homework

Bus 599: Strategic Management

October 20, 2018

Revised Company Name and Its Significance

A created non-alcoholic beverage company was initially called B-Live Refreshments. However, it seems to be more appropriate to call it 3F Refreshments. This name reveals the intention to provide clients with Fresh Farm Fruit juices. This connection can be revealed in promotion so that the targeted population realizes it and starts recognizing the brand easily. It is better to use the name 3F Refreshments than 3F Juices because the company may start providing not only juices but also other refreshing beverages when it decides to develop and expand. The customers may be misled by the name 3F Juices, and company’s competitiveness and revenue will be affected adversely.

Revised Mission Statement and Rationale

The mission statement developed for 3F Refreshments is “Provide fresh farm fruit juices directly from the farms to help clients manage healthy lifestyles and protect nature”. It is a useful part of a successful business plan since it provides company’s employees with an opportunity to keep to the identified path. While dealing with various operations and facing numerous issues, they may start focusing only on short-term goals. However, the existence of a clear mission statement ensures that they remember the major purpose of the organization and align all operations with it. In addition to that, it allows clients understand what they are going to receive from 3F Refreshments. This mission statement emphasizes what the company does and why it is advantageous for people to use its products.

Trends in the Non-Alcoholic Beverage Industry

The non-alcoholic beverage industry develops significantly every year since the representatives of the general public purchase its products instead of drinking water they have at home. As a result, market revenue has increased by about $10 billion between 2014 and 2015 (Grand View Research, 2018). Moreover, it continues to grow with the course of time. Such tendency proves that it is advantageous to work within this industry.

The majority of clients prefer buying carbonated soft drinks since they are rather cheap and sweet. There is also a wide range of tastes that can be selected, which attracts people. However, recent changes in customers’ worldview encourages them to manage healthy lifestyles and practice environmentally friendly activities. In view of this, the amount of fruit beverages bought in the USA increases significantly. This type of product has a great potential to satisfy the emerged needs of the new enlarged market by meeting its interests. Moreover, the number of competitors who provide similar products is more limited than those who offer soft drinks. This means that 3F Refreshments has good changes to be competitive. Finally, fruit beverages are appropriate for diverse populations. While soft drinks are rarely brought for little children and by the elderly and sport drinks are preferred only by those whose lives are full of physical activity, juices attract various people.

Strategic Position

To manage market penetration, 3F Refreshments will use value-based positioning that emphasizes valuable characteristics of the developed products, in particular, quality. The company will position itself as the provider of fresh fruit juices directly from the farms with no additives or preservatives in recyclable packing, which is both healthy and environmentally friendly. Other types of non-alcoholic beverages are typically unhealthy or do not focus on the environment. Hence, the selected strategic positioning is the best one.

Company’s Distribution Channels

Provided products will be distributed to grocery stores and restaurants. Indirect distributors will be used since they provide an opportunity to reach the greatest amount of clients. In addition to that, the company can focus only on the production instead of dealing with sales. Additionally, direct distributors will be needed to sell products in 3F Refreshments’ stores.

Types of Risks and Their Mitigation

The business may deal with 3 major types of risk:

· Regulation. The production of juice requires constant analysis that ensure the quality of the product. Moreover, packages should be good enough to ensure product’s safety. Increased attention should be paid to the temperature of this beverage. To overcome possible challenges, the company should follow guidance documents and hire professionals who control all operations.

· Competition. Different companies offer juices and 3F Refreshments may be unable to cope with this competition. Therefore, it needs to differentiate its product, emphasizing its uniqueness and quality.

· Operations. If a product is accidentally spoiled during production, the company will face great loses. Its reputation can be affected if juice reaches clients. Assessments should be managed at different steps of production to ensure that no mistakes are observed.

SWOT Analysis

· Strengths: the selected type of beverage has less competitors than soft drinks. It aligns with people’s willingness to manage healthy lifestyles and be environmentally friendly since it does not include any additives or preservatives and it is placed in a recyclable package. Company’s juices are unique since they are blended with coconut. In addition, the organization owns shops.

· Weaknesses: similar products are offered by competitors. Brand is yet unknown. Sales have to be high because juice can spoil quickly and it cannot be stored for a long time.

· Opportunities: it is possible to offer new flavors, adjusting juice to customer’s preferences. Advertising can make the company well-known and increase purchases. Purchase offers and cross-training opportunities ensure that employees can cope with their duties effectively and clients are interested in buying more items.

· Threats: more competitors can enter the market. Moreover, clients may change their interests and start buying other products or switching to other vendors.

Reference

Grand View Research. (2018). Nonalcoholic beverage market analysis by product. Retrieved from https://www.grandviewresearch.com/industry-analysis/nonalcoholic-beverage-market