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Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 1

Assignment 3 Part 1

Operation, Technology, and Management Plan

Hoa Tran

Strategic management Bus 599

Dr. Joeal Nwagbaraocha.

Washington DC Campus

Strayer University

Summer 2017 Quarter

August 26, 2017


Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 2
1. Create an operations plan for your NAB company using the template in the text as a

guide (p. 214 | Operations Plan Preparation Form). Extract appropriate information

from the NAB Company portfolio, where applicable. Other required items in the

template should be filled in using your personal preferences.

An operation plan of Healthy Drinks organization is a short but very detailed plan that is

drafted by the management so as to achieve specific strategic objectives together with goals of

the company. Operation plan usually has the aim of ensuring that the set aims are attained

without failure so that the company’s revenue and profits can be increase and can attract more

investors.

Healthy Drinks organization is one among the many firms which produces organic

healthy drinks. For it to have a good operation plan, it ought to increase its operation accessibil-

ity in several areas such as Africa, China, Europe and India .The company is also required to

come up with strategies of engaging in producing other types of products like their main com-

petitors do.

For the operation plan of Healthy Drinks Company of expanding their business to the in-

ternational market to be effective, the company ought to inform their manufacturers to ensure

that they take essential actions through increasing their production. The company should also

carry out market research so as to determine the demand in the projected locations. The com-

pany ought to develop some competitive advantages over their competitors in the market to

ensure that they enjoy good business relations with their consumers.
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Key Aspects of Operations: Healthy Drinks lays great emphasis on the operational plan as it

guides the development and management of processes and procedures on inventory control, storage,

shipping, and customer services. The success of the company depends on the efficiency of the campaign

plans. Consequently, there has been a great effort to institute efficient and effective processes and pro-

cedures to guide operations at Healthy Drinks. Since the business is a start-up, it will use a just in-time

inventory system. The approach aims to limit storage and material holding costs. Healthy Drinks will

have several suppliers of raw materials to prevent cases of shortage and lost production associated with

using only one vendor.

Cost and Time Efficiencies : Healthy Drinks has various measures to reduce its opera-

tional costs while increasing time efficiency. At the onset, the firm will only employ experienced

staff who can work fast with a minimal waste. Additionally, it will not hold more than 1,000

units at any given time. Additionally, management will not take any pay for the first six months

of work ensuring that the firm has sufficient financial resources to fund its operations. The pri-

mary goal will be to operate the business in the most cost-efficient way possible by applying

sound economic principles. The company will make use of drop ship services to reduce over-

heads and boost efficiency. Moreover, it will aggressively negotiate its contracts and credit facil-

ities. Finally, it will ensure that all processes and procedures are green. For instance, all commu-

nication will be done through to limit paper and printing costs.

Competitive Advantages: Various factors help create several competitive advantages for

the firm. At the onset, the application of the just in-time inventory system helps create a competi-

tive edge over other consumers since they get fresh products at all times. The small size of the

business makes it agile and flexible. Consequently, the firm can alter its operations at any time

depending on the level of the demand in the market. Additionally, the small team creates great
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 4
chemistry, which enhances productivity, efficiency, and innovation at the firm. Moreover, the

company has minimal bureaucracy being a startup which advances the effectiveness of the deci-

sion-making process. Besides, the small size limits operational costs allowing the company to

offer its products at the most competitive price.

Problems Addressed and Overcome: The distributor and outward suppliers will cater

for shipping costs for the finished goods. When customers make bulk purchases, they will only

pay 30% of the charges. Healthy Drinks will only hire experienced staff at the cost of $13 per

hour. Even though they are expensive, they help limit waste while increasing the quantity pro-

duced. The processed drinks that are ready for sale will be held at the company store, which can

hold about 100,000 units. The annual rent paid for the building is $5,000. Healthy Drinks will

conduct market research every six months to appraise market trends and determine the products

that are most demanded by consumers.

2. Provide a rationale for the competitive advantages section using appropriate functional-

level and business-level strategies to explain the competitive advantages

*Identification of SWOT Analysis.

So as to make well-developed as well as successful strategic planning, Healthy Drinks

management is supposed to go deep into their SWOT and determine the strengths as well as

weaknesses that they have.

*Using PESTEL Analysis.

The company should ensure that it identifies its external environment so as to be success-

ful in its operation plan.


Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 5
Various factors help create several competitive advantages for the firm. At the onset, the

application of the just in-time inventory system helps create a competitive edge over other con-

sumers since they get fresh products at all times. The small size of the business makes it agile

and flexible. Consequently, the firm can alter its operations at any time depending on the level of

the demand in the market. Additionally, the small team creates great chemistry, which enhances

productivity, efficiency, and innovation at the firm. Moreover, the company has minimal bureau-

cracy being a startup which advances the effectiveness of the decision-making process. Besides,

the small size limits operational costs allowing the company to offer its products at the most

competitive price.

3. Describe your research and development activities and explain how they will contribute

to the company. Clarify your company’s message using the information provided on the

worksheet in the text (p. 160 | The Five F’s)..

FUnction:

Fiance:

Freedom:

Feelings:

Future:

Which of the messages is the most important in motivating your target market to purchase?

How will you express this message to your customers in the areas listed below?

Business Name:

Slogan:
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Key words in Marketing Material:

Product Design:

Logo:

Website Design:

Blog Language and Design:

Choice of Media Social Sites:

Other Graphic Image/ Design:

Packaging:

Decor:

Style of Clothing Worn by Employees

Merchandising/ Displays/ Presentation Materials

Other
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 7

In strategic management, the issues of successful implementation are seen to be rotating around

how effective or bad Healthy Drinks Company responds to issues concerning changes. Accord-

ing to my research and development activities, there are four issues during operations planning.

The problem of configuring the business units where business unites tend to have exter-

nal market for products and services. Thus the management has the possibility of planning as

well as executing strategies without depending on other pieces of the company such as the cul-

ture.

The other issue is traditional management reports which are not normally sensitive in

monitoring the implementation strategies. This always makes the operations managers not to

be fully aware of what is going on and can lead to poor performance.

The distributor and outward suppliers will cater for shipping costs for the finished goods.

When customers make bulk purchases, they will only pay 30% of the charges. Healthy Drinks

will only hire experienced staff at the cost of $13 per hour. Even though they are expensive, they

help limit waste while increasing the quantity produced. The processed drinks that are ready for

sale will be held at the company store, which can hold about 100,000 units. The annual rent paid

for the building is $5,000. Healthy Drinks will conduct market research every six months to ap-

praise market trends and determine the products that are most demanded by consumers.
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 8
4. Create a technology plan for your NAB company using the template in the text as a

guide (p. 227 | Technology Plan Preparation Form). Extract appropriate information

from the NAB Company portfolio, where applicable. Other required items in the tem-

plate should be filled in using your personal preferences

Most business organizations use so form of technology in carrying out its business opera-

tions. For example, business professionals use information technology in processing orders as

well as maintaining financial records together with making communication with customers and

suppliers. Determining which hardware or software a company needs to remain competitive calls

for planning as well as organization. Healthy Drinks therefore needs to come up with a technol-

ogy plan so as to maintain their business environment together with training their staff and sup-

porting all workers who utilize the technology in their daily activities. The Healthy Drinks tech-

nological plan involves the following steps.

1. The Healthy Drinks company needs ought to be known and then a superior website

blueprint done. This is carried out so as to ensure easy communication with clients as

well as ensure internet sharing podium where buyers and customers have the possibil-

ity of freely posting their requirements as well as dissatisfactions.

2. Healthy Drinks Company then has to decide to choose a technology which can grow

as well as change with the Non Alcoholic Beverage Company and which offers sup-

port to the strategic goals. This is carried out through the usage of templates as well

as tools together with resources presented by websites so as to aid it make decisions

concerning how much it capable of spending on technological investments.

3. Evaluating of software alongside hardware products in accordance to the organiza-

tion’s requirements is then carried out. This involves taking care of all the parties
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 9
connected with the industry by characteristically providing lists of the vendors who

are helpful in the provision of industry-specific technology. The Healthy Drinks

Company then attends trade shows so as to see live exhibitions as well as speak with

trained sales persons.

4. The Healthy Drinks Company is then required to involve itself in the development of

a disaster plan so as to counter emergencies. If Healthy Drinks Company depends on

their technology to operate their beverage production each single day of the week, it

might have to to launch a backup site to enable it run its operation in another website

in the event of a natural as well as man-made emergencies.

Technological Plan Preparation

Software Needs: One the biggest and most significant investment the business will make is the

implementation of an efficient ERP (Enterprise Resource Planning) system, which is expected to

make the business sharper and faster than its competitors. The system will link the business to its

suppliers, clients, employees, and distributors. It will ensure transparency, productivity, and deci-

sion-making. It will make sure that all departments have access to real-time data and information

needed in their operation. The ERP will be set up before the business commences its operations

to guarantee that it is tried and tested before the process and procedures in the firm become com-

plicated. Various factors will be considered the selection of the ERP. It will be scalable, cloud-

based, and integrated and allow for automatic updates.

Hardware Needs : Healthy Drinks owns a few pieces of hardware. At the onset, it holds two

beverage mixers that can mix up to 200 gallons valued at $28,500. The Beverage Filling Ma-

chine, which is imported from Italy, is integrated with a rinsing, filling, and capping three capa-
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 10
bilities in one Monobloc machine. The equipment is fitted with a constant temperature control-

ling system. As a result, it can be used to fill both hot and cold espresso coffee into 16 oz. bot-

tles. The machine has some of the best technology in the market. The table below (Table 1)

shows some of the equipment the company owns.

Healthy Drinks recognizes the fact that one of the main cost drivers for a manufacturing

firm is the labor costs. Consequently, the company has invested in technology to reduce its ex-

penses on operation through the automation of its processes. Moreover, the machine will help re-

duce waste, which is common in human production.

The application of quality technology will boost the firm’s productivity and efficiency.

The machines are not only faster but also more accurate when compared to human labor. The

management at Healthy Drinks is well aware that people are slow and occasionally fail to deliver

on their tasks. The integration of the latest technology in the production line simplifies work,

leads to consistency, and avails higher quality results than people. Even though the technology

has high acquisition costs, it will help the company save a lot of financial, time, and personnel

resource in the long-term.

Table 1

Equipment Quantity Value for one Total Value


200 gallon Beverage Mixers 2 28,500.00 57,000.00

Bottling Machinery (Helps in filling and cap-


2 9,600.00 19,200.00
ping)

Vehicles (Used panel vans) 4 10,000.00 40,000.00


Computers (Apple Macintosh) 3 1,200.00 3,600.00
Graphic software 1 750.00 750.00
Total Value 120,550.00
Equipment Owned by Healthy Drinks
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 11

Table 2

Equipment and a Monthly Charge

Equipment Monthly Charge


Labelling Machinery 450
Printers 550

Telecommunication Needs : The founders acknowledge the importance of effective communi-

cation in the success of the firm. The most significant telecommunication facility the company

needs is stable internet access as it connects the business with its suppliers, distributors, and con-

sumers. It will be the basis for every communication in the business. The company aims to re-

duce the use of paper-based communication. As a result, it will need an efficient email service.

All communication exchanged between the enterprise and its stakeholders will be done through

email. For instance, it will be used to place orders with suppliers, receive orders from clients, and

manage the distribution of the firm’s products. When the business starts, it will use Gmail, which

will be customized to meet its needs. Management prefers Gmail because it offers the most relia-

ble and secure email service.

Moreover, the business will need an efficient telephone service. In spite of technological

development, which has resulted in the growth of social media and instant messaging services, a

significant segment of clients still use telephones to make inquiries on various issues such as

products on offer, working hours, delivery services, and the location of the business. As a result,

the company will need a reliable and quality phone service. The firm will work with a provider
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 12
offering digital voice, also known as VoIP services. It will also use a hosted PBX to serve its

communication needs.

Finally, the other significant communication the company needs are website hosting and

offsite data back-up. The company needs to have its website running 24 hours a day, seven days

a week to ensure that clients access its services at all times. Additionally, the website should be

hosted in a secure environment to prevent data loss due to hacking. What is more, the company

expects to generate a significant part of its income through the website. Consequently, it will

partner with a leading crowd computing firm to host its online platform. Besides, the cloud com-

puting organization will provided.

Personnel Needs :The business recognizes the importance of having an efficient team.

The founders are aware of the fact that the most significant step towards success is the institution

of an effective team. At the onset, the firm has two passionate and energetic partners, who are

willing to do all it takes to ensure that it enjoys success in the future. The company has several

technical and non-technical requirements. For instance, it needs someone to handle production

and quality control, drive sales as well manage its finances and administration. The two most im-

portant functions of the firm are quality control, marketing, and finance. The company will hire

individuals with experience in various capacities to limit its operational cost. For instance, the

person dealing with finance will also handle administrating. The one dealing with production

will also manage quality control.

The finance and administration officer will work with the founders to forecast the needs

of the market. They will offer reasonable assurance showing where the company should go. The

firm will be very efficient only hiring for the critical positions. Consequently, functions such as

information technology and security will be left vacant.


Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 13
5. Provide a rationale for the personnel needs section by incorporating appropriate func-

tional-level strategies.

The Board of directors of True Rat Company is only answerable to the shareholders. The

responsibilities of the board include the selection as well as oversight of the senior management,

comprising the chief executive officer and the CEO. The top management is responsible for True

Rats operation as well as oversight.

The middle management is composed of the general manager as well as the regional

manager. The general manager has the responsibility of overseeing all the administrative func-

tions in the company. A major part includes leading as well as directing workers. He or she is

also responsible with delegating administrative tasks like accounting as well as paperwork to-

gether with payroll. The regional manager at True Rat is responsible for accomplishing regional

sales as well as human resource goals through recruiting, selecting as well as training and disci-

plining workers among others.

The first line management consists of supervisor as well as office manager and team

leader. The office manager is responsible for maintaining office services by organizing office

functions as well as designing filling systems etc. the supervisor is responsible for setting perfor-

mance standards in the production of Pick N peel (Tillmann & Goddard, 2008). The team leader

has the responsibility of providing guidance and direction to the group of employees that True

Rat has.
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 14
6. Create a management plan for your NAB company using the template in

the text as a guide (p. 248 | Management Plan Preparation Form). Extract appropriate in-

formation from the NAB Company portfolio, where applicable. Other required items in the

template should be filled in using your personal preferences. Form

Key Management and Employees: The management team at the company will consist of five

employees. At the onset, I will act as the president and chief executive officer. Jonathan

Wrublewski, who developed the original idea behind the company, will serve as the master

mixer and quality control. Rosie Wrub, who has worked as the plant production foreman at Pepsi

but retired recently after having been working at the company for 35 years, will be in charge of

the production line. Jennifer Lopz, will also be involved in the management of the company.

Board Members and Advisors: The firm appreciates the critical role played by the board of di-

rectors and advisors, especially because the business is new. They are expected to offer guidance

in the establishment and growth of the firm. They will be instituted and used in a way to ensure

that they have a positive impact on the business. At the onset, the firm will have four boards

from various spheres of life. 50% of the board will consist of independent directors to ensure that

the company has the right skills, interests, and expertise offering guidance. The board and advi-

sors will have the freedom to oppose and contradict management. Finally, all recommendations

by the advisors and the board will be implemented promptly. The advisors will act as mentors to

the firm’s management.

Management Structure and Style: The firm will have a simple structure, which will be insti-

tuted at the formation of the business. It will detail the duties and roles of each position in the
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 15
company. Besides, it will have specific job descriptions for all positions. The structure is im-

portant as it establishes the different function needed by the organization and the nature of skills

that should be hired. Management is well aware of the fact the presence of an effective organiza-

tional and corporate structure makes the firm more attractive to investors as a clearly defined

structure is a significant marker for serious investors.

7. Using the flow charts on p. 242 as a guide, outline your company’s management

hierarchy. Note: Charts or diagrams must be imported / included in the MS Word docu-

ment.
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 16

8. Provide a rationale for the management structure and style section by incorporating ap-

propriate functional-level strategies.

The management as well as organizational plan comprises the good managerial strategies

that Managers at Healthy Drinks put into action so as to guarantee the expansion of the company.

They include;Employment of qualified staff and workers. For Healthy Drinks Healthy Drinks

Company to expand, the management needs to hire qualified top management who has the possi-

bility of improving the production of quality products to ensure widening of the customer base.

Instilling teamwork

Teamwork in the staff and employees is one among the many strategies that True Rat

Company ought to employ to ensure that it expands in the international market (Strand, 2014).

Teamwork guarantees that product production is done at the right time as well as with the right

technology required by the customers.

The firm will have a simple structure, which will be instituted at the formation of the

business. It will detail the duties and roles of each position in the company. Besides, it will have

specific job descriptions for all positions. The structure is important as it establishes the different

function needed by the organization and the nature of skills that should be hired. Management is
Running Head: OPERATION, TECHNOLOGY AND MANAGEMENT PLAN 17
well aware of the fact the presence of an effective organizational and corporate structure makes

the firm more attractive to investors as a clearly defined structure is a significant marker for seri-

ous investors.

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