Business Report: Better Drinks
Better Drink Company is well known soft drink company based on mainly New Zealand but they have their market in New Zealand, Australia along with manufacturing plant over there, they also expand their business all over the world. They have product base which is confined only soft drink with limited flavour which might not be able to earn more revenue in future so they need to focus on product and business development. In this report external environment, product development, marketing strategies will be discussed which can be important for organization to retain their position in global market with competitive advantages.
Better drinks company is well-known New Zealand based soft drinks company. Being a part of beverages industry it will be difficult for them to retain their position in this competitive market. So they need to diversify their product to gain more market share and prove themselves to be giant in this industry. Purpose of this report is to discuss the strategy which is described below.
History:- Better drinks company started as Charlies group limited which was established by three child hood friends Marc, Simon and Stefan based on concept that consumers should intake fresh juice extract from fresh fruits not those drinks which was prepared by using harmful preservatives.
Types of business:- This organization belongs to manufacturing business. They have their own manufacturing factory in South Australia.
Location:- This is New Zealand based company with production plant in NZ and Australia but they do business all over world.
Vision/Mission statement:- To provide higher-quality of real fruit-juice without preservatives and concentrations to the people of New Zealand and people all over the world. Increase better people engagement to do better business that delivers better investment choices and returns.
SWOT analysis refers to strength, weakness, opportunity and threat analysis of any organization which make management to understand exact position with respect to other competitors in global market (Helms, 2010). SWOT analysis for this organization has been discussed below.
Reliability:- This organization is reliable enough that people would believe that they will provide fresh juice extracted from fresh fruit without adding preservatives. It is true that sometime company faces shortage of raw materials still they stick to their own values of proving healthy and higher quality drink to people. During the shortage of raw material they import fresh fruit from other countries with high price.
Need and demand:-Demand for their productis quite high as consumers know that better drink company will provide better quality drink.
Strong brand identity:- It possess strong brand identity in global market for their product quality and uniqueness.
Large no of consumer:- Reliability on this organization attracts and retain a large no of consumer who increase revenue of this organization.
High price:-To maintain product quality sometime company has to import fresh fruits while faced shortage within domestic territory for this reason raw material cost became high and impacts on cost of sales good. Sometime this becomes weakness because high price product do not attract low income group so some portion of target will be left while price will be higher.
Small product base:-This company has very small product base and confined within fruit juice drink. Though product has different flavour variety still they do not have product base variety.
Unable to attract new generation:- New generation people loves to go for experiment but this company product do not have that much of variety so that they could attract new generation people.
Ageing Population:- This product mainly consumed by young people with the increase of their age they will stop to consumer this product.
Extension of product line:- as this organization has experience in global marketing and position so they can expand their product line without confined themselves in juice product. This knowledge will help new product to be penetrated into global market under same brand.
Using of social media:-Thisorganization should use social media so that they could reach out and target new generation people as social media mainly operated by them
New market in different country:- This organization has key personnel who has knowledge about global market by using those knowledge this organization could develop a new market in new country.
Economic:- This product is low cost product so people will buy without hesitation.
Health concern:- Product of this company directly consumed by consumer without processing further. So after intake it might cause several health problems if production processes are not properly maintained or if intake more than permissible limits.
Consumer awareness:-To avoid this issue company should provide adequate information to consumer about merits and demerits of product with raw material details.
Entrants of new product:- This product is low cost product which can be easily substituted. So there is always threat of new entrants with low price.
Life style:- Alcohol , bottled water, variety of fruit juice can be threat for this product depending upon consumer’s life style.
3.Porter’s 5 force model:-
To analyse position of any organization considering external environment porter’s 5force model widely used worldwide (Tanwar, 2013). It will help to understand how an organization behaves with respect to those factors. Here those factors are being discussed below.
Bargaining power of buyer:-Bargaining power of buyer is high for this product.Being soft drink company better drink company will not gain bargaining power. As the cost of product is low so chances of switching is more than costly product. In this case bargaining power will be with buyer as they have so many options to adopt. A small price difference could make difference and lead consumer towards the product switch. As soft drink is not essential product it is a luxury product so people will not spend more for this. They will go for another same drink if they would get same thing with lower price and higher variety.
Bargaining power of supplier:-Bargaining power of supplier is low. As the competition is very for high within this industry company will look for special ingredients, special equipment’s and recipes to be unique from other company within same industry. In this case suppliers are available because raw materials are not that much of scarcity in nature. So firms can easily switch their supplier from one to another. Company will choose those suppliers who can do their best job with respect to other with lower cost and good quality. As this industry is not heavy material industry so main earning comes from equipments and customer of the firms.
Threat of new entrants:- Threat of new entrants is low. This industry can become difficult for new entrants because everybody can produce soft drink and there is no variety as such so competition will be much more higher. This is very cost intensive industry as they need many equipments and assenting distribution channel. Distribution channel is important factor for soft drink industry because this low cost product so revenue will be higher if only company can sell more quantity.
Threat of substitute:- Threat of substitute is higher in this industry as this product is low cost product people will easily switch to other product if they could get different variety product at lower price. There are many other beverages which can substitute soft drinks like tea, coffee, water, sport drinks etc. In spite of having options customers normally don’t opt other beverages option as there is very strong competitive pressure in this industry.
Rivalry among existing player:- Rivalry among existing player is high. This industry is not growing industry , growth of this industry is quite slow so there is difficulties for new entrants to be entered into industry and survive among striving companies. There are many significant brands available within this industry with which small companies are still struggling so rivalry among existing player is quite high which reduces chances to get entry for new comer. Better Drinks Company is brand which is also a great competitor for other company.
Better Drinks Company should include protein powder into their product base which will attracts new generation who are very much health conscious will consume those product without hesitation. Not only new generation health drink is essential for different age group anybody can consume protein powder with water or any other base for their betterment. This will enhance body immune system and can improve body functions. In era of environment degradation and pollution health becomes an important issue to keep it in good condition. This product will be available with different portion minerals which will be mentioning on it. In initial stage product will be available in different quantity for 100 gm to 1000 gm. This product will be available different super market and retailer. Discount will be available for quantity more than 500 gm.
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CRITICAL ANALYSIS OF HUMAN RESOURCE PRACTICES :-
HR POLICIES AND PROCESSES :-
The HR policies and processes are developed in the company for ensuring consistency, equality and safety in the workplace to employees. In general every worker reach the workplace on time and every employee want to maintain a healthy relationship with their employees. However, there are other situations, factors and circumstances that affect the interaction between employees and employers. There are many reasons for writing the HR policies and processes by the Human Resource department. Some of them are written to comply with government laws that an employer has to follow to provide safety and fair treatment to their employees. Some are written for reasons which are practical, like cutting the costs of insurance. Others are written to express solidarity with political or social movements and health. HR policies are also written down to ensure that there is no discrimination among employees on the basis of their gender, colour, race, religion, veteran status, disability, age and genetic information. Discrimination and diversity training and training of harassment are also some of the HR policies that run in the company. These policies provide rules of guidance to the managing body, ensures that Spark works having compliance with government mandates and regulations and also offer safety, security and protection to the employees.
HR INFORMATION AND TECHNOLOGY :-
HRIS or HRMS is the point of connection of the human resources and Information Technology with the help of the HR software. So this helps to take care of issues related to accounting, pay roll, human resources and management. This mostly increases the efficiency at times of decision making in the company. They also include solutions in compliance, recruiting, training and pay role. A quality HRIS system designs databases which have a wide range of features. Employees can also exchange information easily with HRIS. If Spark always invests in HRIS in proper time, it will help the company to achieve their missions, values, goals and objectives.
RECRUITMENT AND SELECTION :-
The process of attracting and finding skilful and potential resources to fill up the vacant positions in a company is what is included in the entire recruitment and selection process. Efficiency of hiring will be automatically increased if the HR team follows the five basic points of planning of recruitment, development of correct strategy, searching, screening and evaluation and control. After the hiring of the right resources the next steps are analysis of job, job description, specification of job and job evaluation.
DESIGNING OF JOB :-
Designing of job is one of the major functions of human resource management and is completely and absolutely related to job relationships and contents specifications. This is done to satisfy requirements of organization and technology along with personal and social requirements of the employer or the job holder. It deals with how the nature of a person’s job affects his personality and behaviour at work.
EMPLOYMENT RELATIONS :-
Described in a straight way, the legal link between employers and employee is employment relations. It only exists when a person gets the return of his work in the form of remuneration as a value of providing his service to the company. The existence of employment relations is the condition determining the social security law and the labour application to employees.
HEALTH AND SAFETY :-
An occupational health and safety management system (OHS) includes health and safety standards, policies, records and systems and involves incorporation of health and safety programmes and activities within the organization. It is more than just a simple health and safety programmes. Identification of hazards and controlling of risks improves the effective management within the company. The establishment of policies, providing resources, setting goals and providing the vision is managed by the senior management body. Safe work practices and procedures on risk assessment, ensures that everyone working in an organization can perform their duties and responsibilities effectively and efficiently. Health and safety instructions and training should be provided to each employee working in the firm. Employers must ensure that workers are qualified, trained and competent to perform the tasks. Employees also must work safely, according to the instructions given to them.
TRAINING AND DEVELOPMENT :-
The process of training and development of workers is an organizational activity to improve the performance and productivity of workers individually as well as in groups. It increases the knowledge and skills of the workers. Skills that the employees acquire during the training also add to the company’s asset. Enhancement of the skills provided to the employees by the process of training and development gives them job security and options of career advancement. As this is the age of technological development the need for systematic training and development increases with each passing day. Through training, specific skills are taught to the employees and through development employee’s management skills and personality are enhanced (International Labour Organization, 2019).
REWARDS AND REMUNERATION :-
The issue of remuneration and reward has always been a challenge for the organization. There is always a need for transparency and equity in pay practices. The organization has developed its own framework to manage recognition and reward practices. A strong reward strategy improves the effectiveness and quality of the decision made while addressing reward related issues within the company.
GAP ANALYSIS :-
The HR team faces problems running in the department and the continuous enactment and enforcement of policies within the company.
Retention – Many people consider recruitment and hiring of staff as the sole responsibility of the HR team, but, in general retention of the employed staffs is the actual challenge faced by them.
Recruitment – The major challenge faced by the HR department is recruitment of talent, be it complementing the existing workforce or to replace the lost staff.
Productivity – The HR team must also have a look on the productivity levels of the company. If productivity is low HR team must know whether it is due to lack of resources or poor and inefficient working practices.
Training and compliance – Training is a vital part as it affects the efficiency and skills of the workforce and develops productivity which in turn works as an asset for the company. Where training takes place inside the company recording the course attendance is necessary for the HR team to have a clear view of the work-force skills and regulatory compliance.
Health and safety – As already discussed in the previous sections of the assignment, maintenance of health and safety is necessary and unavoidable. Whenever any health issue arises, it is the responsibility of the HR to examine if the business organization has done everything that is to be done.
Discrimination and diversity – It is absolutely necessary to keep record of any incident that has taken part in the workplace as any form of discrimination. Then it can carry out future policies to avoid any such discrimination and diversity.
Discipline – The process of discipline requires a lot of proofs and the HR team needs to collect records, statements and other supporting data to resolve the issues following ethics and legal laws. Records of disciplinary issue keep records of letters between employer, trade and employee union representatives, minutes of meetings and any activities that has to be followed and undertaken.
Payroll – Payroll responsibility falls both on accounts department and the HR team often leading to issues regarding accurate payments to staff. HR team maintains the records of salary, bonuses, earnings attachment and benefits while the accounts department is given the sole responsibility of making the payments. This disconnects the potentiality thus making the payments of the wages delayed or employees receiving wrong sum of money (Sheehan, 2013).
HUMAN RESOURCES MANAGEMENT PLAN :-
RECRUITMENT AND SELECTION PLAN :-
This plan is to assist in right selection and the strategy is to select and keep the best person suitable for the job. First step is to get the selection brief appropriately. Next is to go through the candidate’s eligibility. Third, is to make a list of the shortlisted candidates. The final step is the checking process of employees with potentiality.
TRAINING AND DEVELOPMENT :-
This plan provides higher authority to have the effective output of work. It helps in the growth of the company by creating effectivity. The plan will help to improve performance, personality and skills of the existing staffs. Once the training and development plans are graphed and chalked out it must be shared and explained to the staffs. The plans must be used as a tool for the workers’ professional and personal development. The plans should not just include training programmes, but should also include activities and tasks that has to be undertaken both by the manager and the employee (HelpBoard, 2019).
REDUCTION, REALLOCATION AND RESTRUCTURING :-
This plan includes the design, execution and marketing structure of the company. Designing gives a proper idea of what kind of restructuring will be considered for future ventures. Execution deals with management of those designed plans for a positive outcome. Marketing ventures include explanation and correct portrayal of the plans to the investors for desired outcome.
From the overall study it can be concluded that Spark is the leading telecommunication provider in the country since it emerged as a privatised company with good HR management, working efficiently considering all the economic, social, political and technological factors. However, the company also has to keep in mind the ever increasing competitors emerging in the market and has to analyse the risk factors properly and make strategic planning and development to have a firm foothold over the business amidst the huge competition. The discussed points in the assignment will definitely provide a clear overview of the company’s past ventures, present business strategies and scenario and the future prospects that the company can take in order to fly sky – high as an avid leader.
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This is a sample business report of Better Drink From our experts get your report right now
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