Operations, Technology, And Management Plan

Operations, Technology, and Management Plan
First Name Last Name
Strayer University
BUS 599
Prof. Andrea Banto and Afraa AlBahrani
October 15, 2018
Operations, Technology, and Management Plan
Operations Plan
NAB Inc. will use quality control systems to ensure that the quality of products is consistent. Our production capacity will depend on market demand for our products. Therefore, we plan to start small and grow the production capacity in tandem with the market demand. The purchasing and suppliers department will handle inventory management.
Given that NAB plans to grow production capacity, there will be a need to source suppliers who have the immense capacity and who can offer credit. This will eliminate the future need to change suppliers as production capacity grows. The company will use a direct-to-market distribution strategy where it will directly supply its products to retail supermarkets as this will allow direct contact with customers and cut the cost of intermediaries. As a result, the company’s products will be cheaper as compared to the competition. However, as the business grows, the company will also start using distributors and wholesalers to reach far-flung markets. We shall stay abreast with new development by investing in research and development (R&D) and studying the industry trends. Furthermore, we shall attend industry trade fairs.
Operations Plan Detailed
The non-alcoholic beverage company’s HR strategy is to employ experienced employees who have vast experience in the Food and Beverage industry. The personnel will be recruited based on a functional organizational hierarchy comprising of the president, vice-president and departmental managers who shall oversee the company’s operations. Buying a production facility will not work due to cash flow constraints, whereas outsourcing the entire production will not be safe, as it will expose the company’s business secrets to the competition. As a non-alcoholic beverage startup, the largest expense will be transitioning from a small batch prototype to a large-scale production facility. Given the high cost of assembling a production plant, fully equipped with bottling equipment, vast and refrigerators, NAB will prefer to rent an existing facility. Renting will help the company to size the demand before venturing into mass production. The cleaning of the production line will be done in-house.
Competitive Advantage
As a startup, NAB enjoys numerous competitive advantages. Firstly, the company has a distinct beverage recipe that differentiates its products from that of the competition. This distinct advantage will drive sales and help build a unique brand for the company. Secondly, NAB enjoys a cost advantage since the total cost of producing it beverage drinks is lower as compared to the completion. Thus, the company will leverage on this advantage to drive sales by pricing its products lower than the competition. As a new entrant in the beverage industry, NAB’s functional-level strategy is to keep operational costs as low as possible. To achieve this, the company will largely rely on casual labors particularly in the production division, and secondly, most of the other functions such as a bottle, cap, and label manufacturing will be outsourced. Given budgetary constraints, NAB will prefer to rent a production facility for at least 6-12 months while still assessing the market response and demand for the products before embarking on the mass production
Research and Development
Our research and development activities will involve laboratory testing of various recipes and mixing of ingredients in various proportions. It also involves conducting industry research to determine new trends. Research and development will also involve experimenting with mixing, filtration, filling and packaging applications as this will be essential in creating innovative products and optimization of the existing product quality. The R&D division will also perform a lab to pilot tests and conduct comparative product studies. Lastly, it will also handle customer trials, and further manage all products and customer related tests. The products that we currently have in production are three types of Non-alcoholic drinks besides our flagship soft drink product. Two of the other products are energy drinks while one is a fruit drink. However, we also have a soft drink that is yet to be launched.
Technology Plan
The company will use the latest production technology that minimizes inv...