16 Jun 2022

327

Operation, Technology, and Management Plan for Fresher Inc.

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Academic level: College

Paper type: Research Paper

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Operation Plan 

Acquisition of Equipment 

To transition from the small scale production of non-alcoholic beverages to large scale production model, the company has acquired two non-alcoholic mixer beverage filling machines at a value of $57,000. Each of the NAB mixers has the capacity to mix approximately 200 gallons. Additionally, the company has acquired two capper bottling machines at a cost of $19,200 and which will be critical in the reduction of human errors during the process of capping bottles ( Davis, Lockwood, Alcott, & Pantelidis, 2018) . Four vehicles acquired at $10,000 each will facilitate the timely distribution of the product while the acquisition of three Apple computers at $1,200 is for office use. The Macintosh was selected because of their ability to protect the company data against malware, and $750 worth of graphic software was obtained for advertisement purposes. 

The company shall lease labeling machinery at a monthly rate of $450 as well as printers at $550 per month. Presently, the Fresher Inc. has an inventory of 24,000 (16 oz.) glass bottles valued at $33,000, 24,000 labels valued at $840, 24,000 metal caps valued at $300, and 500 cardboard cartons that can hold 48 bottles of the beverage each. The entire lot of the cardboard cartons is valued at $500. Moreover, the company has sufficient ingredients to manufacture 24,000 bottles of the non-alcoholic beverage drink valued at $600. With competitors such as PepsiCo and Coca Cola retailing a bottle of 20 oz. at $2, the company’s Gatorade is expected to penetrate the market at $1.6 per bottle of 16 oz ( Davis et al., 2018) . Thus, the expected sales in the first three months are projected at 24,000 bottles a day with the potential of scaling higher thereafter and target revenue of $1 million after two years of operation. Otherwise, with the acquisition of these high-tech machineries, the quality of the all-natural fruit drink is expected to be maintained constant at all times. 

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Inventory Control 

Thus, it is imperative that the process of obtaining fresh fruits be guaranteed to ensure that the quality is constant. Therefore, the company will contract different fruit farmers to ensure that the quality of the fruits used in the production is always fresh with no additives or chemicals of whatever form. Only the farmers with the capability of supplying the large inventories within short notice will be contracted as the company has plans to adopt just-in-time manufacturing due to limiting financing options ( Borges Lopes, Freitas, & Sousa, 2015) . Hence, once an order is placed, the company will take up to 24hrs to produce 24,000 bottles of a healthy drink. 

Distribution of the Product 

Fresher Inc. will focus on maximizing on their strengths and minimizing their weakness while taking advantage of all opportunities that avail itself to the organization all the while working on the elimination of the threats. With such a focus, the distribution of the product is predicted to be not only robust but also guarantee effectiveness in the supply and consequent growth of the company. For instance, the company focuses on diversification of products to increase its product line ( Davis et al., 2018) . This will be facilitated by the 3-in-1 Mixer Beverage Filling machine that has the ability to control temperatures making it suitable for filling hot and cold beverages like coffee, tea, and juice. 

In the distribution strategy that will be adapted, the company will overcome the low pricing weakness by adapting a pricing equivalent to the top beverage competitors who capitalize on their brand but will use 16 oz. bottles instead of 20 oz. bottles. This packaging strategy is a psychological way of making the consumers feels like they are purchasing the product at a lower cost when in actual sense they are purchasing at similar rates as competition ( Davis et al., 2018) . In addition, the company will capitalize on the opportunity presented in healthy foods and beverages, which is a niche market. Research has shown that there is a growing demand for healthy foods and beverages. Hence, this move will obliterate the threat of legal requirements for the disclosure of negative label details. 

New Developments 

At the moment, the company is working on a number of non-alcoholic beverages that are all derived from fresh juice. An example is the production of the super mango flavor that is the mixture of fresh mango fruits and avocado. There is also the development of the spiced tea that is served hot and cold ( Davis et al., 2018) . Fresher Inc. is also working on the introduction of the special coffee which will be made from an addition of groundnuts to coffee and laced with spices which will only be disclosed after the launch of the product. 

Research and Development 

As much as the product proved to have a demand in the initial take-off, there is a need for research and development as this is the only way that the company will grow progressively. Therefore, a research and development team is currently being assembled to lead research into market penetration ( Sarkis, 2017) . Otherwise, there is an ongoing study to determine the customers’ reaction to the super mango flavored fruit juice as well as the spiced tea and the special coffee. The current research is composed of a team of two and is led by the NAB creator and master mixer, Melinda Cates assisted by the CEO cum president of the company. 

Technology Plan 

At the moment, the company is planning on using limited technology as the number of personnel is small and manageable. However, there are plans to acquire a comprehensive human resource management system to manage the benefits of the employees, evaluate performance, as well as accessing payroll services ( Sarkis, 2017) . This technology will only be adopted when the company expands, which, according to current projections, is two years after launching. The software identified for this purpose is the Workday, and it has been selected as it meets the requirements of the company. The application developed to support both international and regional laws and regulations. 

Through the use of Workday, Fresher Inc. will be able to prioritize privacy and security issues as the application supports even the compliance of GDPR. The company will be able to automate and configure local as well as regional regulations to maximize compliance and competency in production ( Sarkis, 2017) . The software has a plethora of benefits comprising the configuration of the business processes at varying levels. Thus, it is capable of deploying rapidly using predefined enterprise process directories as well as empowering workers with embedded analytics which are crucial in making precise decisions. Additionally, the company is planning on using Zoho Inventory to manage its online inventory and orders. 

This low-cost online application has been identified as it has the capability of optimal order and inventory management covering purchase, packing, and payments. Zoho was identified as it has the ability to increase online sales when employed and thus, expanding the online business through its management system of multi-channel inventory ( Sarkis, 2017) . The online software also has a competent management system that has the ability to manage orders, both online and offline. Through the application, it is possible to not only create backorders but also drop shipments as well as purchase orders. Nevertheless, Zoho uses batch tracking and serial number features that enable the tracking of every single batch or item in the inventory. These features make it even easier to track the expiration of each batch or item of the inventory. 

For the purpose of collecting feedback and engaging with the clients, the company has optimized the use of different social media channels which double up as advertisement platforms. Examples of the channels adopted by the company include Instagram, Twitter, Facebook, YouTube, and LinkedIn, which is also very useful in the recruitment process ( Sarkis, 2017) . Using social media is advantageous as most of the customers spend most of their time on the platforms. Thus the media offers a great opportunity to interact with the clients. These platforms are a perfect tool for the provision of customer service. When properly used, social media has the ability to drive in new clients who are dissatisfied with the competitors' products. 

Technologically speaking, the 3-in-1 mixer and filling machine is the best move the company has made in relation to production as the equipment is vital in production as it assists in switching production at cost-effectively. The other piece of technology that the company has acquired, and that will boost productivity is the Accutek AccuSnap Capper that is extremely efficient in the placement of snap caps ( Sarkis, 2017) . This technology has replaced manual placement of the caps, which involves spillages due to fatigue in the labor force or perennial accidents that lead to injuries. In addition, the machine adds value time in the production process as it avoids non-value tasks such as taking unproductive breaks from work by human labor. 

Management and Organization 

Currently, the management structure of the organization is, as indicated in chart 1. The CEO and the president is the topmost office with the incumbent receiving no salary for the initial six months of operation ( Borges Lopes, Freitas, & Sousa, 2015) . The position will be a full-time basis, and after the initial six months of operation will attract a salary of $55,002 an amount that will double in the second year and triple in the third year henceforth. Master Mixer will report directly to the chief executive officer and happens to be the founder of the company and has invested $40,000. As the creator of the non-alcoholic drink, Master Mixer owns the patent to the drink. 

The Computer Expert Assistant forms part of the team and works on a part-time basis. Stephen Job is required to report to work for 20 hours every week and earns an hourly rate of $10. He reports to the Melinda Cates, and so does the Production line foreman, Ian Glass. Ian, a retiree from PepsiCo, adds 35 years' experience in his position and works as a volunteer with no pay. He holds the position until the company is in a stable position to employ a full-time foreman ( Borges Lopes, Freitas, & Sousa, 2015) . The last member of the team is Mary Cates, who is a contracted consultant to the company. She has 30 years' experience working with the Federal Trade Commission as a senior executive and is expected to assist the company with the legal challenges of the business. 

Chart 1 : Flow Chart of the Current Structure of the Management 

Ethics and Social Responsibility Plan 

The company has a target of reaching $1 million in two years, meaning that the production capacity of the company will have increased. Thus, the management has future plans to employ a second Production Line Foreman to help reach its set goal. With the second foreman, the company will introduce shifts to increase its production capacity using the available resources ( Borges Lopes, Freitas, & Sousa, 2015) . Consequently, the projection line workforce will be employed to ensure the smooth operation of the shifts. Furthermore, there are also vacancies for future placement of the maintenance workforce. These are projections based on the production needs in the next six months but does there is room for changes based on the changes in production capacity. 

Ethics and Social Responsibility Plan 

The company has as part of its social responsibility created jobs for the residents of Purchase, New York City. The chief executive officer, computer expert assistant, production line foreman, and the consultant are all natives of Purchase. Thus, Fresher Inc. will continue to offer priorities to the natives and providing them with training where skills are lacking ( Gomez, 2016) . As the company grows, the policy will be applicable to all areas where the company will have established itself, and natives will be a priority. Otherwise, Fresher Inc., through the advisory services of the paid consultant, will continue to abide by all laws and regulations of the country, state, or locality in which it operates its business. 

In addition, the company believes in the honest and fair treatment of its workers as it believes that a happy worker is a satisfied customer. Therefore, Fresher Inc. has plans to offer its human resource the benefits as stipulated by the relevant jurisdiction of its operation ( Gomez, 2016) . The company will also carry continuous evaluation of its workers’ satisfaction to ensure that they are motivated. Workers’ job satisfaction is believed to improve customer service as well as increase creativity in the workplace. Thus, to ensure that this fete is achieved, the management of Fresher Inc. plans to conduct on the job training for its workers to ensure that the workers grow both personally and career-wise. Fresher Inc. also intends to be equal employment to all men, women, physically challenged, and all ethnic divide. 

The company plans to promote healthy living through the consumption of healthy foods and beverages. Therefore, the management at Fresher Inc. has plans to ensure that it advocates for this goal through its advertisement campaigns and social engagements ( Gomez, 2016) . The life span of Americans is decreasing rapidly due to many factors amongst them, a poor lifestyle which includes consumption of high quantities of unhealthy food and beverages. Most of the products that Americans consume contain chemicals that are undesired and which have long-term consequences to the users. Among the consequences is the development of acute conditions that lead to early mortality due to the accumulation of the harmful effects in the body. Fresher Inc. intends to campaign for healthy consumption of Gatorade all-natural fruit non-alcoholic beverage that has health benefits to the consumers. 

The company stands to gain more profits from the use of plastic packaging material such as bottles and carrying crates. Due to the company's policy on environmental management and conservation, Fresher, Inc. has resorted to the use of glass bottles which have an added advantage of being able to be reused. Moreover, the company also uses metal caps instead of plastic, which are non-biodegradable ( Gomez, 2016) . Additionally, the company also uses cardboard cartons rather than plastic carrying crates. These are all part of the policy developed by the company to promote a safe environment. Furthermore, management of Fresher Inc. has set a policy to promote the recycling of wastewater, especially in areas where there is a scarcity of the resource. 

Fresher Inc.’s products are all healthy products that are intended to add value to the health of the consumer. Since the products are known to have a short shelf life, the company has plans to ensure that the production of the products correlates to market demand ( Borges Lopes, Freitas, & Sousa, 2015) . This will be achieved through the just-in-time production where the company will manufacture the products based on the demands. This strategy is meant to ensure that the market is not flooded with the product as when the market is flooded; the possibility of expired products being unnoticed is high. 

References 

Borges Lopes, R., Freitas, F., & Sousa, I. (2015). Application of lean manufacturing tools in the food and beverage industries. Journal of technology management & innovation, 10(3), 120-130. 

Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage management. New York: Routledge. 

Gomez, A. M. D. (2016). Ethics, psyche and social responsibility. Boca Raton: CRC Press. 

Sarkis, J. (2017). Greener manufacturing and operations: From design to delivery and back. London: Routledge. 

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