Operation, Technology, and Management Plan (with Financials)

Company Description and SWOT Analysis

LaShondra Jackson

Dr. Andrea Banto

Strategic Management

July 21, 2019

Company Name and its Significance

A company name should be distinctive, extendable, and easy to identify and pronounce, and also provide an idea of the products offered by the company (Wheelen, Hunger, Hoffman & Bamford, 2017). The company name which I have chosen is KoolSprings Water Company. The significance of the name KoolSprings Water Company is that it gives an identity of the company and what it will do for business. The company will be focused on providing drinking water to the market and therefore choosing the name KoolSprings Water Company is ideal for the business. The name is also self explanatory of what the company activities are and therefore it is important because customers will be able to easily identify it.

Beverage to be produced

The company will be packaging non-alcoholic beverage which is bottled water for its customers. The product is ideal for the company to produce because it has a ready market as customers buy drinking water each and every time. The key ingredient for the product is simply water. Most people prefer pure bottled drinking water without any added ingredients and this is the main product to be packaged. Also there will be vitamin bottled water where the pure drinking water will be added some flavors to it. The flavors which will be added are lemonade and mixed berries which will include strawberries, blueberries and raspberries. Lemonade flavor is one of the most preferred water products during the summer period while mixed berries water is one of the well balanced water flavors which can be produced.

Company’s Mission Statement

A mission statement is a brief statement of why the company exists to do. It will define the values of the company, culture, plan, essential goals and also ethics (Wheelen, Hunger, Hoffman & Bamford, 2017). The mission statement of the company is “At KoolSprings Water Company, our mission is to refresh lives by providing efficient and reliable products which meet the customer standards as we strive to be the world leader in offering pure bottled drinking water”.

Trends in Non-alcoholic Industry

In 2019, consumer wellness and health has increased which has created a lot of impact in the beverage industry at large. Studies by UCL indicate that 36% of people aged between 16-24 years are now abstaining from alcohol ("More young people abstaining from alcohol, and others drinking less", 2019). Beverage companies therefore are now tasked with developing new products which are not only non-alcoholic but which are in match with the current trends of health and wellness of the consumers. The trends include:

Functionality

Non-alcoholic industry has recorded an increase in new products which come with functional benefits. Customers require products which will be of benefit to them in terms of their health and wellness. The main product for KoolSprings Water Company is pure drinking water which is one of the basic needs our bodies need to remain healthy. With consumers being health conscious, water has been highly recommended and this is a major boost for the company.

Personalization

Consumers have the increasing desire for products which they can personalize with as they focus with their path of wellness and health. This demands that companies in the non-alcoholic beverage industry to be innovative in coming up with products which consumers can personalize with. KoolSprings Company has developed vitamin water with added flavors which are lemonade and mixed berries. The flavors have the natural taste which will make consumers personalize with the products.

Alcohol- free alternatives

The consumption of alcohol is reported to have decreased by 1.6% in the year 2018 following a survey by IWSR ("Worldwide Alcohol Consumption Declines -1.6% – IWSR", 2019). This happened because consumers have decided to lower their alcohol intake and focus on their health hence increasing the demand for non-alcoholic beverages. The company is therefore going to benefit from the low alcohol intake which will make it grow fast as there is a ready market for its products.

Sustainability

Consumers have become very conscious on the impact they are creating on the environment. Sustainability is one of the important aspects that have impacted the beverage industry at large. Recently, beverage companies aim at making water and soft-drinks packaging to be made of 100% recyclable materials in order to reduce plastic waste and the impact they create on the environment (Storey, 2010). This is also a goal for KoolSprings Water Company because it is in the non-alcoholic beverage industry and it focuses on its consumers who are very environmental conscious and require less plastic waste to the environment.

Strategic Position

KoolSprings Water Company strategic position is to have a key focus on convenience of the products to the consumers. It will have its bottled water products in both large and retail stores to ensure availability of the products to consumers because they are essential in their daily lives and also to make them easily reachable. Also branding is another key focus for the product to be easily differentiated from those of the competitors as they all will be placed beside each other.

Overview of the Distribution Channel

A company may have the best products in the market but they will be of no importance if the consumers do not get them where they require them. The best distribution channel is the one that satisfies the customers need by making the products available. The company will use both direct and indirect distribution channels where the products will be made available through directly distributing them to the consumers or the use of intermediaries such as wholesalers then retailers. The rationale for using both distribution channels is that the product is required by everyone and there are occasions where the company can sell directly to the consumers like during sports events or even use the intermediaries to supply them in convenience stores, supermarkets, clubs, gym, or even restaurants.

Risks Facing the Company

Regulatory risk is the first risk which the company faces. It is required to ensure quality of its products in accordance to the laid down consumer protection regulations. They include standardized procedures, safety of the products and testing among others. The second risk is prominent ingredient labeling where food and beverage manufactures have to label their ingredients in a visible manner. The third risk is safety issues which are associated with the products. Like the vitamin water contains high percentage of water which is reach in minerals and other added flavors and can be attractive to environmental microbes. KoolSprings Company can mitigate the risks by ensuring that it follows the required consumer protection regulation by offering quality and standardized products which are safe for consumption.

SWOT Analysis

SWOT analysis focuses on the strengths, weaknesses, opportunities and threats affecting a company both externally and internally. The current and future position of the company has to be researched in order to develop a good SWOT analysis. SWOT analysis is conducted in order for the company to build on the strengths, minimize the weaknesses, grab the opportunities and work on the threats (Gürel & Tat, 2017).

References

Gürel, E., & Tat, M. (2017). SWOT analysis: A theoretical review. Journal of International Social Research, 10(51).

Storey, M. (2010). The shifting beverage landscape. Physiology & behavior, 100(1), 10-14.