Organizational Culture of Tea Infusions - Case Study Example

The paper "Organizational Culture of Tea Infusions" is a wonderful example of a case study on management. Tea Infusions is a start-up company offering a wide variety of rare and common Chinese teas to the greater Brighton Area. The business will be established as a public limited company generating start-up capital through the launch of common stock at an incentivized, low stock price rate to make institutional investments less risky. The business’ competitive edge will be achieved through differentiation, emphasizing exclusivity and superior quality using targeted, integrated marketing communications.

Tea Infusions has low fixed and variable costs and opportunities for making substantial revenues. Estimates illustrate revenues of £217,900 monthly with total monthly expenses of £118,000. Hence, the cash flow forecast indicates Tea Infusions will sustain cash reserves of £1.1 million at the end of Year 1 of operations. This is achieved by keeping labor costs low, procuring cost-effective raw products from China, and the high mark-up rate on the finished products compared to raw materials costs.

The business anticipates immediate profitability and will have substantial retained earnings throughout the first year of operations to pay top executive salaries and deliver dividends to incentivize future purchases of the stock as its valuation increases. Payback of all start-up capital will occur within Year 1 of operations. The business is proactive in identifying potential risks, including information technology failures, equipment failures, and issues with supplier competency in delivering timely and fresh products.

The company, to explore all potential risks, will be creating a Steering Committee that reports directly to the Board of Directors as a means of establishing a competent and well-developed risk management system.1.0 Venture Overview Tea Infusions – The Delectable Chinese Tea Company 1.1 Mission and vision Tea Infusions has a simple mission: To become the most reliable multi-channel provider of quality Chinese teas that promote physical and spiritual wellness and a remarkable tea-drinking experience.

To fulfill this mission, Tea Infusions has a vision of becoming the most trusted and recognized distributor of Chinese teas in the United Kingdom, bringing a taste of China into the homes of discriminating tea drinkers.