Key Aspects of Operations

Kenry Beverage Company is located in New York City which is the most populated city in the United States. We have acquired a small office in one of our co-owners home which will serve us efficiently. Given that the owner of the house is away on many occasions, the basement will temporally serve as our warehouse for a start. Equipment such as refrigerators as well as mixers will fit in the basement, but eventually, we will move to a bigger facility as our company expands.Packaging equipment will also fit in there.

Cost and Time efficiencies:

As Kenry Beverage Company we prefer selling fresh juices to avoid using preservatives on our products. Huge orders should be made a day before to enable us to prepare enough beverages for them. Small orders will always be available. Once the drink is produced and packed, we refrigerate it a few hours before it is bough. This will make our drink refreshing especially during the summer season. In the beginning, manual labor will be more compared to the use of machines. Manual work will involve cleaning the fruits as well as preparing them for production.Packing the juice to the bottles and cups for retail sale will also include manual labor for a start.

Competitive Advantages:

Our competitive advantage is that our product is produced using local products which makes it free from chemicals. It is also environmentally friendly as we use suitable packing which can be reused or recycled. Our product is not only nutritious and refreshing but also fresh as well. We are also planning to rent a small shop at first instead of buying one to minimize the cost. The leased space is meant to increase sales.

Problems Addressed and Overcome:

The main challenges we are facing is the distribution of our product in the market since we are a company that is trying to establish itself in the concentrated industry. Machinery is a challenge since we don’t have enough equipment and vehicles to transport our product to various consumers. More equipment and aggressive marketing will enable us to overcome this challenge.

Our main competitive advantage is that we own our warehouse and some few offices. However, we are still trying to acquire one office at a strategic position to boost the sales of the company. Having our warehouse reduces the cost of rent as well as production. Through this, more money we will be used on production and distribution compare to the expenses. We will distribute our products locally as for now. We will also need to outsource funds from other areas to help increase production. We plan to partner with other local companies such as grocery stores to help us with the distribution of our beverage.

Establishing our company as one of the best beverage companies in New York will be quite challenging in this concentrated market. Our fruits are sourced from local farmers so as our company expands we will need to increase the number of our suppliers. We will increase the number of equipment such as mixers as the demand increases. This will save on time and energy as well as increase production.

Purchasing a bottling machine has been quite challenging due to the limited capital. Right now packaging is manually done, but eventually, we will acquire a bottling machine. The loan we will acquire from friends and family will help us purchase a bottling machine. Right now we are in the first phase, but that will be done in the second phase.

Our products are quite perishable, and for that reason, we will preserve them in the refrigerators after we have cleaned them to maintain quality sanitary standards. Our beverage is meant to promote good health, and for that reason, our hygienic practices should reflect the same. Human resources will be used to clean the fruits. During production, blending and mixing will take 10-20 minutes depending on the quantity of the juice ordered. Bottling and packaging depending on the amount of juice ordered.

Our distribution method is not bad for a start as we have one van to cater to our needs. As we grow, we plan to purchase more vans to increase distribution. We will also acquire more part-time employees to assist with the same. We also plan to replace human labor with machinery to save on time and money. This will be done eventually as we increase our sales and expand our company. This will take some time as it will require a large sum of investment.

The non-alcoholic beverage market is very complex, and it requires that we do research and development now and then. This will help us keep up with the competition that is rampant in the market. Apart from producing quality and healthy drink, we also plan to take part in conserving our environment. We will use the internet to ensure that we are informed about the current trends and changes in the market.

Describe your research and development activities and explain how they will contribute to the company.

Research and development are crucial to the success of any business. The non-alcoholic beverage market is very concentrated; hence it’s essential to understand and know the market. We will use the internet to check weekly updates on issues concerning weather and agriculture in the region. We will also be keen on laws and regulations that affect us to avoid tainting the name of our company with scandals. It is also n our interests to take advantage of local and national events to help us increase our ale. As time continues ad we establish ourselves, we will introduce new products in the market.

Technology Plan (1 – 2 pages)

Software needs

As a startup company, we plan to minimize costs. This then means that we will use the necessary software such as Microsoft Office Suite for our memos, word processing, and letterheads. We also plan to use cloud-based technology, for instance, Google Docswhich will help centralize and share our word documents, spreadsheets, and presentations online. Gmail will be used as our official company account.

Bitrix24 and a free CRM system will help us keep track of our customers, produce invoices and generate sales reports. Moreover, it will provide internet marketing options. As we grow as a company, we will add more user to the CRM system to help us delegate tasks. We are working on having our website which will run on a low-cost monthly service. The site is meant to help us support e-commerce and enable online purchasing once we have expanded the company. We will also run Twitter, Facebook and Instagram accounts which will keep us connected to our consumers. Feedback will be welcome in these platforms.

Hardware Needs:

Our hardware asset includes computers, cellphones, and printers. The co-directors of Kenry Beverage Company own the two computers and printers. We have one cell phone belonging to the office. We will also use our forms to ensure business runs smoothly. With time we will acquire more phones. Furthermore, we have machinery such as fridge and mixers that support the production of our product.

Telecommunications Needs:

We have the official Gmail account to be used the official email. We also have one office number since we only have one cell phone belonging to the office. The employees will also use their phone numbers to help in transactions for a start before we can acquire more cell phones.

Personnel Needs:

Apart from supporting the community during various events and maintaining the environment, we will offer internship opportunities to scholars as well as offer job opportunities once our company has picked in the market. We also encourage volunteers to help us spread health to our consumers by providing them with a healthy drink. As per now, our company cannot accommodate many workers as we are starting.

Management & Organization (1 – 2 pages)

Our management team consists of two people who will act as co-directors of the company. They will oversee department such as finance and marketing as well as the legal services. Furthermore, they will also need to oversee the research and development department which is essential in ensuring the growth of the company. One of the directors has a strong background in marketing having studied it as a course and worked in a firm where he headed a department in marketing. We will take advantage of his experience to ensure that the company’s growth curve is as it should be. He will also oversee the sales and growth of the company. He will take home a net salary of $52,158 annually as a starting salary.

The other co-director will oversee the production and shipping of our product. He will pocket a net salary of $22,850. He will be responsible for ensuring that supplies are brought in time and the product I shipped to the various consumers. The two directors will have their teams to help run their departments.

Company’s management hierarchy.

• CEO/Owner (operations, marketing, customer service, legal, finance, and R&D). Direct reports include interns and full-time employees fulfilling the following positions:
  • Two customer service reps/admin assistants – covering HR and payroll and order tracking as well
  • Two marketing/graphic design/social media specialists
  • Outsource for attorney/legal advice and financial advice as needed
• Sales Manager
  • Two field sales agents
• Purchasing/Production Manager oversees the following per-diem positions:
  • Ten warehouse crewmembers
  • Two delivery drivers

Kenry Beverage Company uses a democratic style of leadership to run the company. We allow casual but appropriate dressing in the workplace. Sales agent should, however, dress professionally as they represent the face of the company out there. As we expand the sales, human resource department will increase more workers depending on the workload available.

References

Eze, F. J. (2015). The Correlation between Business Location and Consumers Patronage: Implications for Business Policy Decisions. British Journal of Economics, Management & Trade, 8(2), 294-304.

Nikoloski, K. (2014). The role of information technology in the business sector. International Journal of Science and Research (IJSR, 3(12).

Sibanda, M. &. (2017). Influence of Information Technology on Organization Strategy. Foundations of Management, 1, 191-202.

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