CONTENTS
Executive Summary 3
References 7
Executive Summary
The purpose of this paper is provide an operational, technology and management plans for Gebeta Enjoyment, a company, which produces non-alcohol wines in Houston, Texas. This part of the business plan analyzes the most effective solutions and approaches applied by the contemporary community with similar business objectives and under similar micro and macroeconomic conditions.
The company will not be outsourcing production to the third-party distillation-services providers
In order to reduce costs and protect potentially developed trade secrets, the company will be buy its own equipment and organize a winery, as this practice is considered precarious by many scholars (Malakooti, 2014, p.88) . Although this step many occur to be financially burdensome for a new company (Farris, 2010, p.143), it will make the company management independent in all decision-making procedures, as well as the firm will not depend on the technology employed by a potential outsourcing partner (Abrams, 2014, p. 122).
Furthermore, the research demonstrates that finding a provider of wine-distillation services is a complicated task (Mejia, Balkin & Cardy, 2008, p. 65). Only several service providers are available in the Northern and Central states, while the management plans to establish the company in Texas, where pilot development and sales operations will be launched (McMillan, 2015, p. 72). Arranging owned facility in the rented premises will not only help the company to exercise control over the key operations, but also it will reduce potential delivery costs (Thompson, Strickland & Gamble, 2010, p. 96)
The Company will purchase equipment
Despite the fact that some analysts suggest renting equipment instead of buying (Thompson, Strickland & Gamble, 2010. p 54), in the present case the second option is considerably more advantageous. Firstly, in accordance with Kichel and his associates (2014, p. 75), by buying new equipment the company can assure supreme quality, as well as the costs of annual maintenance will be lower, than if it decides to utilized used equipment and machinery. Secondly, if the business goes unsuccessful in the long run, the company will be able to sell some assets to mitigate damages (Farris, 2010; Kiechel, 2014)
Ensuring Quality Control
Delivering products of the highest quality is ubiquitously recognized as the shortest way to establishing strong market presence and intensifying competitive advantage (Thompson, Strickland & Gamble, 2010, p. 201) In order to produce the wines of supreme quality, which will present the most memorable and pleasant experiences to the potential customers of the company, Gebeta Enjoyment will (a) use only new, branded equipment and (b) hire an independent, professional and experienced specialist in wines, who will be testing the flavor of produced goods, as well making its chemical analysis. Involving professionals is an universally considered as one of the indispensable steps towards productive excellence (Kotler & Keller, 2006, p. 98). Moreover, in ensuring supreme quality in beverage industry without seasoned specialists is virtually impossible (Zipkin, 2000, p. 83).
The following technology plan is applicable to the needs of the present business initiative:
These technologies have been chosen because their efficiency has already been tested by other companies operating in a similar field. Moreover, the core elements of these technological solutions have not been patented, meaning that the costs associated with their use will be a significant financial encumbrance for the young company.
It is also important to highlight the fact that the company will be using a flat managerial structure, meaning that trello.com task tracking software will be applied only in task-controlling and task-assignment segments. The members of the team will decide on the method of task execution. This approach reflects contemporary management ‘best practices’ (Kotler & Ketler, 2006, p. 209; Farris, 2010, p. 143).
The Wine Production Engineer will be responsible for developing new products, exercising control and management over the Department of Production. The Department of Administration will be responsible for providing organizational support of the entire organization, arranging supplies, managing inventory, logistics etc. The main mission of the Department of Marketing and Business Development is to design, develop and launch advertising campaign, find customers, manage sales and develop the business in general. CEO will be responsible for coordinating efforts of the entire team, negotiating with strategic customers and suppliers and, in consultation with the external advisors, determining the directions of the company strategic growth.
This structure appears to be the most effective to the current and future management needs of Gebeta Enjoyment because it reflects contemporary approach to flat and flexible business organizations (Malakooti, 2014, p. 43). As Howell (2013, p. 52) aptly mentioned an organization seeking to follow a traditional business model should focus on using a conventional structure of business. At the same time, many business commentators argued that the most effective business organizations are those, which give leeway to their employees in terms of choosing the method of executing the tasks assigned on them (Kiechel, 2014, p. 68; Chemers, 1997, p. 25). Gebeta Enjoyment, Inc., thus, will employ a combined model of management – while preserving a traditional structure.
Exception: In Gebeta Enjoyment, the Department of Production will be completely subordinated to the Wine Production Engineer.
References
Abrams, R. (2014). Successful business plan: Secrets & strategies (6th ed.). Palo Alto, CA: Planning Shop.
Chemers, M. (1997). An integrative theory of leadership. Mahwah, N.J: Lawrence Erlbaum Associates.
Farris, P. (2010). Marketing metrics: the definitive guide to measuring marketing performance. Upper Saddle River, N.J: FT Press.
Howell, J. (2013). Snapshots of great leadership. New York: Routledge Boston: McGraw-Hill Irwin.
Kiechel, W. (2014). The lords of strategy : the secret intellectual history of the new corporate world. Boston, Mass: Harvard Business Press.
Kotler, P. & Keller, K. (2006). Marketing management. Upper Saddle River, NJ: Pearson Prentice Hall.
Malakooti, B. (2014). Operations and production systems with multiple objectives. Hoboken, New Jersey: Wiley.
Mejia, L., Balkin, D. & Cardy, R. (2008). Management: People, performance, change.
Thompson, A., Strickland, A. & Gamble, J. (2010). Crafting and executing strategy: the quest for competitive advantage: concepts and cases. Boston: McGraw-Hill/Irwin.
Zipkin, P. (2000). Foundations of inventory management. Boston: McGraw-Hil
