Strategic Plan Part 2 - Research Paper Example

Strategic Plan Part II Introduction Mangoamla Juice Centers LLC (MJC) has embarked on the business to serve antioxidant rich variety of fresh fruit juices (Shan, 2011) to the health conscious customers in the Silicon Valley area in the state of California. MJC will serve unique products to the customers that have not been served ever before in the region. Before taking strategic decisions, the company needs to assess external and internal environment that may impact the company in near or distant future.

Internal Environment Factors Resources Most of the capital will come from the five shareholders that do not need immediate returns from the business. The company will begin with $2 million of initial capital without any interest liability so there is no immediate pressure on the company to earn from day one. Strategy The companys strategy is to develop a formidable brand across major towns of California that people can always identify with. It will be a brand that health conscious customers would always love to patronize.

Innovation The company will adopt innovative means to develop new product recipes and serve tasty first-of-its-kinds fruit juices hitherto unheard of in this part of the country (Carlsen, 2013). Structure The company will operate employing lean and thin structure – keeping minimal manpower and lowest overheads. Most operations will be automatic without any need of manual interruptions. Intellectual Property The company is going ahead registering the recipes of the products under intellectual property rights to thwart the future competition taking advantage of the novelty that these products offer.

External Environment Factors Legal The products of the company will fall under Food and Drug Regulations and all preparations need to be complied with as per the statute issued time to time. Apart, all other state and federal laws including environment laws need to be complied with to the fullest extent as applicable time to time. Economic The company knows that its business will largely depend upon health conscious high-income local residents. Robust local economy is necessary for the sustenance and growth of the business.

Any downturn in the economy can spoil the business prospects. Competition Excessive competition can always reduce market share and profit margins in any business. Though there is no direct competition with any other product as of now as MJC’s business and product concept is novel; however, in future if any other company, especially any MNC comes out with similar concepts then it may impact the business severely. Global The company procures organically grown, antioxidant rich fruits from the tropical countries such as India, Indonesia, and Malaysia.

Any failure to the crops in those countries and currency rate fluctuation is likely to impact the business growth and profit margins. Social Numerous companies operate in the fast food sectors in and around the region. It is a fact that people are more inclined to visit fast food eateries and large to very large companies operate in and around the chosen locations. The company will need to put considerable efforts to lure them toward these novel juice centers. Strengths Innovation Innovation is the very basis on which any organization thrives and prospers and that is the stronghold of MJC too.

MJC has explored entirely novel products to offer that is not heard of in that region. Adding new varieties and variances will keep fueling its growth in times to come. Intellectual Property (IPR) Registering the product recipes under IPR provides safety and strength to the company and guards it from the competition. Strategy The company focuses on brand-building exercise as its long-term strategy to thwart competition taking away its business. A strong brand-build up exercise will give immense boost to its future businesses.

Structure So far and so long the company is small, lean and thin in its structure, it will always help in making decisions expeditiously. Weaknesses Resources Resource limitation is the weakness of the company as the company cannot afford wasting any of its resource. This limitation forces the company to plan meticulously. Opportunities Economic The company’s decision to open shop in Silicon Valley Area increases its chances of business success due to high-income and qualified customer base.

The people with high disposable incomes are a prerequisite as customers for the success and sustenance of such innovative business. Competition The company will not have to face any direct competition as there is none to offer similar products in the region. The company will enjoy the first-mover advantage in its business. Threats Global The raw material supply that comes from the distant regions do not augur well for the company as the company will need to import in the minimum economic size and keep enough buffer increasing the fund involvement significantly.

Import cost may increase in the event of domestic currency depreciation and to that extent the company’s profitability comes under pressure. Legal The company’s products fall under the Food and Drug Control Act and therefore, the company needs to remain highly alert on this front. Any changes in the statute have to be complied with promptly. Moreover, the company needs to preserve the local environment laws minimizing water consumption in the process and maintaining cleanliness.

Social Social habits play a pivotal role in the consumption of food items. As such, a large section of population below age 35 or 40 do not get attracted to the fruits and juices as numerous food options and varieties are available to them. The eating habits of the people very much go against the company and the company will need to work harder to carve a suitable niche. SWOT Summary Table ( Investopedia, 2013). Strengths Innovation: Innovative product and concept. Intellectual Property: Recipes Patented.

Strategy: Brand-building a formidable strategy Structures: Fast decision making through lean and thin structure. Weaknesses Resources: Limited resources do not allow a large leeway in the planning process. Opportunities Economic: High-income location advantage Competition: No direct competition. First-mover advantage. Threats Global: Procurement from far off places and Currency fluctuations are huge threats Legal: Government regulation and environmental laws could become future threats.

Social: Traditional eating habits of the people work against the company. Conclusion Thus, through the analysis of internal and external environmental factors regarding MJC, the strengths and weaknesses of the organization can be ascertained. The analysis also informs about the opportunities that are available to the organization as well as it is equally important to know about the external threats that can put the organization in jeopardy. The whole process eventually, helps undertake many strategic decisions about the businesses.

References Carlsen, M. (2013). Nutritional Journal. nutrition.com. Retrieved February 14, 2013 from http://www.nutritionj.com/content/9/1/3 Investopedia (2013). SWOT Analysis. investopedia.com. Retrieved February 14, 2013 from http://www.investopedia.com/terms/s/swot.asp#axzz2K50XHhdx Shan, T., Ma, Q., Guo, K., Liu, J., Li, W., Wang, F., Wu, E. (2011). Xanthones from mangosteen extracts as natural chemopreventive agents: potential anticancer drugs. ncbi.nlm.nih.gov Retrieved February 14, 2013 from http://www.ncbi.nlm.nih.gov/pubmed/21902651