Business Draft: NAB Company Description, Strategic Position (Essay Sample)

Business Draft
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Company Description
Kesh Smoothie, a NAB company, offers milk shakes, smoothie and frozen drinks from fresh local ingredients. Some of the products offered include smoothies and frozen yoghurts. The company derives its name from the nickname of the founder and her wife. The name is a brand concept in the local market and is slowly becoming acceptable nationally. The company has the ability to mix a variety of flavors to make the frozen drink based on the customer’s preference. The flavors variety makes sure that the company product range is diverse and therefore making the market base limitless. The customers are jazzed up by the options available for them.
Mission Statement
Kesh Smoothies frozen food organization that encourages healthy living by drinking fresh drinks from ingredients offered by farm produce. The company’s mission is to improve lives through creating flavored organic drinks that include fruits, milks, juices and vegetables. By creation of a concoction frozen organic drinks, the customers will live healthy by provision of a variety of nutrients. It is an avenue through which the consumers can get a balanced diet through beverage drinks. At Kesh, we aim at using the ingredients from the produce of local farmers as a strategy to bring back to the society. Our company focuses at partnering with the society, the government and the employees. The products comprises of blend of localized ingredients. At the regional level, we strive to become a recognized brand by offering the best beverage options. The goal is to increase the annual profits and growth by clinging onto the brand recognition (Boutenko, V 2010).
Market Trends
In choosing Kesh Smoothie, I have three reasons. First and foremost, the drinks are healthy and therefore they promote healthy life style by the customers. Any person with a nutrition related health issue can drinks the smoothie instead of medicines. Secondly, the drinks can be substituted for a meal. The smoothie offers satisfaction and at the same times a variety of nutrients. A person who wants to stay healthy will choose to drink the smoothie instead of food. People working in a busy environment can opt carrying a cup of smoothie to work instead of a lunch box. This helps in saving the cost of buying food and also prevent consumers from indulging into the fast food culture. Thirdly, the smoothies are light and easy to make. The company has the right ingredients and the machines to make the products. Furthermore, the recipe list of the beverages is huge and the company can be in market for a long term. The current generation is always busy with school, work and other extra-curricular activities. It is thereby prudent for corporations to offer drinks that are easy to carry and at the same time healthy. Consumers in the non-alcoholic beverages want to get products that provide health nourishment and convenient to carry. The sugary sodas are slowly losing the market share to the sugarless and smoothies. Although the variety of drinks is promoting energy provision, satisfaction, fewer calories and nutrition, the smoothie and other frozen drinks offers the same but without having to add any additives (Seth, C. 2015).
Strategic Position
The company’s objective is to be the leading smoothies and frozen drink company in the region. For the achievement of this goal, the company has developed a strategic plan that will position the organization as the market leader.
* The products will be designed depending on the customers’ preference and selection.
* The ingredients for the drinks will be locally grown.
* The products will be dietician and chef inspired (David, F 2017).
In evaluation of Kesh Surprise strategic position, the company will focus on the following factors;
* Industry Trends
* The Target Market
* The Strengths
* The Product Environment
As a company in the non- alcoholic beverage, our target market is in the healthy drinks. The market is growing and as a company we will focus on being creative and fast in drink alternatives. Our customers include the people on weight loss programs and the one who aspire for healthy living. The competitors in industry do not provide a smoothie kit pack. Going on with this drive will attract more customers. The kit will be affordable since it will be made of locally produced ingredients. We anticipate tough competition from the large smoothie companies with already built mobility (Boutenko, V 2010).
Key Aspects of Operations
Kesh Smoothie is currently operating in a facility located outside the main town. A small office is located around the owner’s home where the start-up team will be operating. The company will hire a part of the owner’s basement to act as the storage of the raw materials to be used in the production of the smoothies. The basement will be temperature regulated to ensure that the products do not go bad. It is important that we plan that for the future since we will need larger space. Some of the equipment we need include large fridge, tanks for storing the drinks and packaging space for the cups and the cartons.
Cost and Time efficiencies:
Once the drinks have been prepared, it is important for storing it in a cool temperature room. The drinks can then be shifted depending on the consumers’ demand. A refrigerator will help in preserving the smoothie for several hours before the consumers can drink them. At start up, the company will need more manual labors for making the drinks. However, once the machines and equipment have been set, the process can be automated. The smoothie will be packed in cartoons before being shipped to the various destinations.
Competitive Advantages:
The company’s competitive advantages come from the fact that all the smoothies are made from local ingredients from the region’s farmers. Also, the packaging used helps in conserving the environment thus ensuring that the company is environmental friendly and fulfilling its social requirement. The mix of the smoothie has health advantage and help in nutrition adding to the consumers. We plan on constructing a facility that will reduce the operation costs. At Phase I of operations, the management plans on minimizing the operational costs by producing the drinks on the basis of the market demand. Although the raw materials are highly perishable, we will focus on ensuring that the supply chain flow is smooth to avoid any shortages or excesses (David, F 2017).
Problems Addressed and Overcome:
Some of the challenges that are expected in the course of operation include:
* Distribution challenge- once the drinks have been produced we will require a larger storage facility and refrigerators. Furthermore, we will need trucks and vans for distribution.
* Storage challenge- the products produced by the company are highly perishable. The storage materials should be working at every moment to avoid them from going bad. With large production, we will have to rent or hire more large storage facility (Baines, P 2017).
Competitive Advantage
Kesh Company has its own facility that helps in storing the products and preserving the drinks. This allows us to save on the costs and make more money available for research and development. All the products will be delivered locally so the distribution costs will be maintained at minimum. All the trucks are owned by the distribution team so it saves us the cost. We have established a distribution network that help on saving time. We plan to outsource the services of a distribution company once we hit the break-even point and the sales are beyond our limits. Operation scaling is our greatest challenge. Once the operations achieve optimality we will have to buy huge machines. We will be able to produce on large scale for less time.
Currently, we pack all the drinks but once we grow we will hire a packaging machines. We will borrow a loan from the local back for the investment. The loan will incur an interest cost of 3% per annum for 2 years. All the fruits are cleaned by our employees but cannot be stored for a long period. The small team helps in managing every inventory entering the company. Once the fruits are collected from the farmers, there are cleaned and stored in the refrigerator. The fruits will be blended depending on the demand of the consumers. The smoothie will be packed in disposable organic cups. If the consumers need any additive for the drinks, the employees will add on request. The distribution channels are sufficient for the current level of production. Once we enter in the second phase with a huge sales, we will buy a large storage facility and mixing machine. We, however, need a huge capital outlay for such investment (David, F 2017).
Research and Development Activities
Research and development is among the top list of our concern. The non-alcoholic beverage industry is quite competitive and to remain relevant in the industry it is important to keep up with the trends. Global competition is stiff but with the right development plan we will remain viable in the market. Our plan is to invest in the IT department to ensure that we are up to date with the latest trends. We are working with the local government to ensure that we operate within the rules and regulations set by the government. Also, the collaboration will help in updating us on the events and occasions. Such exposure and awareness will increase our overall sales. At the moment, our focus is on smoothie drinks so we will invest heavily on developing better drinks. We plan on adding more varieties to our current menu of smoothies (Baines, P 2017).
Technology Plan
Software Needs:
Kesh Smoothie is a start-up company that focuses on keeping the costs low but ensuring that the products offered are of ...