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In the first place, it is vital to describe all costs associated with organizing key operating processes. Currently, it has two EDGE INCORPORATED Mixer Beverage Filling Machines ($57,000), two Accutek AccuSnap Capper Bottling machines ($19,200), four Vehicles ($40,000), three computers ($1,200), and graphic software ($750). As for inventory, it currently has glass bottles ($33,000), labels ($840), metal caps ($300), cardboard cartons ($500), EDGE energy drink-ingredients ($600). Thus, to reach its desired goals, the company will have to start purchasing additional equipment during the first year, as it will be the most effective.
For example, by the end of the first year (some at the beginning), it has to purchase two more EDGE INCORPORATED Mixer Beverage Filling Machines ($57,000), two Accutek AccuSnap Capper Bottling machines ($19,200), refrigerators ($40,000), and ERP and CRM software ($1,000) to control inventory. Thus, for the first year, it would lease labeling machinery ($450 per month) and printers ($500 per month), but after one year, it would purchase them (labeling machinery – $40,000 and printers – $50,000) due to the cost-effectiveness. Purchasing facilities is not required but for all utilities, the monthly cost will be $2,000, and miscellaneous expenses such as phone will account for $1,000 per month. The total costs for the employees would be approximately $30,000 a month while the company would also outsource marketing specialists and accountants.
As for strategies, the company will organize production by itself since it wants to control the quality of its drinks and has all required equipment to complete this process. For the similar purposes, it would start buying equipment during the first year, and this method is cost-effective. Thus, to enhance quality control and monitor inventory, it would be rational to organize random quality checks, create quality standards, and purchase ERP software while the supplies would come from local farms, and the goods would be sold at the location of the production. A combination of these factors will offer competitive advantages such as fast delivery and high quality of the products. Thus, to overcome the challenges of the market, the company will constantly conduct market research (surveys, questionnaires, and interviews) and develop new product lines by organizing focus groups and releasing demos. It will contribute to the development of new beverages in future and help mitigate risks.
The technology plan is another essential element of any business strategy since it depicts the key software and hardware instruments that will be required to reach organizational goals and objectives and become customer-centered (Abrams, 2014). In this instance, it will not only offer a profound understanding of the necessary technological equipment but also describe professionals to ensure the sufficient functioning of different systems (Abrams, 2014). As it was mentioned earlier, the company would need software such as ERP and CRM ($1,000) during the second year and, it might be compulsory to purchase graphic software ($750) again. As for hardware, it currently has two computers and no additional purchases will be needed, and relying on this strategy is highly cost-effective for the start-up business. For telecommunication, it will have to pay $100 for the Internet and phone lines per month. In this case, it will use different social media to communicate with customers successfully, take into account their needs when designing new products, develop a client-focused brand image, and increase market share and recognition.
Speaking of employees, the only IT specialist affordable to hire is Stephen Job with 10$ per hour and 20 hours per week with a total monthly salary of $800. This professional will be responsible for maintaining ERP that will be used to register changes in inventory and ensuring that the information regarding personnel is recorded correctly (Kapp, Latham, & Ford-Latham, 2016). Along with that, Google Analytics and CRM may be utilized to assess the effectiveness of communication with the customers (Goldernberg, 2015). At the same time, due to the company’s active focus on social media, it will be rational to outsource professionals, who will be able to maintain website and maximize the effectiveness of SEO, as these procedures assure the effective usage of keywords and its appearance among the first results of Google Search (Enge, Spencer, Fishkin, & Stricchiola, 2012). The costs for the first year will be $5,200 for website development and maintenance while web design, social media specialists, SEO professional, and costs for online marketing will account for $1,000, $120,000, $4,000, and $18,000 respectively per year. Nonetheless, due to the seasonality of the market, these costs will vary (for more information, please, refer to marketing budget section). Overall, it could be said that the technology plan entirely complies with key values, corporate goals, and mission statement of the company.
Management & Organization
It is widely known that organizational structure is of paramount importance for every business entity. In the first place, it assists in distributing tasks effectively, ensuring corporate integrity, and proposing the most appropriate hierarchy (Child, 2015). Nonetheless, to establish a foundation for discussion, it is vital to outline management plan, and it will include key executives and employees, board members and advisors, and its structure and style (Abrams, 2014). In this instance, I will be the CEO of the company and receive no salary for the first six months. The main employees are Stephen Job (computer expert) and Melinda Cates (EDGE Organic Energy Drink Creator & Master Mixer) with the monthly salaries of $800 and $1000 respectively. As for advisors, they are represented by Ian Glass, who volunteered to help with the project, and Mary Cates with $10,000 annual salary. For other activities, the company tends to outsource a diversity of services while for the future, it plans to hire a production line foreman, projection line workforce, and maintenance employees by the end of the second year of operations. Overall, Figure 1 displays the overall hierarchy of the company, and it could be said that it is rather simple since the firm is at the start of its operations while it is also dependent on the decisions of the investors.
Apart from the well-established managerial structure, it is essential to rely on the concepts of leadership and managerial style, as they will define the corporate culture of the enterprise and help it target at integrity to reach organizational objectives (Rees & Porter, 2015). It could be said that the management cherishes collaboration with dissimilar levels of subordination, as the key goal of the company is its rapid growth and expansion. Apart from different positons in the hierarchy, all employees are treated equally. The corporate culture and teamwork are reflected in the company’s spending for various events and entertaining activities since these approaches assist the members of the team in feeling like a part of a small business community.
Abrams, R. (2014). Successful business plan: Secrets and strategies. Palo Alto, CA: PlanningShop.
Child, J. (2015). Organization: contemporary principles and practices. Hoboken, NJ: John Wiley & Sons.
Enge, E., Spencer, S., Fishkin, R., & Stricchiola, J. (2012). The art of SEO: Mastering search engine optimization. Sebastopol, CA: O’Reilly Media, Inc.
Goldernberg, B. (2015). The definitive guide to social CRM: Maximizing customer relationships social media to market insights, customers, and profits. Upper Saddle River, NJ: Pearson Education.
Kapp, K., Latham, W., & Ford-Latham, H. (2016). Integrated learning for ERP success: A learning requirements planning approach. Boca Raton, FL: CRC Press.
Rees, D., & Porter, C. (2015). Skills of management and leadership: Managing people in organizations. New York, NY: Palgrave McMillan.