Part 2: Business Plan – Draft

Running Head: KISMAT SMOOTIES COMPANY

7

KISMAT SMOOTIES COMPANY

Company Description and SWOT analysis

Regina Crews

Strayer University

BUS 599

Prof. Andrea Banto and Prof. Adrian Allen

January 22, 2019

Question1: NAB company description

My non-alcoholic beverage company is called Kismat Smoothies Company. I decided to name it Kismat because the word Kismet means Fate. The company's central significance is to produce healthy drinks that satisfy the needs of the consumers. The primary products to be provided by Kismat Company are strawberry, banana, avocados, and orange, raspberry, mango, apple, carrot, and honey smoothies.

Question 2: Mission statement of the company

The company's mission statement will be: “To energize the people's body and mind by motivating happiness and cheerfulness through our brand as we create a difference.” The vision of the company is: To provide a portfolio of drinks brands that satisfy the needs and desires of people. I have chosen this mission statement to ensure that the Kismat Company's brands always focus on pleasing and fulfilling the expectations of the consumer as well as cheer them up as they perform their daily activities.

Question 3: Reasons for choosing this business

The primary reasons for choosing the Kismat Smoothies Company are; one the production of the company brands is simple since the raw materials of the company are easily found, and the products are healthy. The other reason is that the products produced can be substituted as a meal or snack. The third reason is that the products are quick portable and easy to make. The Kismat Smoothies recipes are endless and can be made anywhere with the right tools and ingredients. The Kismat smoothies industry provides its customers with healthier nourishment, assortment, and convenience in their beverages.

Question 4: The best strategic position for the company

Kismat Company main priority is to be the leading healthy beverage firm in the United States. For the company to attain this goal, the company has come up with a tactical location that highlights; making products with fruits grown locally, individually, specialized alternatives and assortments. The base of the Kismat's strategic position of ease is on an evaluation of industry trends, the target population, the production environment and the company strengths (Lewis-Williams, 2016).

The intended consumers are in search of drinks and meals that are healthy. The market is growing and becoming stronger as the consumers are searching for quick and original beverage options. There are various competitors all over the USA. While none of the competitors provide smoothies to-go kits or a drive-through option, this affords the opportunity to fulfil a need in our market (Cardozo, 2018).

Question 5: Distribution channels of the company’s products

Kismat Company will be online based; the consumers will be able to purchase the products of our company from the comfort of their homes. The company will open several branches all over the counties of the United States (Henley & Doss, 2016). The company's products will be available in restaurants and the Kismat stores. The company will hire several resellers and distributors in every county. The company will pay the employees through commissions of the number of products that they sell. Due to the company's financial shortcoming, we will advertise our company through the internet and present it to several investors as we ask them to invest in this upcoming company (Rees, 2017).

Question 6: Plans to mitigate the business’s risks

Various challenges are facing the Smoothie business which includes workplace hazards, food inventory, equipment costs, and business fluctuations. The company will require workers to prepare the ingredients for blending. Nevertheless, the blenders cannot mash the whole pieces of fruits. Therefore the employees will be required using sharp objects to cut these fruits which can result in injuries no matter the working experience. When the worker is injured, you will need replacements and compensations which add the expenses of production. The other risk is the equipment costs; the smoothie business requires expensive equipment such as blenders, refrigerators, and freezers (Chhabra.et al, 2016). These machines use a lot of electricity as they operate which increases the electricity bills and the costs of operation. The ingredients; fruits, milk, yogurt used in this business have a short shelf life which requires that the company sell the products with a week or two at most.

Moreover, the production of smoothies requires the producers to use small parts of the fruits especially for the cocktails which imply that the left elements should be stored properly and used soonest. There are variations in the business seasons. During the low seasons, the business may incur a lot of losses because the purchase is slow.

Kismat Co has come up with several ways to mitigate these risks. The company will ensure that the workers in the production docket work in the shift to avoid tiresomeness which is a primary reason for most of the workplace hazards. The company will reduce the equipment costs by buying the high-quality equipment which is longstanding and is energy saving. The basing of the company on the internet will help in estimating monthly business fluctuations to make sure that the company produces the probable products that have a high likelihood of being bought (Berger.et al,2017). However, there will be quick productions of needed products. The introduction of a home-delivery system will give the company some time to make the required outcomes which will ensure that the company does not incur a lot of losses.

Question 7: Swot analysis for Kismat smoothies Co

The strengths of the Kismat Smoothies Company are;

· The company is the first of its kind to be based national wide. This company will attract a new healthy market for people who are looking forward to reducing their weights.

· The company will be providing quick and friendly services which will encourage more consumers to buy its products. The prices of the products from Kismat smoothies will be affordable to all consumers who will present an opportunity for all people to try out the products from our company no matter their income or age.

· The employees that will be recruited by this company will be highly functioning, confident and friendly people who will significantly promote the sales of the company.

· Kismat smoothies will make its products from organic components; thus they will be of high quality in the direction of ensuring the health of the consumers.

The weaknesses of the Smoothie business include;

· The business will take a lot of time to start because a lot of capital is needed. The company is very costly to set up and run with the products and staff, and the new staff members need to be recruited to ensure that they are productive and

· There is a shortcoming of going into an already existing market.

· The new staff will be very stressed in starting this business.

· The company will not have many outlets which will limit people to knowing the industry and the products.

The Kismat Smoothies have various opportunities which include;

· Bringing healthy drinks to the United States which will help many people reach the recommended number of common fruits and vegetables' servings.

· The company will create job opportunities for many Americas who are unemployed.

· The company will be moving with the lifestyle and social changes which will encourage more people in buying these products.

· The company lies in a diversification field. It can diversify its products to produce more healthier and improved products.

The company's threats are;

· The fluctuations in the business during seasons which could result in losses.

· Changes in weather lead to low purchases of the company’s products.

· There is lack of skilled employees who are quick and friendly to the consumers as well as

· The cost of purchasing equipment is very high which implies if the equipment is mishandled, the company will increase its cost of production by purchasing others. This could lead to increase in prices of the products.

References

Berger, L. K., Fendrich, M., Chen, H. Y., Arria, A. M., & Cisler, R. A. (2017). Sociodemographic correlates of energy drink consumption with and without alcohol: results of a community survey. Addictive Behaviors, 36(5), 516-519.

Cardozo, M. (2018). Specialty smoothie bar business plan (Doctoral dissertation, California State University, Northridge)

Chhabra-MBM, A., Chandrasekaran-MBM, M. V., Chen-MBM, Q., Abidi-MBM, R., Wang-MIM, X. I., & Akpaka-MIM, M. (2016). Marketing Analysis and Strategies for Innocent Juices, Academic Session 2015-2016.

Henley, R., & Doss, A. (2016). B–TO–B, TECHNOLOGY COMMERCIALIZATION & NEW PRODUCT DEVELOPMENT.ADVANCES IN MARKETING, 111.

Lewis-Williams, D. (2016). An evaluation of the feasibility of setting up a juice and smoothie bar in Mumbles (Doctoral dissertation, Cardiff Metropolitan University).

Rees, T. J. (2017). An evaluation of the potential of establishing a free smoothie business in the Cardiff region (Doctoral dissertation, Cardiff Metropolitan University)