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Suzanna's Super Quality Soft Drink
EXECUTIVE SUMMARY
The focus of this report is an outline of a situational analysis of a company that experience some problems and the management strategies to solve it. Problems that occurred includes
?Poor quality control and product quality has fallen
Cheap College Papers on Case Study
?Major occupational health and safety concerns
?Very high absenteeism and low productivity
?Increased competition in the market
?Falling share since its relocation
?Financial problems
POOR QUALITY CONTROL AND PRODUCT QUALITY HAS FALLEN
?Water quality has caused product recalls
?Relying on Sydney Quality Control
?Water filtration plant installed with continuous electronic monitor in case of staff absenteeism
?Sugar and fruit juice quality needs to be tested
?Send the final product sample and sugar sample to the Certified Quality Assurance Laboratory
WORKCOVER HAS PRODUCED A REPORT STATING THAT THE NEW SITE HAS MAJOR OCCUPATIONAL HEALTH AND SAFETY CONCERNS
EMPLOY NEEDS TO BE RESPONSIBLE FOR
?Providing safe system of work
?Ensuring safe use, handling, storage and transport of plant and substances
?Providing information, instruction, training and supervision to ensure health and safety
?Maintaining a healthy and safe workplace
STAFF RESPONSIBLE FOR
?Taking care of health and safety of others
?Co-operating with health and safety requirements
?Not interfering with or mis-using anything related to health, safety and welfare
VERY HIGH STAFF ABSENTEEISM AND VERY LOW PRODUCTIVITY
To reduce absenteeism and improve productivity must consider a few key issues.
Firstly, what are the costs and benefits?
Costs may be the increase in wage payments. This may have a cost-push inflationary effect on prices and may reduce their competitiveness. It may otherwise erode profits.
The increase in productivity may offset any increase in wages and may not affect the cost of labour. It may even make them more profitable enterprises. The negotiations may 'clear the air?between employees and employer i.e. any problems can be ironed out and changes made.
There are also other methods employers can do. These includes
1.Suggestion box employees have their own comment on the relationship between employers and employees and also on work practises.
.Job rotation leads to employee satisfaction, therefore a willingness to attend the workplace.
.Job enlargement therefore job enrichment. By giving the employee more jobs to complete, the employee feels he/she is part of the team.
4.Increase amenities/extra-curricular activities this increase morale of employees and therefore greater productivity. This can be seemed through Coca-Cola providing their staff with a canteen serving both hot and cold beverages/food.
THERE HAS BEEN INCREASED COMPETITION IN THE MARKET WHICH HAS LED TO LOST REVENUR FOR THIS BUSINESS
Soft drinks are a product that is always needed thus its life cycle is ongoing. Therefore changing the soft drinks appearance-keep up with its popularity-yet avoid 'trashy trends? too much of the same thing.
Thus rejuvenation is a key strategy. Its tangible attributes can be changed like colour, size. Change packaging once in a while, with new designs, new structures and so on.
Also the change in flavours is vital here, as the consumers can get sick of the recurring flavours.
Place
The place or distribution is very important, instead of intensive distribution aim of a selective distribution system. This selective distribution can be aimed at the normal household or little shop. If the customer feels special or advantaged for going to a special store, the customer will buy more. Whereas if it seems as only a cheap, the image will go down. We must maintain the image of a quality producer yet affordable.
PROMOTION
Advertisement is the main strategy needed here. Advertise on TV, in papers and magazines. In advertising reflect the image of a quality produced not a cheap, nasty dealer. Look to glossy pages in magazines, fun-loving ads for teenagers on TV or sophisticated ads for those affluent customers.
FALLING MARKET SHARE SINCE ITS RELOCATION
vRelocation has not been informed
v'No Sign?about it was moving to
vIt is a competitive market
Reduce prices can boost market share and also increase sales revenue.
It will boost company confidence.A marketing plan is beneficial as it maps out strengths, weaknesses, opportunities, threats on the industry it is in. it also puts ideas on paper makes it clearer to understand and implement. It can also provide a control, evaluation of performance along the marketing plan. Benefits of a successful marketing plan include a greater share of market, more profits, quality of product and so on.
Provides a direction, a goal a business should be aiming for.
SWOT ANALYSIS
1)Maximise strengths
)Minimise weaknesses
)Exploit opportunities
4)Neutralise of get rid of threats
Strengths
-Good reputation.
-Good relationship with distributors, suppliers and customers.
-Capitalise on fashion and also keep prices affordable, as there are plenty of other cheap ones.
-Popular products, very good sale for 7 years until 18. The sales expanded by word of mouth, local marketing ads, effective local marketing, and samples; sell to school canteens and sales increasing.
Weaknesses
-Equipment outdated.
-While the company have a good reputation there are still many customers who do not know of their services.
-Problems with some of the trade debtor in collecting accounts receivable.
-Make sure price does not become stagnant and make sure price does change however according to necessary levels.
-Cash flow problems prevent the early payments of invoices to obtain a discount.
Opportunities
-Flexible product, new line, individual ideas.
-Cheaper, low quality imitations.
-Open new market by sample distribution (offering free samples) attracting customers.
Threats
-Competition from a new company start advertising the similar products.
-The rival company is signing contracts with restaurants and sporting venues to only sell their brand.
-Increasing number of competitors.
-Cheaper, low quality imitations.
FINANCIAL PROBLEMS OCCURING AND LAST MONTH A LARGE CREDITOR DEMANDED PAYMENT ON AN OVERDUE LOAN
-Keep the shop in 'GOOD REPUTATION?position.
-Negotiate an extension of the loan.
-Refinance the loan.
-Keep monthly sales graph various other records i.e. cash flow reports
-Profit and loss statements
-Cost benefit analysis etc
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