Assignment 4: Business Plan--Final

Operations, Technology, and Management Plan

Gregory Finney

Strayer University

BUS 599

Dr. Andrea Banto and Dr. Cynthia Parmenter

November 21, 2019

Operation, Technology, and Management Plan

This section discusses Fizzy Bottles beverage’s operation, management, and technological plan. It also discusses the organization’s ethics and corporate social responsibility. 

Operations Plan

           Fizzy Beverages produces a line of high-quality non-alcoholic beverages aimed to promote customers’ healthy lifestyles without compromising the taste that most users desire. The company has bought a production facility on ABC Lane, measuring 1,000 square foot including a 0.5-acre parking space. Nearly 85 percent of the facility will be used for production purposes. To manufacture quality non-alcoholic energy drinks, the company will need two non-alcoholic beverage mixers, beverage filling machines, which will cost $28,500 each and can work for not less than five years. The equipment can mix a total of 400 gallons of beverages. The company will also require two Accutek AccuSnap bottling machines for capping bottles, with each costing $9,600. The machines are projected to last for five years. This equipment will help the organization in attaining its production target of 50,000 units a year in the next five years. 

           Four vehicles will be needed for delivery purposes. Each vehicle will cost $10,000 and have the ability to operate for five years. The firm will lease labeling machinery and one printer for $450 per month and $550 per month, respectively. The company will conduct maintenance activities after every three months. Also, the company will comply with various regulatory requirements. The company will also employ individuals with vast experience in non-alcoholic beverage operations to help realize the organization’s objectives and mission. These measures are aimed at ensuring that the company produces high-quality energy drinks for its target customers.

           Fizzy Beverages aims to have a competitive advantage in the non-alcoholic beverage industry. In this regard, the company will focus on customer perception as a competitive strategic position. According to Iyer et al. (2019), proper product position is what makes buyers choose a given product over other offerings. Fizzy Bottles product positioning strategy will highlight its products’ best features, which differentiate them from competitors’ offerings. Fizzy Bottles will concentrate on values that buyers will derive from using the company’s products. The company will use healthy ingredients, including non-sugar sweeteners, carbonated water, turmeric, vitamin B, and creatine, to produce high-quality energy drinks. As a result, the company’s products will have flavors that are currently unavailable in the United States to gain a competitive advantage in the market. 

           With regards to inventory management, the company will source raw materials from local suppliers to produce high quality and healthy non-alcoholic beverages yearly. The turnaround time between production and order receipt will be 24 hours. The organization will own four vehicles to distribute finished products to retail outlets in Dallas, Texas, and surrounding regions. Also, the company will use direct selling techniques and whole warehouses from where customers can buy the company’s products. The organization’s management will attend various seminars and workshops that discuss the latest trends, to stay abreast of current happenings in the market and industry. Also, management will subscribe to multiple magazines and newsletters that cover different topics related to the non-alcoholic beverage industry and market. 

           Based on effective research techniques, the company will invest in advanced production equipment. Also, the company conducted a market survey on consumer preferences to understand the best energy drink to produce. Nonetheless, the company does not have a research and development department which it intends to establish in the next three years to help with the innovation of the best production techniques. Currently, the company does not have new products in the pipeline apart from its current products. However, Fizzy Bottles will introduce new product lines in the future as part of its diversification plan. Also, the research department will play a key role in determining the best marketing techniques that comply with industry standards.

Technology Plan

           Technology will be an essential requirement for efficient business operations. Nikoloski (2014) asserts that a technology plan plays a significant role in driving a company’s success because it can help with efficiency improvement and cost reduction. Technology, for instance, can help with order tracking for easy inventory management. In light of this, Fizzy Bottles will need the necessary software, hardware, telecommunication, and personnel resources.

           Concerning software needs, the company will use advanced technology for its operational processes. The company will utilize computer programs for blending verification, product packaging, and graphic design — an inventory management application to help with order tracking and effective inventory storage practices to efficient operations. The company will also need information systems for human resource management and storage of records from suppliers. When it comes to hardware needs, the company will use 3 Apple Macintosh computers for data and information storing. The company will also lease a printer for photocopying and printing services. 

           Fizzy Bottles will use personal computers to communicate with suppliers and customers. In particular, the company will implement an email integration system that allows the company and customers to request supplies and orders, respectively. The company will use a computer telephony system for efficient communication with suppliers and customers, with the latter making orders via email service system. The use of technology is a significant step toward achieving creativity and innovation in the organization. Concerning personnel needs, Fizzy Bottles will hire a part-time computer expert to manage the company’s information technology needs and provide advice on the appropriate information system security needs. 

Management Plan

           Fizzy Bottles will use a hierarchical organization, with the owner Gregory Finney assuming the role of president and chief executive officer. Finney holds a Bachelors’ degree in Business Management from Richmond College and is currently pursuing a Masters’s degree in Business Administration from Strayer University. He will be responsible for the day to day operations of the company. As the business owner, Finney will also play a lead role in the marketing of business products. Additionally, the owner will manage the cleanliness of the facility and inventory. He will also create a work schedule for workers and ensure smooth communication with customers and suppliers. Moreover, the owner will strive to create a positive working environment that provides the comfortability of all employees and customers. As the president and chief executive officer of Fizzy Bottles, Gregory Finney will earn no salary for the first half of year 1. 

Advisors

           The company will seek the services of Jack Smith on a part-time basis on matters relating to information technology. Mr. Smith has ten years of working experience as a computer and information systems expert in various blue-chip organizations, including Apple Incorporation and Time Warner. He holds a Masters’ degree in information systems from Massachusetts Institute of Technology. As a computer expert, Mr. Smith will train workers on how to use different applications such as Microsoft Excel for efficient storage and dissemination of information. Also, the expert will train employees on how to use enterprise systems such as inventory management systems and human resource management systems. 

           Ian Gregor, a retired Coca Cola plant production foreman, will work volunteer as a production manager. Mr. Gregor recently retired with more than 30 years of experience in different positions, including a janitor and production foreman. He holds a Bachelor’s degree in Mechanical Engineering from George Washington University. He will help in organizing the company’s production activities as a non paid staff until the company manages to hire a production foreperson. 

           Mary Finney, Gregory Finney’s sister, will act as a paid consultant. She has more than 25 working experience as a senior manager with the Federal Trade Commission. They will provide legal advice on matters relating to fair business practices and consumer protection. She will ensure that the company’s recipe is shared within the entire state. The company will also hire an accountant on a part-time basis to prepare the company’s financial statement, advice of financing and investment decisions, as well as help with filing of the company’s taxes. In the future, the company will hire a production foreman, an accountant, a human resource manager, and a marketing officer.

Fizzy Bottle’s Organization Structure.

Ethics and Social Responsibility Plan

Corporate Citizenship

           Fizzy Bottles plans to safeguard and enhance the welfare of the community by working with state agencies to develop a program that will enable jobless people to earn a living by working in the company on a part-time basis. Once they pass through the program, they will acquire the essential skills needed to obtain permanent jobs. The company will also develop a school program that educates learners about making healthier choices. The program will also provide scholarships for learners who have taken the initiative to have a better lifestyle to sensitize the community on the benefits of making healthy choices. 

Environmental Protection

           The company will use a lot of water, which will affect the livelihoods of the surrounding community. In this regard, the company intends to harvest rainwater and use it for production purposes. Hence, the company will invest in tanks for water storage. Also, the company will require much electricity for operation. To overcome the problem, the company will invest in solar energy for production purposes. As an environmentally friendly company, Fizzy Bottles will use the latest technology for production purposes to reduce greenhouse gas emissions into the atmosphere. The company will adopt reuse and recycle principles to avoid environmental pollution. Most importantly, the company will work with relevant state departments to ensure that it complies with applicable environmental laws and regulations. 

Health Issues

           The energy drinks industry has witnessed significant growth in the last two decades, culminating in approximately $100 billion in a year industry in the United States alone. Energy drinks, often advertised as healthy drinks that people can use to boost their energy, concentration, and stamina. But numerous reviews show that they have significant health consequences. The health implications associated with non-alcoholic beverages are attributed to their high caffeine as well as sugar content. They range from substance abuse and aggression to mental health problems, increased blood pressure, stomachaches, and obesity (Al-Shaar et al., 2017). In this regard, Fizzy bottles will work with industry specialists and officers from the Food and Drug Agency to regulate sugar and caffeine content in its products. 

References

Al-Shaar, L., Vercammen, K., Lu, C., Richardson, S., Tamez, M., & Mattei, J. (2017). Health effects and public health concerns of energy drink consumption in the United States: a mini review. Frontiers in Public Health, 5(225), 1-6.

Iyer, P., Davari, A., Zolfagharian, M., & Paswan, A. (2019). Market orientation, positioning strategy, and brand performance. Industrial Marketing Management, 81, 16-29.

Nikoloski, K. (2014). The role of Information Technology in the Business Sector. International Journal of Science and Research (IJSR), 3(12), 303-309.

Chief Executive Officer

Information Technology Manager

Finance Manager

Production Manager

Marketing Manager

Human Resource Officer