Marketing Plan for Coconut Drinking Water
I have just recently finished our B.com (Hon’s) program. I choose entrepreneurship as my career because it more dignified than any government and non government service as well. That are why I have prepared there marketing plan. I will use there marketing plan to launch a company of coconut soft drink. I have used some secondary sources to collect information. Marketing manager pran cola that were help me a lot with hare sagacious opinion while preparing there report.
Vision and Mission of the Company
The vision and mission is very much important to run a business properly, to market a product properly. It plays a vital role of everything because without vision and mission, no business can go ahead. I prepared this Marketing Plan on Coconut. I am also vision and mission. My vision and mission is to produce a better quality and healthy soft drink and distribute it at a lower price into the market. The main target of the company is to attain the profitability to the better services and also wants to exist in the soft drink market for the long-term perspective.
Since the business is production oriented the company will try to find variety of production facility. First of all the company will try to achieve high production efficiency to produce huge amount of product because if I am able toproduce huge amount of product, I shall be able to market more products. When I shall market more products, there will be a great possibility to earn more profit. Low cost will be another production facility of the company. I shall try to maintain low cost by cutting unnecessary overhead cost. Because I shall market our product at lower price and if we are able to maintain the cost of our product low, there will be a great chance to capture the market easily. The company will go for the product availability into the market. It is another kind of production facility because consumer will easily get the product in the market for product availability. When product will be available in the market, there will be a great chance to sell the more products. Another production facility of the company will be easy production process. For this company can use new technology.
Products of the Company
Product is heart of a company. Product plays an important role to run a business properly because consumer will evaluate the company by justifying its product. So product size, product quality, product price, everything must be reasonable. Otherwise company will fail to market its product properly. The product, Coconut soft drink will be characterized by a lot of features. The product of the company will be superior in quality and healthy. It will also be very attractive to look because the company will market its product with nice packaging to attract the consumers. The size of the product will be suitable. It will neither too large nor too small. The company will maintain product variety. The company will produce 2 litters, 1.5 litters, 1 litter, and 250 bottle of soft drink. The company’s product size, design, packaging will be attractive and also innovative to attract the customers. The company will give thewarranties about their product. Consumers will get the preference to give their comment about the product from the company. If the product is bad, company will compensate for that.
Form of Ownership and Identification of the Owner
It is very important to form ownership before start marketing a product, because without ownership business can not think its future development. Ownership plays an important role to run a business properly. They invest necessary money. Sometimes they collect require money in crisis situation. The business of Coconut soft drink will be no general partnership. I am only one partner on my Coconut soft drink business. I shall invest amount of money and will take responsibility and risk for profit and lose of my business.
In the present market, there are a lots of soft drink producer. It is also true that there is an opportunity to enter in this market to gain market share. That is why the company has analyzed the environment of the present market of soft drink so that it can make more profits and can minimize the risk.
Current business Trend
At present there are lots of soft drink companies in the market, like Coca-Cola, Pepsi. RC Cola, Pran and many others. They are producing and distributing different kinds of soft drink and they are taking different marketing strategies to capture the market. Sometimes they are following the quality, sometimes they are following to keep the price low, and sometimes they are following high promotional activities to promote their product. Actually there is no fixed marketing strategy of the present soft drink companies. Because the environment is changing and people are also changing in their mind, in their behavior, in their attitude, in their perception. So the present soft drink companies are taking their marketing strategies based upon the situation. Among the lots of soft drink companies, some companies are well established in the market and they are doing their business very well. On the other hand some companies are not well established in the market. At present there is also lots of competition among the soft drink companies and continuously they are trying to set up the new strategy to capture the market. Actually the present soft drink market is very competitive. Although it is a very competitive market for the soft drink company but a new company like Coconut soft drink coming up with a innovative product by offering the better customers So it can compete with the competitor in the soft drink market by its own marketing strategy.
Marketing environment is a very important factor to analyze for launching a business. There are some factors that are involved in the marketing environment. Different factors of marketing environment are described below.
The rate of growth is a country’s or region economy can have a significant impact on a company’s marketing efforts. A high rate of growth means the economy in a country or region is usually strong and the marketing potential large of prime significance to marketers is the perceptions of consumers regarding the economy. If they believe the economy will be poor they may cut back. On the other hand if they believe the economy will be favorable they may increase spending.
Technological factors are very much important to run the business properly. Because technological factors sometimes affect marketing in several way. Such as technology advances vary through out the world, foreign workers must often be trained to operate and maintain equipment unfamiliar to them, problems occur if maintenance standards or practices vary by country or adverse production condition exist. On the other hand technological advances are facilitating the growth of marketing. These advances are in such areas as communications, order processing transactions and production.
Political conditions are very important to consider running a business properly. Because political stability, influence trade barriers, trade incentives, multination trade groups and many other things affect to do the business. So everybody should think about the political environment to run a business properly, to market a product properly.
Laws and Regulations
All over the world government rules and regulations have a great impact on marketing practices by placing restrictions on specified activities. So government rules and regulation must be considered.
Socio-culture conditions have great impact of marketing. A culture consists of a group of people, sharing a distinctive heritage. This heritage teaches behavior standards, language, life styles and goals. All these things are influence the consumers buying attitude. So socio-cultural environment also has to be considered.
The competitive environment often affects a company marketing efforts and its success in attracting a target market. There is lots of soft drink Company in the market as a competitor. So the company needs to analyze the marketing statistics, company size, generic company size, generic competition, and channel competition.
Target market is very important for the every company. Because once a firm has analyzed its environment and all others business related things, it has to evaluate the various segments and decide how many or which ones to target. That is why every company has target market. The target market of the all most every existing soft drink company in the market is all over the country, even the rural area. But most of them focus mainly on big cities. Every company does not follow the same strategy to target their market. Different companies follow different strategy to target their market.
Every company has some uniqueness to target their market. Some companies focus on location to target their market. They focus on the suitable area and the standard of living of that area’s people. Some companies focus on the density of the population to target their market. They think that more people mean more products will be sold. Some companies target their market according to the market demand. They target some are in which the demand of soft drink are very high. But one thing is very similar that almost all the existing soft drink companies target same customers. All most every company’s target customers are quite same. Their target customers are almost all the people with all income level.
In this situation, at first Coconut soft drink Company’s target market will be some big cities Dhaka, Chittagong, Rajshahi etc. When the company will be able to capture this city, it will think to go all over the country. In the target market, all income level people will be the target customer of the soft drink.
Current Marketing Objectives
To be successful in the business, marketing objectives are very much important. Without a proper and organized marketing objective, no company can reach the goals. At present, the overall marketing objectives of the existing soft drink company in the market are to produce good quality product, supply the product in the market at lower price. They will also want to capture the market and want to win the leadership in the soft drink market. The company can win the leadership by providing the better customers services.
If we look at the marketing environment, it will be clear to me that every company has some strength, weaknesses, opportunities and treats in the market. I have analyzed the marketing environment of soft drink. After that I have also found our some strengths, weaknesses, opportunities and treats for us to launch the soft drink company.
After analyzing the present market condition, I have got the following strengths, which will be favorable to us to launch our business.
ü Brand Name Reputation
Brand name is very much important because it symbolize a company’s reputation. I choose Coconut as brand name because the name conveys every person’s feelings. When anyone pronounces this name unintentionally he will feel very every person. As Coconut melts very fast so I conveys another meaning that it will melts its consumers’ thirst by melting it self. I hope I shall be able to hold the brand name reputation in the soft drink market in Bangladesh.
ü Better Quality
Coconut soft drink is very much quality product rather than other companies’ product. The company will achieve a great reputation for the quality assurance. The company always tries to hold the quality of the product. Customers believe the quality of the product so Coconut always gives the quality products to their ultimate customers.
ü Strong Management Teams
The management of the Coconut is very much skilled. Most of the management peoples are very much expert which is the great strength side for this company. As it is a home-based company, the company will hire some marketing expertise from some other countries. The management of Coconut Bangladesh is very much strong.
ü Appropriate Management Style
As it is a local company the company has an appropriate management style. The company always tries to take decision from the top-level management through the appropriate management system. If there is any problem occurs in the management, company always try to get rid of that problems and immediately will take the right decision for doing the effective marketing in Bangladesh.
ü Appropriate Organizational Structure
As Coconut is a home-based company doing the business in Bangladesh, I have appropriate organizational structure. Organizational structure will be developed by the local and foreign expertise.
ü Profit margin Will Increase
Obviously the company will gain profit if their supply is more. Supply can be more if the company uses the effective distribution channel.
ü Increase Market Share
As it is a new company in Bangladesh the company has the great chance to increase the market share through the effective marketing. If the total sales volume will increase then the total market share will increase also. Market shares depend on the total sales volume.
The weakness of my firm is as follows.
ü Less Production Plant
Although Coconut soft drink is a local company but in there I have the few production plant. As a result the company will unable to produce a large number of products. That is why the company cannot provide a large number of products to their customer.
ü Do Not have Research and Development Department
Coconut soft drink Company does not have research and development department center so that they cannot ensure about its competitive market as well as customer needs and wants, because they could not properly define it’s problems and cannot able to make any solution. If, they want to produce developed and upgrade product and positioning in competitive market then I have to face many problem.
ü Inaduquate Human Resource
Coconut soft drink Company does not have an adequate human resource management so that it has to encounter about their employees as well as recruitment. And it could not develop personnel department. So that it cannot properly train up to its employee and motivate its employees to give them reward.
ü Less of Productivity
The rate at which goods and services are created as called productivity. The company has the less production capacity because as it is a new soft drink company in Bangladesh. So the company will not produce a large number of products in the every year. As a result they cannot cover the soft drink market by a narrow productivity.
Looking at current marketing environment, I have found out the following opportunities that will be favorable to launch our soft drink in the market.
ü More Market Share
A company’s market share is its percentage of the total industry sales in the geographical area where it sales its product. Maintaining or increasing market share is a common pricing objective. Coconut Soft Drink Company will capture a larger market share that is a great opportunity for this company. Many firms use market share figures to assess their performance. An increase in sales may help a company reduce production costs and achieves higher profits since it is cheaper on a per unit basis to produce more goods or offer more services. Firms some times lower prices try to capture a larger share of the market.
ü Scope of Merge with Other Beverage Industry of Bangladesh
As it is a new company in Bangladesh I have the great chance to merge with other existing company in Bangladesh. If they merge with other company then their financial position will be strong as well as management also. Negotiation can reach the company in a better position. For their long-term success they can merge with each other.
ü Chance to Build More Production Plant
Though it is a parent company but it has less number of production plants in Bangladesh. For taking the more market share and sales the company should build more production plant in the major cities in Bangladesh to cover their target market.
ü Chance to Builds a Good Brand Image
Coconut soft drink has a chance to build a good brand image. If can build a good brand image then be able to very much well known company in the Bangladesh. Brand name is very much important because it symbolize a company’s reputation.
The following factors may occur as unfavorable condition to us to launch our soft drink in the market.
ü Threat of New Entrants
New entrants to an industry pose several threats to existing competitors. New competitors can reduce the market share of all participants by dividing the “pie” into more pieces. He also may bring new technology or greater resources not available to present competitors and achieve a high market share position quickly to the detriment of all existing participants. So if any new entrants will be big threat for the company.
ü Government Support
Government support is very much important for a company to do the effective business in any country. Without government support any company cannot run any business. So if the company does not get the government support then it will be very much difficult for the company to do the business in Bangladesh.
ü Technological Change
It is true that technology makes our life easy and convenient to every situation. But sometimes it becomes harmful for a business. Sometimes technology comes as a big competitor. In soft drink market if any company comes with any new technological development rather than Coconut soft drink company then it will be very much difficult for the company to coup with the new technological development. Once a game developed then another will come in a better way with the help of technology.
ü Preference Diversity
Every states or geographical areas have its particular character preference. So it is very difficult for Coconut soft drink Company to position a particular product in different region or geographical area. One group may like a particular type of product. In the other hand, other group may prefer another particular type of products. If the company cannot hold the preference diversity then it will be great problem for the company to exist in the soft drink market in Bangladesh.
ü Government Rules and Regulation
Each country or state has its own regulation and tax policies, which made it cumbersome to do business in host country. So government’s rule and regulation can be a barrier for Coconut soft drink Company.
ü Political Unrest
Now-a-days political unrest becomes common phenomenon in a nation as well as the whole world. World is place of intense political unrest. So, political unrest can be harmful for Coconut soft drink Company. World political problem become so intense that foreign operation of a particular organization are under in intense pressure.
ü Changes Buyers’ Habit
Buyers’ habits are changing with the change of time. Buyers are always looking for having products in some different ways. So changing buyers’ needs and habits can be harmful for Coconut Soft Drink Company. If consumers want the innovative product but Coconut soft drink of Bangladesh is unable to give them new product to their customers the customer may switch from their product.
ü Financial Risk
Financial risk is the part of every business. Substantial nonrefundable advance licensing fees and significant advertising expenses can be termed as a financial risk for a business. Moreover, new competitor can offer products in lower price. It can also be the reason for financial risk for the new Coconut soft drink company in Bangladesh.
ü Economic Change
Changes in economic circumstances can be harmful for the Coconut soft drink company. Personal income, savings, employment, and price level trends can have dramatic effects on the attractiveness of a firm’s products or services in output markets not only final markets, but intermediate markets as well. Economic recession may occur and it may cause great loss for the Company in Bangladesh.
ü Threat of Substitute Products
Manufacturers of products and suppliers of services must constantly scan their environments for the potential emergence of substitutes. The most dangerous substitutes are those that show potential for improving price -performance trade -offs and those made the firms or industries earning high profits. In this case, strategies must be formulated to protect against displacement by the substitute product. Many companies may offer innovative product with low price rather than Coconut soft drink Company then it will be the great problem for the company to exist in the current market.
Coconut Soft Drink Company wants to survive in the market for the long time. Not only has this company wanted to survive, but also wants to become the leader among the soft drink company. Coconut Soft Drink Company has several marketing objectives.
The first objective of this company is to market profit legally.
ü Sales Revenue
If profits are acceptable, the company will increase its sales level. The top management of the company will decide how much sales will increase based on the situation.
ü Provide Superior Customer Service
Provide superior customer service is one of the most major objectives of this company. Because the company believes that customer is the boss.
ü Provide Superior Customer Service
Provide superior customer service is one of the most major objectives of this company. Because the company believes that customer is the boss.
ü Keep Customer Loyalty
One of the majors marketing objective of Coconut Drink Company is to keep a high level of customer loyalty. Because the company believes that loyal customers do indirect marketing.
ü Market Share
When the status of the company will be high and the company will take a opinion leader for the soft dink company, it will increase its market share.
ü Unit Sales
When the sales revenue will be decreasing because of the effects of inflation, the companies will chose to increase the number of units of its sells.
ü Provide Quality Product
The Company will always try to provide better quality product to the customer to survive in the market for a long run.
ü Reasonable Price
To provide the product at reasonable price is another marketing objective of Coconut soft drink Company. Because company want to get maximum customer in the market.
Now the world is globalizing. In this globalize world I need to adapt a strong marketing strategy to survive. This is why I have developed the following strategy that will be adapted to launch and to survive in this competitive world.
The most important issue in the globalize world is customer. It is also the heart of any business. This is why the market should be segmented correctly and then according to the company’s structure, product, growth, attractiveness etc. target market should be selected.
6.1.1. Developing Differentiation Strategy
For marketing the product, the company will develop differentiation strategy by segmentation the geographic area, demographic area, and psychographics area.
ü To Establish New Production Plant in Dhaka City
Coconut Drink Company will establish new production plant for producing plastic container. Because plastic bottle will be used for once time. That is why customers will feel happy to buy the product. Another thing is that the existing soft drink companies in the market are supplying their product in the plastic container. So to compete with the competitor Coconut soft drink company will establish more than one Plant in the Dhaka city.
ü Expand Production Plant in Domestically
Coconut Soft Drink Company will expand its production plant in domestically. Other wise they will not fill-up targeted sales. If it fails to expand its production plant in domestically, it can not compete with the competitor. Because the existing company in the market have production plant in out side of the Dhaka city. So if it wants to establish more customers it has to go to expand their production plant.
ü Downsizing Older Business
Coconut Soft Drink Company must not only develop new business but also carefully prune, harvest or divest tried old business in order to relies needed resources and reduce cost. Weak business requires disproportionate amount of managerial attention. Managers should focus on a company’s growth opportunities, not freighter away energy and resources trying to salvage businesses.
ü Diversification Growth
Diversification growth makes sense when good opportunities are found outside the present business. A good opportunity is one in which the industry is highly attractive and company has the mix of business strength to be successful. The company could seek product that have technological and or marketing synergies with existing products line, even though the new product themselves may appeal to a different group of customers. Second the company might search new product that could appeal its current customers even though the new products are technologically unrelated to its current product line. Coconut Soft Drink Company will focus this strategy for differentiation strategy.
The Coconut Soft Drink Company will position its product in different ways such as positioning based on a specific attributes, positioning with respect to user, positioning with respect to consumers, positioning with respect to marketing mix elements.
ü Positioning with Respect to Consumers
The Company will collect the information from the consumer. The companies will interpret the consumer’s satisfaction and dissatisfaction, emotion about the product. After analyzing this company will position its product because costumers are the bosses to the Coconut Soft Drink Company.
ü Positioning with Respect to Competitors
There are many competitors in the market already. The company will look for the competitor’s action towards the product. That means the company will look what benefits the competitors give, what is the position of the competitors in the market, what strategy the competitors are following. After analyzing this company will position its product.
ü Positioning with Respect to Marketing Mix Elements
Price is one of the key elements in positioning generic products as well as branded products. So the company will focus on price to position the products. The company will position its product in the market by taking reasonable price. Packaging could be another variable. Company will provide the product in the market through nice packaging so that the product can easily capture the consumer mind. The company will produce different size product because the size of the product is very important to position the product. Different size product will capture the different income level consumer. Quality is the important to position the product. The company will position its product by providing good quality.
The most important thing for any business is marketing mix. The growth, productivity, profitability, market share all these things depend on the marketing mix. Marketing mix consists of four Ps. The four Ps are product, price, place and promotion. Here place indicates distribution. I have also focused on the four Ps that will be adapted to launch our soft drink in the competitive market greatly.
The Coconut Soft Drink is a production-oriented company. The product of the company will be soft drink. The product will be good in quality and lower price. At first the company will try to produce quality product and will try to maintain the quality of the product because customers always favor the quality product. They want quality product but do not pay more money which is the theme of production oriented concept. That is why the Coconut Soft Drink Company will emphasize on production and distribution efficiency that will enable the company to make the product available in affordable price. For this company will appoint some experts and will use appropriate technology. The product will contain carbonated water, sugar, natural flavor and caffeine. The company will also think about the product size, packaging. The product will be different size. The company will produce 1 Liter, 1.5 Liter, 2 Liter and 250 ml pet bottle of the product. The packaging of the product will be very attractive so that the consumer feels good to see the product.
Since the target customers of the company are all income level people. So the price of the product will be sensitive that means the price will be neither too much nor to less. Actually the company will try to fix up the price in terms of product quality as well as the competitors price. Actually the price of the product will be different in terms of the product size because the company will produce different size of product. Even the price of the product will be less than other competitive product.
The price lists of product are given in the below:
Product size Price
250 ml 10 Taka
1 Liter 30 Taka
1.5 Liter 40 Taka
2 Liter 50 Taka
The Coconut Soft Drink Company will go for the different promotional activities to capture the market because during the launching of a new product in the market, high promotional activities are required.
There is a sentence in business language that ” Advertising tells, marketing sells”. Without effective advertisement a marketer can not promote his product. That is why the company will go for the proper advertisement to take the leadership in the soft drink market. At the very beginning Coconut Soft Drink Company will follow TV, newspaper, and billboard advertise for the promotional activities. Company will also give the advertisement the radio to capture the rural area customers. When the product will be in good position in the market then the company will give the advertisement in the Internet. Some times company will give the sponsorship to arrange some cricket tournament for the promotional activities of the product. Some times the company will give some reward to the customers.
ü Sales Promotion
The Coconut Soft Drink Company will step up sales promotion – trade deals, cents off coupons, guarantees, gifts, etc. For increasing the sales promotion, Coconut Soft Drink Company can go for sales forces, public relations, and he can also go for direct marketing. All the promotional activities can reach the company in a better position in the soft drink market.
ü Personal Selling
The Coconut Soft Drink Company will increase the number of sales people to distribute its product to customers. Sometimes it will change its specialized sales force to increase the activities of the sales force. Sometimes it will revise its territories.
The company will speed up its delivery to distribute its product to the customers quickly. It can extend more technical assistance to customers. Customers always look for better service. So if the company gives the proper service to their ultimate customers, then the customers will be able to purchase the product more and, more rather than other competitors. In this way the will company will follow the promotional activities for marketing the product.
The Coconut Soft Drink Company will appoint distributors, wholesalers and agents in different city and district. Company will obtains more product support and display in existing outlets. The company will have distribution channels because through the distribution channels the company’s sales people will market the product. For distributing the product, the Coconut Soft Drink Company will use its own transportations. In this case, if the company uses its own transportation, the company will save, its transportation cost.
To survive in this globalize world, the company will implement our all strategies to my Coconut in the soft drink market smoothly and I shall control all these things carefully.
At first the company will produce good quality product and the product will be marketed at reasonable price. To capture the market, the company will give advertisement in newspaper, TV, radio and billboard. Sometimes company will sponsor cricket matches and other social activities. As a result a large number of people will be aware about the company’s product. To market the product company will appoint some agent in big cities. The company will provide their product to the agent and the agent will provide the product in different level. To maintain this company will use some vehicles. The company will also allow keeping some whole sellers, retailers. Company’s excellent management team will look after all these activities. The company will establish a strong marketing management team, marketing directors, executive, area manager and some other position will include under the marketing team.
Activities and Responsibilities
Any organization involves with many activities that should be carried out carefully and all the responsibilities of different activities should be clear so that the business goes ahead in right trace. That means it should be clear that who will report to whom and what activity will be carried out by whom. That is why the company has clarified all the activities and responsibilities.
The Company will follow a strong management hierarchy. Actually management hierarchy is top the level of management with in an organization. Without a strong management hierarchy an organization cannot run properly. Top-level management is the decision maker of an organization. Decision can be taken from the top level or down level management.
ü Managing Director
Managing director is the top post of this company. I shall manage the whole activities of the company. Under managing director there are marketing director, production director, finance director, quality assurance director and personal manager.
ü Marketing Manager
Marketing Manager will controlled the over all marketing activities. Under marketing Manager there are national distribution and logistic manager and sales manager. The entire marketing manager will give the marketing information to the marketing manager and the marketing Manager will take the right decision by discussing with the other department of the organization. It is the marketing Manager’s responsibility is to gathering the marketing information, analyzing and evaluating the marketing information and will go for implementation.
ü Production Manager
Production Manager will control coordinated all the activities that are related to the production. He always controls the production department of an organization. He gives the production information. How much unit of products will produce in the production department and what will be the production cost and what will be the per unit cost and where the raw material will be collected, every thing production manager will discuss everything.
ü Financial Manager
The financial Manager will control the whole finance sector. The financial Manager will control, monitor the activities of his or her subordinate. He is responsible for every work that is related to finance. Such as profit and loss statement, inventory etc. All the financial transactions will be dealing by the financial Manager. Financial Manager will control the overall finance department. He / she will give the suggestion that how much money will be spent in the production department, how much will be spent in the marketing department. What will be estimate production cost and what will be the profit margin. All the financial information will control by the financial Manager. That is why it is called that finance is the blood of an organization.
ü Quality Assurance Manager
Quality assurance Manager is the critical part of the organization. Because the companies aim is to produce good quality product. Quality assurance Manager is responsible to maintain the quality of the product. He is also responsible for looking after these subordinate activities. Quality director always give emphasis on the quality of the product. If the quality is not maintained properly he/ she always try keeping the quality standard. And always try to motivate the workers of an organization.
ü Training Manager
Training manager is directly accountable to marketing manager. He is responsible to operate the entire training program of field executive. Training manager trains the field executives about their duties and responsibilities of the overall job. Environmental changes will continue to shift employment from some occupation to others will contribute to rise in productivity.
ü Area Executive
The Company will market its product all over the country. Area executive is responsible for handling the activities of field executive. He will always keep the record of everyday sales and inform to the marketing manager.
To ensure the performance standard Coconut Soft Drink Company will take some steps:
ü To Provide Training Program for Employees
Coconut Soft Drink Company will provide an initiate training program for its employees. By providing training program for the employees, it will ensure its standard. To become a better performer, it will make a training program so that its employees get trained up and they can perform better to use their own knowledge and skill. When employees are trained up the output of organization will be good.
ü New Product Development
Coconut Soft Drink Company will always emphasis to develop new products to compete with others. And always forecast futuristic market what type of product should be produced for demanding their customer needs. If they want to produce new type of products they should provide new technology and experts.
ü Process Development
The Company has to develop its process and procedure. In general, the dynamic of competition among firms in hi-tech industries encourages significant allocation to each employee’s and development operation. In fact, as the number of competitor’s increases in industries, so it will modify its process and procedure.
ü Use Updated Technology
There is substitute of updated technology in doing any kind of business. All most all of the multinational companies are doing business by using updated technology. Since the Company wants to receive some multinational operations, so it will use updated technology in its daily operation to ensure the standard.
ü Use Consensus Decision Making
The Company will give some training to their employee to make them effective in order to cope with the changing environment. Here no employer of the company will be allowed to take participate in the decision process. Only I shall give the instruction to the employees and based on the requirements, employees will take decision to reach the target that has been set by the employee. In this regard all employee will consider that at least 60 % will give their consent in order make a decision.
Monitoring and Control
To ensure the monitoring procedure the Company will take some steps:
ü Stabilize the Operation
The Company will stabilize in its operation. Unstable operation cannot make a business. Operation will be strait-ward other wise it cannot makes profit for doing unstable operation. Subordinates accept that bosses have power because they are bosses and not just because it is competent-although may be. And employees do a job a particular way because the boss want it that way not because employees believe it is the best way.
ü Augment the Distribution Channel
The company will augment the distribution channel for cutting its distribution cost and to serve its product just in time to its customers and also it will minimize its transportation cost. In this way Coconut Soft Drink Company will monitor its procedure.
ü Improving Quality
The quality of the product will be improved. Otherwise it cannot get competitive advantage and also it cannot position in global market. Quality of the product can make a good reputation on its Business as well as help to monitor procedure.
ü Providing Competitive Salary
Employees are the center of all kind of organization. If employees remain the motivated, then nothing will be achieved. In this regard the company will give competitive salary to its employees in order to make them motivated. If the employees are motivated, they will give more effort and how much work will they done can be easily monitored.
ü Develop Better Relationship with Suppliers
The overall success of any company largely depends on the mood of suppliers. If the suppliers do not supply the raw materials on time, it will be very difficult to provide better service to the customers. So the company will develop better relationship with their suppliers to have raw material on time.
The company should provide proper financial management. If he can properly manage its financial data it has to encounter that about its overall view of organizational condition. So, it should properly manage to take any decision about cash management, asset management, working capital management, and also management of accounts receivable.
Managerial finance is concerned with the future and the making of decisions based upon forces information; this is contrast to financial accounting which is primary concerned which historic values and transactions. Every one should keep in mind that managerial finance; financial accounting and cost accounting are, in fact, overlapping areas. Cash management, its management is very important. It is a most liquid asset. It needs to be managed most effectively and efficiency. Otherwise, a firm will be deprived of the advantages of holding cash and near-cash assets. Effective cash management encompasses proper management of cash inflow and out flow. Working capital management covers the management of cash, marketable securities, accounts receivable, inventory, creditors and payables. It has to know what is the appropriate account of current assets for the firm to carry, both in total and for each specific accounts, and how should current assets be financed. The reason is that the efficient working capital management is important form the point of view of both liquidity and profitability.
Accountants of Coconut Drink Company will forecast of and revenue in tax planning to analyze the past data. They should analyze the past data to forecast futuristic decision about their revenue for tax planning as well as make a report to know for others. The personnel department will forecast about their recruitment of new employees and other changes in the work force. The forecaster should use seasonal past data and follow Regression model to take a futuristic decision. When I recruitment their employees and when I cut employees. The financial manager will forecast to use the past financial data for taking futuristic decision.
|Sources of Funds:|
|Personal funds invested||24,00,000|
|Uses of funds:|
|Computer, peripheral and software||70,000|
|Miscellaneous furniture and fixtures||1,00,000|