BUS 599 Assignment 1

In this assignment, you will conduct a SWOT (Strength, Weakness, Opportunity, and Threat) analysis for the type of beverage you have selected, and for your company overall. As you work on the assignment, consider why you have chosen one type of non-alcoholic beverage over another and the reasons for that choice. As you complete your SWOT analysis, be sure to include external factors such as industry / market trends and competition, and internal factors such as your capabilities or abilities to reach certain market segments.

1. Create your revised NAB company name and explain its significance.

a. Company Name- Cate’s TLB

b. Target Audience— Middle Class, Health Conscious, Suburban Area

c. Rationale/Purpose- Money, Organic, Healthier, non-artificial flavors, flavorful beverages with simple ingredients that you can pronounce (homemade, her name, the beverages made)

d. Significance of the company- Homemade product, that sales tea and lemonade

2. Develop your revised company’s Mission Statement and provide a rationale for its components.

a. Missions Statement:

“Cates TLB provides our customers with high quality beverages, made with simple ingredients, at competitive prices. We produce our beverages with a professional quality team environment built on accountability, compassion and respect.”

3. Describe the trends in the non-alcoholic beverage industry, especially the specific type of beverage category you have chosen. Justify at least three (3) reasons why you have chosen this type of non-alcoholic beverage.

a. Hints: Research and outline beverage industry trends. Consider the size and growth rate of the industry overall and the specific beverage type you have chosen.

b. Some Trends Found

Healthy/natural

Specialization

Customer intimacy/experience

Do-it-yourself

c. 3 reasons chosen-- Flavorful potential for both, Trending towards natural health, Homemade

4. Choose one (1) strategic position from the course text (pp. 142–143) that you believe is the best strategic position for your company. Explain the approach you will use to implement this strategic position in order to distinguish your beverage from other non-alcoholic beverages.

· Value positioning?

· Quality positioning?

· Demographics-Related Positioning?

5. Provide an overview of your company’s distribution channels. Explain the manner in which your product will reach end users. Provide a rationale for your chosen method.

· Hints: For example, will you sell your beverage in grocery stores, restaurants, or sports venues? If so, describe the types of resellers and distributors who will sell to resellers and fulfill their orders. If you are attempting to sell direct-to-consumers, such as online via a monthly subscription, how will you manage warehousing / fulfillment / shipping?

· This company will be B to B (business to business)

6. Outline at least three (3) types of risks (including any regulatory risks) that your business faces. Describe your company’s plan to mitigate such risk.

· RISK

7. Develop a SWOT analysis for your NAB company using the SWOT matrix worksheet in the course text (p. 153 | SWOT: Strengths / Weaknesses / Opportunities / Threats)

SWOT ANALYSIS: Please Input in a SWOT TABLE and elaborate more

· STRENGTHS- high quality product, family owned, company culture, capital

· WEAKNESSES— market share/size/ (100miles), need investors, growing pains, legal/regulatory/insurance

· OPPORTUNITIES— 35 billion in market share avail., expanded geographically, consider IPO/Sell, work force expansion, portfolio expansion

· THREATS— No investors, legal/regulatory. Cash flow shortages, competition

----------------------------BELOW IS AN OVER OF THE GIVING COMPANY PORTFOLIO--------------------

Most information below has been changed above. The portfolio below should provide any additional information if needed to complete this assignment.

This is the compilation of Data, Notes, and Information that have been put together to create a Business Plan, along with Pro-forma Financial Statements, for a start-up company in the non-alcoholic beverage industry.

The goal of my business plan is twofold:

1 To help identify and outline all the issues I will need to address in starting this company.

2 To present to funders to help raise money to finance this company.

NAB Background:

Melinda Cates has been selling her NAB at County Fairs for the past 7 years for $2 a bottle. She sells an average of 10 Cardboard cartons each weekend a County Fair is open. From her calculations, it takes $.56 to make a bottle of NAB when she calculates all the NAB ingredients and the cost of the bottle and cap. Her rich uncle, Bill, just died and left her a small monetary inheritance. However, since he so enjoyed her homemade NAB, he also left her equipment to start a small NAB business. Additionally, her uncle left her a facility that will allow growth to start the business. It has the potential for expansion in order to meet larger sales goals for the future.

Melinda and I have been close, trusted friends for years. She knew I attended Strayer University and earned my MBA; so I agreed to assist her get the business up and running. I have agreed to put together a NAB Business Plan, and I have agreed to be the CEO/President of the company for at least the next five years.

NAB Today:

Parameters for New Company

Here are the parameters in which I must work.

 The business is a start-up: We are not yet in operation. We already have a “recipe” for a beverage, but we are not yet making sales at any significant level.

 Product: the only barrier is that it must be a non-alcoholic beverage (NAB). It is up to me to decide upon what type of non-alcoholic beverage I intend to make and market. It can be sold in individual sizes or wholesale.

 Market size. I will start marketing and selling the NAB in my geographical area within a 100-mile radius from my home address.

 Business size. I can grow the NAB business to any size in excess of one million dollars in revenue by year two. In other words, this cannot be intended to be a one- or two-person micro-business.

 I intend to raise money. I will be looking for funding, and I have already started with friends and family money. However, at some point, I will need funds from outside investors, either angels or venture capitalists, depending on how much I project, I need to raise or receive from a group of individual investors on Kickstarter.

 I intend to have employees and develop my own organizational hierarchy.

 I do not need to raise money for my personal financial support for the first six months. In other words, I do not need to draw a salary for myself for the first six months of projections. Annual salary will be $55,002 1st year; adjusted to $110,004 2nd year; finally adjusted to $165,008 for all remaining years in position.

---------------------------I’VE ALSO ATTACHED A TEMPLATE WHICH SHOULD MAKE IT EASIER TO INPUT INFORMATION----------------------------------------------------

General Company Description

What business will you be in? What will you do?

Mission Statement: Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason for being and their guiding principles. If you want to draft a mission statement, this is a good place to put it in the plan, followed by:

Company Goals and Objectives: Goals are destinations—where you want your business to be. Objectives are progress markers along the way to goal achievement. For example, a goal might be to have a healthy, successful company that is a leader in customer service and that has a loyal customer following. Objectives might be annual sales targets and some specific measures of customer satisfaction.

Business Philosophy: What is important to you in business?

To whom will you market your products? (State it briefly here—you will do a more thorough explanation in the Marketing Plan section).

Describe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?

Describe your most important company strengths and core competencies. What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

Legal form of ownership: Sole proprietor, Partnership, Corporation, Limited liability corporation (LLC)? Why have you selected this form?

Describe in depth your products or services (technical specifications, drawings, photos, sales brochures, and other bulky items belong in Appendices).

What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.

What are the pricing, fee, or leasing structures of your products or services?