Assignment 4: Business Plan--Final
wilons
Assignment1CompanyDescriptionandSWOTAnalysis.docxRunning Head: REVISED COMPANY DESCRIPTION 2
REVISED COMPANY DESCRIPTION 2
Company Description and SWOT Analysis
Shaquinna Wilson
Andrea Banto
BUS599 Strategic Management
Strayer University
January 26, 2020
Revised Non-Alcoholic Beverage Company name and an explanation of its significance
The name of my non-alcoholic beverage company is Fresh N Fruity. Besides, the name is significantly established to demonstrate the value and quality attached to the brand, including its beverage. Moreover, Fresh N Fruity is focused on promoting healthful drinking amidst citizens as well as family setting (Cornelsen et. al.,2017)). Furthermore, it is intended to ensure that customers who consume the product are capable of executing their daily tasks without encountering adverse effects related to alcoholic drinks. Also, the name Fresh N Fruity is an ideal of quality that is delivered to the customers who consume the product.
Revised company’s mission statement and rationale for its components
The mission statement for the Fresh N Fruity company is to promote quality life for healthy and happier consumers every day. Besides, the fresh fruit juice purposefully exists to enhance quality life by encouraging lifestyles of healthy drinking as well as sober minds (David et. al.,2016). Also, this will be achieved from an individual level, which will transit to families, friends, societies as well as nations.
Trends in the Non-Alcoholic Beverage Industry
There are key market trends in the non-alcoholic beverage industry as presented below;
Online sales promoting the market growth
Based on the increasing number of consumers experiencing hectic schedules as well as lifestyles, online shopping is prevalently becoming a convenient shopping medium associated with non-alcoholic beverages (Hagemann et. al.,2016). Furthermore, this online shopping is gaining momentum since it is suitable for customers to purchase non-alcoholic beverages online while saving travel time. Besides, the platform of online stores has established itself as a convenient marketplace, providing a broad range related to non-alcoholic drinks.
Flourishing opportunities within Asia-Pacific
The food and the beverage industry associated with Asia-Pacific, are growing at a higher rate as compared to those of developed regions such as North America and Western Europe. Moreover, the area is inhabited by a large and rapidly growing society of middle-class consumers. Consequently, this indicates potential growth presence, specifically for the segment of iced coffee drinks (Vercammen et. al.,2019). Also, carbonated beverages are poised because of the largest portion of non-alcoholic beverages. However, the use of these soft drinks as well as carbonated drinks, is expected to decrease based on the content of sugar, including healthier alternatives preferences.
Besides, the market size of the non-alcoholic beverage was estimated to be $ 1,548 billion in 2015, and it is projected to grow at 4.4% CAGR, representing $ 2090 billion by 2022. Besides, this attributed to the increasing demand associated with functional beverages, which promote good health while maintaining the drinks' taste (Walia,2019). Also, demand for juices (non-carbonated beverages) displayed the fastest growth rate during the prediction, and this is as a result of the health awareness rise amidst customers.
Best Strategic Position for The Fresh N Fruity Company
The best strategic position which will enable my company to achieve superior performance in the industry is differentiation (Putra,2018). Moreover, I will employ this strategic position by ensuring that my company produces a premium-priced product while delivering distinctive value to the customers.
Overview of the Company's Distribution Channel
In reference to the company's distribution channel, I will ensure that my company is focused on using the online distribution channel to avail the company's products to the end-users effectively. Furthermore, the online distribution channel associated with non-alcoholic beverages, the most convenient platform, and has a wide variety of options (Melacini et. al.,2018). Moreover, I will ensure that my company contracts the companies offering order fulfillment services to effectively manage and enhance the viability of the online distribution channel.
Three Types of Risks That My Business Faces and Mitigation Measures.
Regulatory Risks
One of the risks that affect the performance of my company is regulatory risk, such as subject to an enforced quality standard. Besides, the Fresh N Fruity Company has to ensure that the end product quality is enhanced per the established regulations of consumer protection (Shafqat et. al.,2019). Furthermore, failure to comply with the established rules regarding consumer protection may adversely affect the performance of the company. As a result, Fresh N Fruity Company has established strategies to ensure strict observance of the existing regulations regarding consumer protection. For instance, the company has implemented a communication process amidst its employees regarding the awareness of the consumer protection law in the company’s operations.
Risks Associated with Information System
About the information system, the information system may fail to operate effectively, thus minimize the company's business performance associated with the non-alcoholic beverage (Tom,2018). Therefore, Fresh N’ Fruity Company is aiming to establish ICT solutions as well as platforms to increase the quality of the business while minimizing the risks related to the company's information system.
Risks Related to Environmental Issues
Based on the increased interest regarding marine pollution, which is influenced by plastics, as well as changes in waste plastic distribution, the challenge related to plastic bottles, is prevalently receiving considerable attention (Smith et. al.,2017). Besides, if the Fresh N’ Fruity Company is unable to react to these issues relevantly, the company's performance concerning the non-alcoholic beverages may be adversely affected. As a result, the company is heavily investing in manufacturing recyclable plastic containers to minimize marine pollution effectively.
Non-Alcoholic Beverage Company SWOT Analysis
Fresh N Fruity SWOT Analysis Matrix
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Strengths |
Weaknesses |
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The steady growth of the company's beverage segment: There is a steady growth of the company’s beverage segment The more significant potential of the company's niche market: There is more considerable potential of the company's niche market due to the increasing demand for juices based on health awareness amidst customers |
High competition of the company's industry segment: There is a high competition of the company's industry segment since a more significant number of companies are focused on producing functional beverages. High product quality maintenance costs: It will be very challenging for the company to produce and effectively maintain the quality of its product since it is a start-up business. |
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Opportunities |
Threats |
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Increased demand for the non-carbonated juice drink: There is increased demand for the non-carbonated juice drink, which grants the Fresh Fruit Juice Company a viable chance to embrace Availability of the niche markets associated with the company's beverage segment: There is the availability of niche markets, which gives the company a viable business opportunity to invest. |
High costs of displacing Pepsico, Limited, which is a market leader: The company is exposed to a threat of incurring high costs in replacing the market leader. Vast exposure to external forces in the global market: The company is significantly exposed to external forces such as political instability and currency fluctuations, which are encountered in the worldwide market. |
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Cornelsen, L., Mytton, O. T., Adams, J., Gasparrini, A., Iskander, D., Knai, C., ... & White, M. (2017). Change in non-alcoholic beverage sales following a 10-pence levy on sugar-sweetened beverages within a national chain of restaurants in the UK: interrupted time series analysis of a natural experiment. J Epidemiol Community Health, 71(11), 1107-1112.
David, F. R., David, F. R., & David, M. E. (2016). BENEFITS, CHARACTERISTICS, COMPONENTS, AND EXAMPLES OF CUSTOMER-ORIENTED MISSION STATEMENTS. International Journal of Business, Marketing, & Decision Science, 9(1).
Hagemann, M. N., Bogner, K., Marchioni, E., & Braun, S. (2016). Chances for dry-hopped non-alcoholic beverages? Part 1: Concept and market prospects. Brewing Science, 69, 50-55.
Melacini, M., Perotti, S., Rasini, M., & Tappia, E. (2018). E-fulfilment and distribution in omni-channel retailing: a systematic literature review. International Journal of Physical Distribution & Logistics Management.
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Shafqat, A., Welo, T., Oehmen, J., Willumsen, P., & Wied, M. (2019). Resilience in Product Design and Development Processes: A Risk Management Viewpoint. Procedia CIRP, 84, 412-418.
Smith, A. D., Fildes, A., Forwood, S., Cooke, L., & Llewellyn, C. (2017). The individual environment, not the family is the most important influence on preferences for common non-alcoholic beverages in adolescence. Scientific reports, 7(1), 1-10.
Tom, M. (2018). Risk Mitigation Strategies in Information Systems Continuity Plans for Public Institutions: The case if Industrial Development Zones (IDZs) (Doctoral dissertation, University of Cape Town).
Vercammen, K. A., Koma, J. W., & Bleich, S. N. (2019). Trends in energy drink consumption among US adolescents and adults, 2003–2016. American journal of preventive medicine, 56(6), 827-833.
Walia, K. (2019). Global Malt Beverage Market Size, Share, Trends| Industry Report, 2026.
