition. The growth of fruits and vegetables and the stability of the climate affect the production of the company. The result is that the provided products are affected. In addition to that, the pricing that the company offers to the market will be altered drastically. In ensuring that such a risk is efficiently controlled, there will be a need to ensure that several suppliers are doing the supplies of the farm produces. In the case of one part of the nation is affected, the other parts will be operating efficiently and the continuous flow of the produces to the company will not be affected at any point. The company relies on delivers from local farmers all over the nation. However, there may come a time when there will be an encounter with a farmer not producing healthy produces leading to a risk of regulation. The company will ensure to deal with such a SECTION 1: BUSINESS PLAN (DRAFT) 6 challenge by providing to be consistent with their suppliers who have too complied with the set regulations by FDA. The loyalty of the suppliers will play a significant role in ensuring that there is consistency in the smoothies that are brought to the market. Risk of competition is not something to be silent about in the city or suburb of the DMV. There is no doubt that there is a competitive market for the unlimited purpose of unlimited consumers. However, that will not hinder the operation of the Smoothie Surprise Company. Maintaining high levels of friendliness will play a significant role in ensuring to deal with the competitive market efficiently. In addition to that, the company will implement the use of loyalty cards that will make the customers keep returning to the particular business for a variety of products. SWOT Analysis The United States has expressed the greatest desire for organic food this year, with a turnover of $ 26.7 billion (McCarthy, 2015). Juices and smoothies are an integral part of the beverage category (Statistics, 2015). The market was estimated to be about $ 23 billion in 2013 based on revenue generated (Statistics, 2015). Recent prices predict a price increase of $ 12 per box of orange in 2022 (Statistics, 2015). Compared to local icehouses, there was a 16% increase in 2014, due to the urgency, all 3.7 billion avoided (Rush, 2015). Sales of juice and beverage segments in dollars rose by 6.4% to $ 827.9 million, while units increased by 6.2% to 234.4 million (Kennedy, 2015). Such operation is by the strengths and opportunities shown. However, rising too much greater heights was affected by some of the weaknesses. Continued activity at the particular level will be affected the mentioned threats if they will not be dealt with effectively. SECTION 1: BUSINESS PLAN (DRAFT) 7 Strengths • Availability of Fresh Weaknesses • ingredients smoothies market • Healthy Selections • Exceptional membership established industries such as offers Jamba Juice & Smoothie King • Diverse menu options • • Opportunities • Offering brand name with local Offering brand name with Athletic Competition amongst other Climate change on produce Threats • business,’ i.e., grocery stores • Low possibilities to strengthen Competition from other smoothie establishments • departments, i.e., NFL, NBA, and Competition from food chains, fast-food restaurants MLB • Increasing rates for ingredients • Working with Farmer’s markets • Climate change for production of • Partner with health foods stores and education departments, i.e, public schools and colleges • Working with the weight-loss market fresh fruits and vegetables SECTION 1: BUSINESS PLAN (DRAFT) 8 Marketing Plan & Sales Strategy The determination of the target market is essential as it helps in ensuring increased competition for the company and the focus on the wide range of the consumers in the market. There is an analysis of the changes taking place in the market and the strategies that help in the alignment of the business to the changing consumers’ tastes and preferences. Target Market The target market for the company is a diversified demographic currently located in Woodbridge, VA 22191. The market will be one that appreciates healthy lifestyles and is above the age of 13 years. Therefore, the target market consists of middle-aged people between the ages of 15-55 years. The median age of the target market is 39.0, which makes it appropriate. The company locality is within a well-developed area, with 1,843 housing units, which is also a result of traffic for the company’s demand levels. The total population for this area was reported as reaching 4,436 (Census.Gov, 2016). This was a significant increment in the population, above that reported in 2010 (4,055). The increase in population implies an increase in the market, since smoothie drinks are not limited by age and a kid as young as two years old can enjoy the healthy beverages. The graph below shows the Woodbridge’s population. SECTION 1: BUSINESS PLAN (DRAFT) 9 The level of educattion will also affect the demand for my products. The products will capitalize of the helath benefits, and thus only the educated people can understand the importance of eating healthily. Statistics shows that over 91% of the target area population has attained secondary school education, with is the basic education level that would esily understand the essence of heathy diets. This means that more than 4,000 people will form the target population (91%). The following chart shows the educational attainment across the various educational levels. Source: http://www.towncharts.com/Virginia/Education/Woodbridge-CDP-VA-Educationdata.html The flavors and inclinations also identify the types of ingredients that are to be used in the beverages. All the ingredients used have to consider the need for a healthy lifestyle that is also good for those in the developed area with a high level of modernization. The median household income is probably at 97,535 with only 7.8% below the poverty levels (Census.Gov, 2018). The income levels within the place are high implying that the average income of the individual will determine their purchasing power. The high income of the target population SECTION 1: BUSINESS PLAN (DRAFT) 10 implies that the people are capable of purchasing the products. The chart below shows the income levels of the target population. The beverages are not specific to only those who strictly live a healthy lifestyle but also the regular individuals who purchase the beverage for other consumer purposes. For this reason, the company will not only dwell on the healthy perspective of the drinks, but also other aspects such as the taste of the consumers, to ensure that the products gain a cutting edge above those from the competitors. SECTION 1: BUSINESS PLAN (DRAFT) 11 Market Competition The Smoothie market is changing at a high rate, and this means that there is need to focus on the measures that help in increasing the competition in the long run. The attraction and the retention of the consumers are essential, as there is the creation of the solutions that enable the increase of the attractiveness of the consumers. The high number of the entrants in the industry leads to increased competition in the market, and this creates the need to analyze the changes taking place and the enhancement of the services offered to the consumers. One of the main competitors in United States market is Jamba Juice, and this company has the most significant market share due to its innovative measures (Burçak Cagla & Muhammet Yasar, 2015). The company controls 30% of the market, and the revenues that it incurs are $78 million, and there is an increase in the market share trend in the market (Marketwatch, 2018). The activation of the healthy lifestyle requires that there is focus on the categorization of the competitors and the areas where the company needs to implement the strategies of competition. The other major competitors are; Smoothie King, Maui Wowi, Planet Smoothie, and Starbucks. Discussion of the Major Competitor - Jamba Juice Jamba Juice is a Company based in America. It runs a chain of juice stores around the nation (Jamba Inc, 2012). The organization works as part of the eatery businesses and has spent significant time in adding value to the ordinary drinks. These refreshments incorporate; crisp juice, smoothies, juice mixes, yogurt, tea, and espresso. The stores additionally give light sustenance, for example, sandwiches, cereal, smaller than usual wraps, breakfast wraps, bread and other prepared items. Jamba juice works on an establishment display. The firm runs 755 stores in various states (Jamba Inc, 2012). Jamba Juice claims 301 of these stores while the other 454 are worked by franchisees. Jamba Juice likewise has established stores in Canada, the SECTION 1: BUSINESS PLAN (DRAFT) 12 Philippines, and South Korea. The company’s gross revenue was 32,206m, 39,104m, and 43,344m in 2015, 2016 and 2017 respectively, according to yahoo finance statistics. The company’s revenue for the FY 2017 is presented in the chart below. Source: http://www.jambajuice.com/more-jamba/about-jamba Jamba’s Main Competitive Advantage Jamba's most essential competitive advantage is its top-notch customer service. The organization has given huge assets to guarantee that every one of its stores offer a prevalent client encounter. On visiting any of Jamba's branches, one finds connecting with and energetic representatives. The additional accentuation on client affinity enables the business to create unwaveringness. Jamba has set up thorough measures for client administration and runs a reward program that prizes stores that accomplish their client benefit objectives. Another imperative upper hand for the organization is its top notch smoothie offerings. The smoothies are generally solid and have pulled in ideal surveys. The smoothies convey no high fructose corn syrup, no simulated additives, and no fake flavors. Jamba's smoothies are delightful and utilize the two veggies and organic products. The competitive pricing in the market leads to the need to focus on the deals that are attractive to the consumers and the offering of discounts that focus on the increase of SECTION 1: BUSINESS PLAN (DRAFT) 13 competition. The increase in the consumption of the smoothies creates the need to focus on the investments that lead to the reinforcement of the brand and moving the company brand towards becoming the best in the market. The Tropical Smoothie Café is also another competitor that is well established in the market, and this entails the increase of the channels that they use in reaching the consumers. Tropical Smoothie Café currently has an average gross sales of $846,431 thousand, which their company has to expand nationally from the initial establishment located Tallahassee, Florida (Market Insider, 2018). The need to enhance the opening of the different locations and the dedication towards the creation of new markets leads to focusing on the goals of the opening of the stores and the increase in the drive of company performance. Strategy The strategy that the company will utilize includes penetrating the market through the use of promotion, as this is important in helping to popularize the brand of the company. Bearing in mind that this will be a new product in the market, selling it at a promotional price will benefit both the company and the consumers. The consumers will be able to get a taste of the new products at a discounted price, whereas the company gains popularity, its products get known and avoiding losses at the same time. It is difficult for a new entrant to match the prices of the existing products in the market, until its products get known and accepted as either a better version of the existing ones or clearly differentiable. There is a focus on the interests of the consumers in the promotion strategy, and this involves having unique services where the time taken for the clients to receive the services is few (John & Steven, 2008). It is essential that the business considers the potential of the customers and this means that there is an observation of the purchase pattern as it helps in the development of the promotions that help in increasing the sales of the common. It is essential that there is SECTION 1: BUSINESS PLAN (DRAFT) 14 focus on the quality of the smoothie and this involves the focus on the content that the consumers require as it helps in the creation of the loyalty of the consumers increasing the retention levels. Differentiation is an effective competitive strategy once attained by a company to attain differentiation of our smoothie from the competitors; the uniqueness is in the ingredients used, and the flavors. The existing companies focus on the flavor aspect, at the expense of the healthiness factors. Ingredients will be keenly selected to ensure that our smoothies not only standout but also guarantee a healthy diet. The use of the pricing strategy as a means of differentiation is significant as there is focus on the different costs that the consumers incur and this leads to defining of the features of the products (Hooley et al., 2001). The interests of the consumers are essential, as there is factoring of the changes to implement and this helps in the creation of loyalty to the consumers. Introducing the 5F’s of the Product The 5F’s is a psychographics which evaluates the product’s ability to meet the consumers’ needs, benefit the manufacturing company and remain competitive against the competitor’s products in the long run. The following is the analysis of my product under the 5F’s: • Function – The product is in the refreshment category of foods. Therefore, the main purpose of the product is to meet the refreshment requirement. The product will perfectly meet this need, since it is similar to the other products in the market meant for the same purpose. Selective flavor will be added to give the consumers their preferred taste. • Finances – The sale of the products will generate revenue for the company, which the pricing strategy will ensure that the revenue generated is sufficient to meet all the operational costs and give a significant profit. SECTION 1: BUSINESS PLAN (DRAFT) • 15 Freedom – The products will be available in strategically located stores, to the proximity of the consumers. They will be packaged in different sized packaged, to give consumers freedom of choice. • Feeling – The most important feeling the product will give the consumers is that, besides refreshment, their health is taken care of. That is, the product is healthy! • Future – Continuous research and development will be carried out to ensure frequent improvement in the products. The product will however maintain its identity, to give the consumers a guarantee of the future. Marketing Vehicles The marketing vehicles that the company will use includes the use of advertising and sampling of the products in the different outlets and this is important as it helps the consumers to assess the quality of the product (Burke, 2011). The use of the media advertising involves both print and television advertisement, and this is important in helping to focus on the preferences of the consumers and the information that relates to the program. The company will also incorporate the company website in advertising helping to increase familiarization with the company products. Also, the company will be participating in charity events. By utilizing a marketing approach of sponsoring, it will play an enormous role in creating a brand and the necessary awareness level altogether. Participating in Charity events requires the use of promotional materials that can be used in other major events to market the company products (Burke, 2011). Once creating a contact list this will enhance the speed at which marketing and building a brand is prepared. Once consumers are encouraged to sign up, they can receive samples of the products. SECTION 1: BUSINESS PLAN (DRAFT) 16 Advertising is an effective strategy of creating awareness of the company’s products. As revealed by (Dudovskiy, 2018), the Starbuck’s main growth strategy is advertising, which creates awareness of the company’s product. In his analytical article, Dudovskiy (2018) indicated that a combination of provision of free product samples, combines with advertising would result in creation of a new product. Some people do not trust new products even when advertised, and they would prefer to test it so as to be sure of its quality before buying. Ethics and Social Responsibility Plan There are various concerns that surround the operations and conduct of a business. While there are various policies that may have been put in place by the authorities and the industry in managing the operations of a company, every company has a duty to maintain best standards in ways that do not harm its consumers and the community within its operation locations (Abrams, 2014). As such, social responsibility and ethics are a self-regulated extension of civic duties that the govern the operations of a company while at the same time balancing between the economic growth of the company, the environment that it operates in, and the welfare of the general society. The company of concern for this paper is Smoothie Surprise, and that falls in the nonalcoholic beverages (NAB) industry, and that has been growing at a fast rate as a result of rising popularity in its area of operation. However, this is amid various concerns that have been raised regarding such companies, and most of which have been backed by scientific research and observable effects. The following is an ethics and social responsibility plan for the company. Ways in which the Company is committing to being a Corporate Citizen Smoothie Surprise is committed to benefiting the community in its areas of operation. Other than providing high-quality and healthy drinks in its facilities, the company is committed to providing employment to the locals so as to ensure that the community and the company grow SECTION 1: BUSINESS PLAN (DRAFT) 17 together. In this case, at least 75% of all labor in every location will be sourced from the adjacent community on merits of qualification. Smoothie Surprise is committed to observing the laws and regulations that govern the industry. Since the industry is guided by various policies from both the public health sector, food and drugs administration agencies, and various other agencies acting on behalf of the government, Smoothie Surprise is committed to following all these policies in the best ways possible in order to realize its goal of improving the welfare of the citizens (Knowles, 2002). Smoothie Surprise recognizes the value of the employees towards the progress of the company. It realizes the efforts of employees for the company to succeed. As a result, the company will commit to providing a conducive working environment as well as one that best fits their needs and lifestyles. At Smoothie Surprise, there will be business leaders and not managers. This provides a good platform for employees to interact with their seniors. Further, the company has a dedicated office that collects complaints from the employees and handles them effectively to ensure that employees have the best experience at the company. Smoothie Surprise will be built on the grounds of multiculturalism. In this regard, every individual –regardless of their race, gender, and ethnicity – will have an equal chance of securing a job at the company. In fact, hiring will be based on a first come first hired basis as well as the qualifications that an individual possesses. Similarly, every employee will be subjected to similar appraisal standards and process, which mean that every one of them has an equal chance to excel at the company. SECTION 1: BUSINESS PLAN (DRAFT) 18 Effect of Company’s Activities on the Environment Smoothie Surprise looks forward to sourcing all its raw materials from the local community based on availability. For scarce resources such as water, however, the company will always strive to minimize the usage as much as possible while at the same time striving to abide by the local regulations. At the same time, the company has realized the need to adopt green energy, which is the reason that its facilities will be fitted with large solar panels that will provide the primary source of power. In return, this will limit the emission of carbon that is common with the use of fossil fuel as well as misuse of electricity. In every area of operation, the company will liaise with the authorities so as to identify best garbage disposal sites. However, the company will ensure that every material that can be recycled or reused is put to the best use possible. Smoothie Surprise realizes the detrimental effects that arise from the use of poor packaging materials and particularly those based on non-biodegradable materials (Zhou, 2007). In China, for instance, fingers have been pointed towards industrialization and the poor policies governing companies in the country, and with littering being reported in many streets alongside contamination and clogging of rivers as well as the death of sea creatures (Zhang, Mauzerall, Zhu, Liang, Remais, 2010). This has been primarily blamed on the accumulation of nonbiodegradable and poor quality materials as well as poor dumping of garbage and toxic substances, a practice that Smoothie Surprise commits to avoid at all costs for the benefit of the society and future generations. To safeguard the environment and the consumers, the company will use packaging materials that can be recycled while at the same time using biodegradable material and requiring all suppliers to observe the same. SECTION 1: BUSINESS PLAN (DRAFT) 19 Mitigating Health Issues Smoothie Surprise is aware of the association of beverages products with various lifestyle health issues such as diabetes, cardiovascular diseases, obesity, and cancer (Rippe & Angelopoulos, 2016; Schwendicke & Stolpe, 2017; Veerman, Sacks, Antonopoulos & Martin, 2016). The company will always strive to ensure that the lives and health of its consumers are safeguarded at all times. In this case, Smoothie Surprise has learned that organic products, despite being more expensive than sweetened beverages, are healthier to all groups within the community (Nicklas, Kleinman & O’Neil, 2012). As a countermeasure to health concerns, Smoothie Surprise is adopting a culture that avails drinks from naturally grown fruits and that have been prepared without additives. Operations Plan Key Aspect of Operations The company will process the products in its own facilities located in Woodbridge, VA. Fruits will be purchased directly from farmers and delivered to the factory upon which they will be processed and packaged ready for the markets. Goods will then be shipped to the markets including the local retail outlets and large restaurants. To maintain quality, Smoothie Surprise will inspect production at various stages and monitor the constituents of every batch. The following materials will be required: • Two mixer beverage filling machines at $ 57000 total. • Two Accutek AccuSnap capper bottling machines at $19000 total. • Three trucks for transporting raw materials and products at $60,000 total SECTION 1: BUSINESS PLAN (DRAFT) • Five computers for processing records and maintaining data at $5000 total • Graphics software at $1000 • Inventory management software at $ 2000 • Leased facility at $10000 a month • Leased printer at $500 a month • Leased labeling machine at $500 per month • Plastic packaging materials worth $30,000 • Labels worth $1000 • Cartons worth $ 500 Cost and Time Efficiencies • Employees: 30 • Labor per person per hour: $15 • Production per hour: 500 units • Production per day: 4000 units • Production cost per day: $3600 • Cost savings: $1200 per day • Cost per unit: $438,000 20 SECTION 1: BUSINESS PLAN (DRAFT) 21 Competitive Advantages • Low costs of production since the company will utilize leased equipment. • A supply chain that is more reliable than competitors since Smoothie Surprise will use its own trucks. • A large number of employees than most other start-up companies. • High-quality and premium products with high-value addition. • Easy access to quality raw materials directly from farmers. Problems Addressed and Overcome • Maintaining performance consistency and ability to adjust to unstable market needs. • Training of employees to adapt to the new business requirements. • Establishing collaboration with large clients such as retail outlets and restaurants. Rationale for Competitive Advantage Smoothie Surprise will rely on a number of leased equipment, which will help lower operational costs. Unlike purchasing, leased materials may attract lower costs as contracts will only be negotiated when the equipment is required and can be changed any moment a newer and more efficient one arrives in the market. The owner is in good relations with some of the biggest fruit producers, having worked with them for a period of time, a factor that will be used to boost the chances of guaranteeing their supplies. At the same time, the company will raise the efficiency and reliability of the SECTION 1: BUSINESS PLAN (DRAFT) 22 supply chain by purchasing trucks, and that can be used for both picking supplies from farms and making deliveries of products. R&D Activities The company will establish its research and development team that should work closely with farmers to develop high-performance and high-quality fruits. These should guarantee the company ready supplies market while at the same time giving it an edge on quality issues. At the same time, the company will have a number of market researchers that will be keeping track on scientific research on lifestyle and health issues related to foods, which will then extend this research to the formulation of products that meet the tastes expectations and ingredients available in every product. Technology Plan Software • Inventory management software will be purchased for $2000. • Graphics design software will be purchased at $1000 • Cloud storage will be leased at $ 750 per year • Cloud computing will be obtained on-demand basis. Hardware • Five computers for processing records and maintaining data at $5000 • Cloud servers will be eased at $1000 per year. • Surveillance cameras will be fitted at all points of entry at a cost of $5000. SECTION 1: BUSINESS PLAN (DRAFT) 23 Personnel • One IT administrator will be hired to manage the system. • An IT firm will be contracted to maintain and audit the system. Rationale for Personnel Choice There are a number of reasons that the company has chosen to incorporate contracted and in-house employees. Notably, an in-house technician that also functions as the IT administrator is likely to maintain more privacy regarding the company’s operations by managing leakage of information that may occur while working with outsourced employees (Burnett, 2016). At the same time, the employee is available at all times to monitor and service the IT equipment, which means that errors and issues will be identified on a timely basis. The IT administrator will also be responsible for monitoring the surveillance system and also maintaining it. The company has also chosen to contract an IT company to maintain and audit the system as these processes are not conducted on a daily basis, which means that the company will save on costs of operation to a large extent. Management and Organization Key Management and Employees • Company President/CEO • Chief Sales/Marketing Officer (CMO/CSO) • Chief Financial Officer (CFO) • Chief Operations Officer (COO) SECTION 1: BUSINESS PLAN (DRAFT) • IT Administrator • Human Resource Officer (HRO) 24 Board Members and Advisors • Suppliers Representative • Customers Representative • CEO • HRO • COO Management Structure and Style • The company will adopt a functional management structure. • The company will adopt a consultative management style. • Management Hierarchy President/ CEO CMO/CSO HRO IT administrator CFO COO SECTION 1: BUSINESS PLAN (DRAFT) 25 Rationale for the Management Structure and Style There are a number of reasons that a functional management structure has been adopted. Since Smoothie Surprise is a startup company with a small number of resources to manage, it will need a lean management. At the same time, a functional management structure enables an organization to speed up response to challenges and implement changes easily (Gleeson, 2018). This is due to the closeness of the functional managers with the employees, which provides a platform to interact easily, identify concerns, complaints, and problems faster, and develop a solution at a faster rate. This solution is then implemented easily due to the elimination of complex bureaucracy. A functional management structure also raises responsibility and operational clarity. According to Gleeson (2018), the fact that employees are grouped based on their functions simplifies the allocation of responsibilities while at the same time simplifying management. A different benefit is that this management structure will help Smoothie Surprise to develop highly specialized employees, which then minimizes chances for errors while at the same time raising productivity. There are a number of reasons that the company has chosen consultative management style is that it allows an organization to boost the interaction between the employees and their managers by having employees and other stakeholders involved in decision-making. According to Gale (2012), this is likely to raise the accountability of employees while at the same time improving their satisfaction levels. This is particularly the case with managers possess the necessary skills to motivate the employees. In the end, the company will experience increased production while at the same time promoting faster identification of problems. SECTION 1: BUSINESS PLAN (DRAFT) 26 Conclusion Smoothie Surprise products meet the needs for a healthy lifestyle offered at friendly prices, and this is important in helping to improve the convenience to the customers and the meeting their specific needs. The constant innovation measures of the company will assist in the improvement of the product according to the specification of the consumers, and this will help in the achievement of the branding of our market pitch: Natures remedy; what feels good is good! SECTION 1: BUSINESS PLAN (DRAFT) 27 References Abrams, Rhonda. Successful Business Plan, 6th Edition. The Planning Shop, 20140612. Burçak Cagla, G., & Muhammet Yasar, O. (2015). Identifying Competitive Positioning Strategies of Universities: Evidence from Turkey. Cypriot Journal Of Educational Sciences, Vol 10, Iss 2, Pp 108-121 (2015), (2), 108. Burke, S. J. (2011). Competitive positioning strength: market measurement. Journal Of Strategic Marketing, 19(5), 421. doi:10.1080/0965254X.2011.581385 Burnett, R. (2016). Outsourcing IT, the legal aspects: Planning, contracting, managing and the law. London: Routledge. Dudovskiy, J. (2018). 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