Business Plan-Final

ORGANIC SMOOTHIES BUSINESS PLAN

Name

Institution

Company Description

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 that makes it appeal to health conscious individuals that in this case are cancer patients.

Mission statement

0Organic 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 that 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 that 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 that 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 etc. require a stable climate to meet the quality requirements for the company’s products.

The regulatory risks are fundamental because the FDA must determine the quality of ingredients 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. In 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 place 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 that affects the products’ ingredients and this may affect the company negatively.

Target Market

Identification of a target market is crucial to the any business since the business is developed to create a better focus in the market regarding energy drinks and thus the target market must be able to meet the specifications that have been outlined. The primary target market that will be considered in this case will include individuals above the age of ten with main focus on beverage where age limit at ten will be positive since individuals at the age of ten can choose what they want even though their purchasing power might be low. The broader focus on the target market is aimed at improving the overall operational environment where the company can have high profit margins if its strategies are successful. The town of Annapolis City is found in Maryland that has other smaller towns surrounding it and closer states such as Washington and Virginia that will provide a better market for the company product. Annapolis city has a population of about 38,841 people and the median age of the population is 37 years that is within the target population. The population of the Annapolis city is made of more females that male and basing on the report from the Bureau of Statistics the breakdown of the population include 62.9% of the population being white followed by 24.2% African American citizens. The average income range is $8,426 with an average family size of 4 per household.

(Data Access and Dissemination Systems (DADS).

Company Competition

From the critical review of the company position within the market in relation to its performance, it is important to ensure that it adopts key strategies where it will be able to have a greater focus and engagement within the market especially when focusing at the level of engagement and competition posed by the competing firms. Creating a special target market is a crucial move that the company can consider to develop an entry point where it will be highly engaged in creating a significant focus on the underlying focus in the market. Market segmentation will ensure that there is a greater level focus on the different preferences of customers in the market and develop products that are responsive to the customer preferences. Exhausting a specific target market will provide a greater engagement in the market where the company will be able to adopt other significant strategies relating to business development strategies. The marketing campaigns need to be specific and attract attention of the target market where the customers can easily relate to the format developed (Luke, 2013).

Despite significant engagement within the global beverage industry, Coca cola over the years has been losing its market share to upcoming firms that have sought to exploit the loopholes that have been left based on a large customer base by coca cola. This means that Organic smoothies can still develop and become key player based on how they will be able to utilize the existing chances in the market. The high level of completion means that the company should be able to develop a clear understanding on the issues that are developed within organizational environment. Being able to capitalize on the spaces within the market will be crucial in improving the company engagement in the market. The recruitment of high skilled employees will ensure that there is a better organizational environment where company development will be based (Teitelbaum Michael, 2012).

Company Message

The company message will be highly engaged through the company slogan “Service at your pleasure.” This will create a better setting where the company will be able to market its services effectively. The company message is clearly developed to create a greater focus on the fundamental focus of the company within the market. Service at your pleasure at you pleasure will form the foundational focus on company service delivery which will be based on quality. The market segmentation will help in creating better focus and organizational engagement where it will be easier to incorporate positive measures in ensuring that every segmented market is highly engaged.

Marketing vehicles

Building a brand requires crucial focus on key underlying elements that can help in advancing the business development. Marketing vehicles that company choses dictates the level of success that a given organization can be able to get in the industry. Marketing vehicles connect the company to its market audience and thus effective marketing vehicles will lead to automatic success. The company will consider recruiting the services of a distribution agency in order to ensure that it remains highly engaged in the market before they can develop an internal distribution channel. The ordering of the company products will be done majorly through the company online platform while the orders will be made through the distribution agency that will be chosen. The marketing tactics that will be integrated will be based on the target market where social media engagement will be crucial as a well as mainstream media (ELLIS, 2013).

Ethics and social Responsibility

The company is highly engaged in incorporating positive focus within the industry as well as the social environment in which the company is operating. Ethic and social responsibility incorporates moral and positive focus on organizational wellbeing in ensuring that there exist a better working environment. Development of a better internal and external operational environment will be key to the overall development plan that the company has integrated in ensuring that it is successful. The company will focus on a number of social responsibilities to ensure that it is highly engaged within the market as well as the industry.

Job creation

Creation of equal employment opportunities for all will be a key focus by the company. The recruitment and selection strategy that will be adopted by the company will focus on the underlying laws and regulation such as equal employment opportunity in ensuring that individuals have equal chances of being recruited to form part of the company employees. It will also incorporate diversity in ensuring that the company does not focus only on a certain type of employees but have a greater focus on the societal image to improve company engagement (Byrd & Scott, 2014).

Fair and honest treatment of employees

The company will seek to have high level of employee focus within organizational environment in promoting positive development and wellbeing among employees. Making employees happy is one of the methods that are significantly developed to ensure that there is a high-level focus in the manner that the company operations will be handled. The company leadership will ensure that they put in place better strategies where all employees will be treated on the same scale based on issues being addressed. Dishonesty and unfair treatment to employees from the management or fellow employees will be treated with just focus on the company operational regulations and code of conduct.

Compliance

Compliance is a crucial aspect in business development and the company will maintain high-level focus in terms of compliance with the underlying issues in business. High level of compliance within organizational environment will ensure that there is a better operational environment where the company will be highly engaged in achieving its set objectives within the industry. Compliance issues are mainly related to regulations and operational legal aspects including the higher-level emphasis on the laws that protect employee’s rights within the company environment. High level of compliance is associated with success since a company that complies with various legislations that have been put in place is more likely to be successful through attracting competent employees. Compliance will be fundamental aspect which will ensure that there is a higher level focus within organizational context to create a desirable room where the company can make better development goals and achieve them (Barak, 2013).

Some of the laws that the company will seek to uphold include the family medical leave act where it will ensure that all employees are entitled to leave as well as additional benefit of a three week fully paid leave. It will also incorporate the sex discrimination act of 1984 in ensuring that there are no incidences of sex- based discrimination within the company operational environment. The equal pay act of the year 1963 will form the basis at which the compensation and benefits will be evaluated in ensuring that there are discrepancies in the payments made to all employees based on type of work done. The recruitment process that the company will adopt will be based on the equal employment opportunity act of 1972 and the fair labor standards act of 1938. The consideration of these laws within organizational environment will be crucial in creating better interaction platform among employees and the management since they will have a higher level focus on what needs to be done and how they should operate within organizational context as well as being company ambassadors in maintaining high level focus. This laws focus on protecting employees within an organization and thus the company will ensure total compliance (Byrd & Scott, 2014).

Workplace diversity and nondiscrimination

The company will put into focus a specific focus on an integrated operational framework where it will be possible to ensure that all employees within the organization are well engaged and adopt to positive values within organizational development. Employee demands and concerns will be handled effectively through a greater focus on organizational commitment among all employees. Any form of discrimination will not be encouraged within organizational context and stun measures will be put in place to ensure that any individual who violates the fundamental code of conduct within the organization is dealt with accordingly. Managing diversity will be a critical aspect within the organizational development and will seek to ensure that the company is well engaged with high-level focus and overall engagement where it would be possible to have a high level of focus within company operational environment. The company will significantly emphasis on workplace diversity to ensure that it is able to accommodate employees and relate with customers from diverse cultures. Thus, the organization is highly committed to improving the overall operational environment where diversity will play a key role in promoting positive development (Harper, 2017).

References

Barak, M. E. M. (2013). Managing diversity: Toward a globally inclusive workplace. Sage Publications.

Byrd, M. Y., & Scott, C. L. (Eds.). (2014). Diversity in the workforce: Current issues and emerging trends. Routledge.

Data Access and Dissemination Systems (DADS). (2010, October 05). American FactFinder - Community Facts. Retrieved November 24, 2017, from https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml

ELLIS, R. K. Action Plan for Sales Success. 67T+D 20–22 (2013).