Operations Plan

Key Aspects of Operations (possibilities include facilities, product process, equipment, labor force utilization):

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 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. At the beginning, manual labour will be more compared to the use of machines. Manual labour 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 involve manual labour 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 environmental 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 on the cost. The rented space is meant to increase the 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 overcome this challenge.

  1. Provide a rationale for the competitive advantages section using appropriate functional-level and business-level strategies to explain the competitive advantages.

Note: Much of the research pertaining to the hints provided here can be found in the NAB company portfolio.

Hints: Consider whether you will rent or buy your facilities or outsource production to an existing company.

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 own 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 sanitary practices should reflect the same. Manpower will be used to clean the fruits. During production, blending and

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