Financials Revised

Company Description and SWOT Analysis

Student Name

Institutional Affiliation

Create your revised NAB company name and explain its significance.

Organic Smoothies a NAB company that deals in frozen drinks specifically, smoothies, milkshakes which are made from organic ingredients obtained from the local farmers. The company also offers take-away frozen yoghurts and smoothie ingredients. The significance of this name is hinged on the word organic which makes it appeal to health conscious individuals which in this case are cancer patients.

Mission statement

Organic Smoothies is a hypothetical frozen beverage company that promotes healthy eating and lifestyles by producing beverages made of organic ingredients obtained locally from farmers. Our mission is to create a healthy environment by providing delicious beverages that promote healthy lifestyle to our customers. The purpose is to ensure our customers attain a balanced diet which is nourished with nutrients packed to satisfaction. The company appreciates ingredients obtained from local farmers as a way of giving back to the society and promoting local farming. We strive to make the lives of our customers better by providing products that improve their health.

Trends in non-alcoholic beverage industry

The choice to establish a company within the smoothie industry is based on three reasons. The first reason is the nature of products produced within the industry. The beverages are healthy and therefore meets the health requirements for my target market; cancer patients. Secondly, smoothies can be used as a substitute to meals and lastly they are easy and quick to make. Given the healthy and delicious nature of the product unlike other snacks, the market share is expected grow to about thirteen percent in the next five years.

The snacks market is growing and the number of customers purchasing organic smoothies is going up. Research indicates that 56 percent of those who eat snack take smoothies. With the evolution of the snack industry, smoothies have created a split position within the industry to the extent of infiltrating the quick-service restaurants.

Strategic position for Organic Smoothies

Organic Smoothies is looking forward to being the leading beverage company in Washington, Virginia and Maryland. The achievement of this objective is based on the company’s strategic position which emphasizes on products whose ingredients are obtained from local farmers, individual specification and a professionally directed diet and menus. In this regard, Organic Smoothies position in the market is to evaluate the industry trends, target markets, the product environment, and the strength of the company.

Overview of Organic Smoothies distribution channels

Organic Smoothies uses a direct engagement with customers as the main distribution channel. The production is carried out within the selling stores and therefore no shipping of products to other stores for distribution. The only products the company distributed out of its primary store are smoothie-to-go kits and ice cream. Online orders from customers are managed within the production facility. Organic Smoothies will use the Fed Ex which has temperature- controlled systems to ensure the products reach the customers in good condition for consumption.

Risks faced by the company

Organic Smoothies Company faces three fundamental risks. These include product, competitive and regulatory risks. The company depends on local products from farmers and most of these products are perishable. These products include vegetables, hone and milk and these products depend on the stability of the climate. Bees as well survive on a stable environment. The additionally product needed to make the smoothies and milkshakes etc. also require a stable climate to meet the quality requirements for the company’s products.

The regulatory risks are fundamental because the quality of ingredients must be determined by the FDA otherwise they may pose detrimental effects to the consumers. The company faces a competitive risk from the region. However, the level of competition is not high to the extent of a saturated market. As a matter of fact, there is an additional market for other companies to tap into.

SWOT ANALYSIS

Strengths

The strength of the company lies on its use of organic ingredients, professionals, emphasis on healthy eating options, diverse menu choices, diverse target markets and a committed staff to achieving the goals and the objectives of the company. The above strengths places the company at the top of the Smoothies industry.

Weaknesses

The smoothie market is disintegrated and the Organic Company indicates no possibility of consolidating the market. The capability to compete effectively in then franchise business with established companies such as Jamba juice and Smoothie King. Unfortunately, the company lacks the knowledge of freezing procedures that are critical to the production of smoothies and milkshakes among other related products.

Opportunities

The company has opportunities such as the smoothie-to-go kits which is likely to result in significant revenues for the company. The market’s capital investment is low providing low barriers for the companies to expand (Kennedy, 2015). The company also has the opportunity to partner with other food stores to maximize its sales. Lastly, the opportunity to fully utilize online platforms for marketing and sales has not been fully exploited by the company.

Threats

The greatest threat to Organic Smoothies is competition. The proliferation of the smoothie market is significantly cutting down the company’s market share and the future is likely to be worse than it is now (Rush, 2015). Again, there is the threat of climate instability which affects the products’ ingredients and this may affect the company negatively.

References

Freeing Up Frozen Beverages. (2015). Convenience Store Decisions, 26(9), 46-50.

Global Smoothies Market to Reach $9.0 Billion by 2015, According to New Report by Global Industry Analysts, Inc. (2010). Retrieved from http://www.prweb.com/releases/smoothies_market/frozen_mix_smoothie/prweb3808804.htm on 10/19/2017

Kennedy, S. (2015). Sales rise for veggie juices, juice smoothies. Dairy Foods, 116(6), 20.

McCarthy, N. (2015). The World’s largest markets for organic products. Retrieved from http://www.statista.com/chart/3681/organic-retail-sales-value-by-country/ on 10/19/2017

Rush, S. (2015). Smoothies on the Rise. Restaurant Business, 80.

Statistics and facts on the juice and smoothie market in the U.S. (2015) Retrieved from http://www.statista.com/topics/1896/juice-and-smoothie-market/ on 10/19/2017

US Smoothies Market: Trends and Opportunities. (2007). Retrieved from http://www.researchandmarkets.com/reports/564552/us_smoothies_market_trends_and_opportunities on 10/19/2017