Business Strategic Plan

Sara Beygi

Hetu Shah

Ashkon Yazdi

Jinrun Li

Spice Boyz

Corp Analysis- 09April2019

· Three page (recommended), double space, MS Word

· Check syntax, grammar, spelling

· One person- Upload to ilearn - Paper 1

· Your evaluation of any company strategic plan

Consider:

· Source and model

· Multipurpose sauce

· Level of detail

·

· Potential successes

· Could be a replacement for ranch- the new favorite sauce.

· Plan development

· Will this work for the company

· Implementation difficulty and blocks

· Could they sell this

· They can sell it all over the world, not just in New Zealand.

· Recommendations

· Recommend to get it approved by American FDA and start selling in grocery stores- then start marketing.

· Proposal

· Everything in the year was very rushed. We can make a strategic plan for the company to carry out the product and make it more professional and finalized.

· Company selected

· Spice Boyz

· Reason

· We need a new sauce introduced because ranch is boring.

· Background

· 3 boys began the project in New Zealand for a class assignment, and then continued to a national competition.

· Need for SP

· Needs one because it began as a school project. They are a startup company so they need to carry out all of the goals that it wants to complete.

· Your action steps.

CORPORATE PROPOSAL

Spice Boyz NZ is a company based in New Zealand (NZ) who have taken a much-loved family recipe and created a sauce that they aim to have become the number one family sauce in New Zealand. As their main product; named Telza Sauce suggests, the company's establishment ‘tells-a’ story where the recipe was passed down through generations of the CFO’s family, and is now being shared by 3 teenagers with the world. Initially starting off as a mere school project in 2016, the business quickly gained traction and the 3 boys recognized the potential they had after placing 4th in a national competition. Having since been consumed with university work, the founders aim to re-modelise and reboot their campaign after graduating at the end of 2019.

Business model:

Below we have adopted the business Canvas model and explained the current position of Spice Boyz. Through the use of this model we are able to identify where the company’s weak points are, and hence act upon this by creating a customised strategic plan in order for Spice Boyz to be more successful. Customer segments: The Telza Sauce was solely available at local supermarkets within a particular suburb of Auckland in New Zealand. Spice Boyz recognised that although the Telza Sauce was made to be enjoyed by everyone, their predominant target market are the daily supermarket shoppers, as they would be the ones carrying out the action of purchasing their product. Upon research, they identified that women aged between 35-45 were the main household shoppers, and hence was established as their leading customer segment.

Value proposition: The Telza Sauce is introducing a brand new taste in the sauce market. Having carried out comparison tests, the Spice Boyz bring a unique proposition along with their rare story; creating value greater than just the product itself for the consumer. Given their stance, they also have the strength to attract customers outside of their main target market, due to the fact that new products and tastes generally attract more customer attention and people wanting to try. Furthermore, given the multi-purpose use of the Telza Sauce (much like the use of ketchup) and the ‘tangy’ taste, their product gives a effective alternative to consumers in trying to bring change to their daily meals. The Telza Sauce has the ability to enhance normal day-to-day food, into something much more satisfying for the consumer.

Channels & Revenue streams: Currently the Telza Sauce is only available through two separate channels. The first being through the Spice Boyz’s facebook page, and secondly at a local supermarket in the Manukau suburb of Auckland. The sales of the Telza Sauce is currently the sole revenue stream for Spice Boyz.

Cost structures: Based on their annual review, their leading cost attribute is ‘cost of production’. With the concept of ‘economies of scale’ being the major driver of this cost attribute, it makes it very difficult for Spice Boyz to increase profit margins. In addition, having only been existent for the past 2 years, Spice Boyz incur significant start-up costs which also considerably dents their profits.

Key resources: As mentioned above, due to the nature of the company being a start-up, and in the very early stages of its life, Spice Boyz do not have too many resources at their disposal. Considering the 4 broad resource categories; physical, intellectual, human and financial, they certainly have strong limitations in all of the aspects.

Given the Spice Boyz’s unique value proposition and overall business idea, we believe that there is potential for success, however, they must proceed strategically. Given the promising business idea, the effectiveness of their business activity thus far has not been up to the mark due to various reasons, but predominantly caused by the lack of key resources.

Therefore, our strategic plan for Spice Boyz will be focused on outlining how they can implement key activities and how they should maintain customer relationships in order for the company to grow. Considering the lack of resources, we will also look into how Spice Boyz can develop key partnerships in order to outsource some of their business activities in order make their business more efficient.

STRATEGIC PLAN

Vision: “To become the no.1 sauce for family mealtimes in New Zealand”.

Mission: To offer new alternatives to the tomato of sauce that provides variety to the customer.

Values: Passionate, diversity, quality, innovation & fun!

Corporate objectives:

To be able to be provided in all top tier grocery stores.

To become a well known brand.

Unique Selling Proposition

· What makes you better

· What do you have to offer

· What benefits will the customer service

· Why should someone buy from you

· Emotions

· Think in terms of customer- speak their language

· Who cares/Tell me more.

List five reasons why your organization should be developing a strategic direction.

What are some barriers that might block your strategic direction?

If you have clear strategy and efficient operation, you have had success in the past and are poised for a successful future. Approximately 10% of the United States companies exist in this quadrant. A clear strategy, but inefficient operations means you may be successful in the present, but the continued success is doubtful. Roughly 30% of the companies fit here. If you've had unclear strategy and efficient operations, you've had success in the past, but again, your future is doubtful. Most U. S. companies (50%) work in this quadrant. The last quadrant shows unclear strategy and inefficient operations — which means not much success in the past and very little chance of future success. How long can a company like this stay in business?

Determine which quadrant presently describes your company. Ask several of your key staff of their perception. Do not be disturbed if their answers are different than yours. If you find you do not have a clear strategy and efficient operations, what steps will you take to get there? How important is it to you to have clear strategy and efficient operations?

RUBRIC:

• 1. Strategy - Vision, Goals, Values

• 2. Strategic Objectives

– Measurements-success criteria

• 3. Background

• 4. Key Stakeholders

– Partnerships

– Funding agency

• 5. Potential Market

– Customers

– End users

• 6. Unique Selling Proposition

– What makes you better

– What do you have to offer

– Benefits

• 7. Competitive Analysis

• 8. Organization and functions

– Marketing, Sales, Business Development

– Production / Manufacturing

– Distribution

• 9. Resources

• 10. Infrastructure

– IT

– Training and personal development

– Research and development

– Human resources

• 11. Financials

– Funding

– Capitol purchases

– Return on Investment (ROI)

• 12. Schedule

• 13. Risks

Quantitative analyse

Subject matter expert

Excel sheet:risk event , qualitative (low,med,high) and answer/solution to risk