Javo Beverage Company
Introduction
Javo Company plan is to come up with eco-friendly cups as a way to minimize environmental waste. This is because the safety of the environment is a concern to all consumers and employees which is why the company plans to develop the eco-friendly cups for the sake of consumers. Javo Beverage company is known for offering quality coffee products to its consumers. The objectives of Javo company new products development is to come up with cups that will be consumers friendly as well as eco-friendly which will be a way to meet the needs of the users. Different strategies will be employed in identification and realization of objectives, measures, and targets.
Strategies and Tactics
Javo applies some strategies that improve the brand in the market. It applies the use of “bag-in-a-box” system where restaurants and hotels make orders of fresh coffee. The coffee that is supplied to these places does not undergo any brewing processes and therefore makes it suitable for the users which is a strength for the company. Javo ensures that it makes and markets specialized products that are strongly aimed at meeting the needs of the consumer market. Among the products are the environmentally friendly coffee cups which will be appreciated by consumers as they can be disposed of without any effect on the environment. The company has invested in quality research and development in the field of coffee production, and this has enabled them to make quality coffee and related products. This knowledge will be implemented to ensure that the cups that will be developed meet consumers taste. Javo Company uses diversity which allows for an improved business performance hence a high level of growth and expansion. During the peak seasons, there is a compelling presentation of the brand and users are ensured of getting it when they want, and this has gone a long way towards enabling the company makes more sales hence high marginal profits. The new division regarding eco-friendly coffee cups is another strategy that will allow the company improves its brand in the market. Consumers will be happy and satisfied in that the firm will avail coffee cups that are safe to the environment hence reducing pollution.
To meet the target market for the eco-friendly cups, Javo Company will use different marketing strategies to enable its consumers to realize the new products in the market. One of the strategies that the new production will use is giving free samples to wholesalers so that they can test the effectiveness of the eco-friendly cups. The samples will also be given to any passerby who will pass near the coffee shops so that the new cups can be introduced to the buyers. This can be accompanied by word of mouth which will be done by the agents of the company.
Javo Company should ensure that it has appealing Storefronts. The stores should be appealing to any customers who are passing by where billboards will also be used to advertise the new cups to any person passing by. This will be a way to introduce the cups in the market where the people will be attracted by the storefront which will make them enquire more about the new products. Word of mouth will be used to all people passing near the coffee stores which will create awareness of the new coffee cups in the market. Samples will also be given to people passing near the stores so that they can test the effectiveness of the cups.
Social Media marketing
Despite the fact that all businesses market their products online, Javo Coffee Production has new opportunities to interact with their customers online. This is because most of the coffee customers and employees use social media such as Facebook, Twitter, and Instagram which makes it easy for the company to engage the consumers online. Javo Company will use social media marketing strategy to reach its consumers and to inform them of the new eco-friendly cups in the market. YouTube video will also be used to inform consumers of the new coffee products in the market. This is not a common trend for most businesses, but a single video can be appreciated by consumers who will show the willingness to purchase eco-friendly coffee cups.
When engaging consumers online, the marketers will apply human nature rather than being the company so that there is a free interaction between the company and the consumers. This will enlighten the company on any improvement required for their cups to make them more accepted in the market. The Company will ensure consistent posts regarding the eco-friendly cups so that the consumers and the target group can learn more regarding the cups. This will increase acceptance to the cups which will be profitable to the company.
The use of community outreach will help the company reach many consumers in the target market. This is where the company will sponsor and participate in local events so that they can promote the new cups to the consumers in the market. This also builds a strong relationship between the company and the neighborhood which will facilitate the introduction of the eco-friendly coffee cups in the market.
Javo Company will use customer reviews as a way to market the environmental friendly cups. Review sites such as Yelp guide on the feeling of consumers towards the newly introduced product in the market. The more the product is reviewed by consumers, the higher the chances that it will create awareness to more consumers which attract profit for the organizations. The Company will use Customer Reviews to know how well the cups are accepted in the market by asking them to leave comments after the review. When a company encourages customer reviews, more customers will give their reviews which can be used to upgrade on the cups so that they meet the needs of consumers.
Information technology is among the strategy and tactics that will be used in creating awareness of the eco-friendly coffee cups. Email marketing is among the information technology that will be used by Javo Beverage Company in creating awareness of the new division which will be dealing with eco-friendly cups. Internet will also be used to share the details of the environmental friendly cups, reviews, photos, and videos which will engage customers. Information technology will be used by potential customers to learn more about the new division of the company so that they can retain their loyalty to the eco-friendly cups after introduction. Digital signage will also be used to allow the new division captures the attention of the customers which will enable the company to market the cups to the consumers. This will be effective marketing way which will enable consumes adapt to changes new coffee cups in the market. The use of In-store marketing provides consumers with real-time information which will be helpful in deciding the benefits of the new products.
The use of social media will be embraced by the Javo Beverage company in the marketing of the new division and the products it has to offer. It is one of the easier way to communicate information regarding the eco-friendly cups as well as the price with which the cups will be sold at. This will be through televisions, radio and mobile phones which will create awareness to potential consumers. This strategy will enable the company to share product information with consumers as well as competitor organizations.
Methods to Monitor and Control Strategic Plan
For Javo Beverage Company new division to achieve its strategic plan, its progress must be measured and monitored. This will be a way to ensure effective action done for the organization. The methods that the company will use to monitor and control its strategic plan include developing a tracking system, the creation of plan review dates and coordinating business and marketing plans. A strategic business plan has goals that should be achieved to make the company meet its goals. Developing a tracking system will enable the organization knows its position regarding the business plan. If the business plan objective is to achieve a certain profit per month, tracking of daily profit will guide on the expected monthly profit. This method will allow the company to know whether it is headed in the right direction or changes are required so that it can meet its optimal profit. A tracking system will also enable the company to know its position in the market and competition that is likely to face the company. This enables the company to meet operational as well as financial goals which are the major objectives of a strategic plan. A good tracking system of the strategic plan enables the company to know areas that require change so that resources are not spent on the area which can be wasteful. The changes made enables the strategic plan meet its operation as well as financial objectives of the company.
Creating plan review dates is another method that will ensure that the strategic plan is monitored and controlled. Any strategic business plan should be reviewed on a regular basis so that it can capture all the changes that are experienced during the execution and implementation process. Since the new division will be dealing with a new product in the market, reviewing of the strategic plan is required so that all the needs of consumers are met in all stages. The review dates should be aligned with the short-term and long-term goals which are included in the business plans. They should frequently be made either on a weekly basis, monthly or annual review. The progress of the plan should be discussed in line with the objectives of the plan to see whether changes are required in the strategic plan. In case any change is needed, it should be implemented so that the plan can achieve long-term goals. This ensures that no finances are used for the illegal purpose as the strategic plan meets its operational and financial goals.
The third method is coordination of business and marketing plans which are part of monitoring the goals and plans for the business. Reviewing the marketing plans and business plan will help in monitoring and controlling strategic plan because they are related ad when one changes, it can affect the other one. Checking whether the business and marketing plan are well coordinating will be a way to ensure that the business plan is on track. The business plan and marketing plan should always be in line with each other failure to which a revision should be done so that strategic goal is met. This method will enable the new division meet its goals financially and operationally because a poor marketing plan and business plan can lead to wastage of resources which means the objectives will not be met. When the marketing plan does not coordinate with a business plan, implementation of the strategic plan will not be effective as it will not meet the stated objectives. This means it will not meet operational goals which are the target of a strategic plan.
Evaluation of Strategic Plan
When evaluating the strategic plan, internal and external forces that influence its execution should be considered as well as measuring company performance and determining the appropriate corrective measures. A strategic plan is believed to be effective if it conquers the internal and external forces that face it. Strategy evaluation begins with examining of internal forces that can influence the ability of a company to follow a strategic plan. The resources of the company, people within the company and proprietors are among the internal forces that should be evaluated as they affect the goal of the company. They are the internal forces that determine the success or failure of a company strategic plan. Evaluating the value of company resources and the information available to guide the success of the company enables one to know what is required for the success of the new division. The value of company resources will indicate how successful the strategic plan is or will indicate the failure of the strategic plan.
Considering the external forces influencing the company is another way which will be used for strategy evaluation. The external forces that are likely to affect the company are consumers who will purchase the new coffee eco-friendly cups. The customers who will purchase the products from Javo Beverage Company new products will determine the success of failure of the strategic plan. If more customers will be achieved after the implementation of strategic plan, then it will be clear that the strategy will be effective. The strength and weaknesses of competitors will also determine the success of failure of a strategic plan which means they will be used in the evaluation of the plan.
Measuring performance of the strategic plan is another way which will be used to evaluate the success of a strategic plan. This is where the objectives of the strategic plan will be compared to what the plan has achieved to see whether the strategy achieved its objectives. The results of the company will be evaluated to see whether they have been successfully achieved as per the stated objectives. In an evaluation of the strategic planning, the company should consider its position in the market as well as the market share which will determine the success or failure of the strategic plan.
A strategic plan is effective if it offers corrective measures that should be done incase errors are noted. Corrective performance is one of the determinants of a successful plan or unsuccessful plan. If all the changes required can be made for the strategic plan, that is an indication that the plan was successful. Despite the fact that change is a controlling process, identification of a change in a strategic plan and taking corrective measures is one way to evaluate the effectiveness of a strategic plan. Making changes to a strategic plan is important in the evaluation of a strategy.
Ethical Issues Faced by Javo Beverage Company
The ethical issues faced by the Javo Beverage Company include lack of assurance of the materials that will be used in the making of the cups. The material may be untested which can raise issues if it is not environmental friendly as the mission of the project states. The decision to source for local materials may not be compatible with the organizational culture because the company is used to make all its products from the material available in the company. Outsourcing materials will be going against their culture, and this can lead to increased costs for international raw materials. The fact that Javo Beverage company plans to add a new division may lead to increased competitiveness in the market as the company seeks to outdo each other in the market. Increased competition can make Javo engage in practices that are not in line with their plans and policies as they strain to be relevant in the market. Increased competition can lead to an unhealthy business rivalry with is often an unethical case since it establishes the concern of unfair business practices. Therefore, Javo may fail to adhere to corporate social responsibility if it does not meet its objectives of coming up with a new division. The company has to ensure that the raw materials used when making the cups are biodegradable so that they are environmentally friendly. In case the cups are not environmental friendly as the company states, that becomes an ethical issue which is likely to face the company.
Legal and Regulatory Issues Faced By Javo
All companies that produce foods and beverages are required to fulfill requirements under Food Standards Agency. Laws and regulations control the production, processing, and packaging or foodstuff. At times, agencies may come up with new laws that would require firms like Javo to make adjustments to the production and packaging products. Such legal and regulatory mechanisms will interfere with the operations of Javo Beverage Company and its new division. Policymakers develop policies that stipulate how business is run and regulations must be implemented for the company to adhere to procedures strictly. Licensing is a function that is mandatory for any firm producing food products and beverages, and Javo is not an exemption since it is required to make payments for operational licenses. At times, the costs of permits may go up which forces Javo Beverage Company to pay more than they had projected. Javo Company can have its license revoked if any illegal issues are reported where investigations bare started, and it can only begin operating after the investigations get finalized. The legal and regulatory factors are a threat to Javo Beverage Company.
Corporate Social Responsibility
Javo Beverage company is responsible for ensuring that all employees are treated well while in the organization so that they are productive for the organization. It is the responsibility of the company to ensure that all the consumer needs are met which is the reason why the new division will be opened so that eco-friendly cups are made. This shows that the company is responsible for the environment it works in which is why the cups made will be environmentally friendly. The company has an approachable attitude which enables consumers to air their needs which are met through improving the quality of their products. The company ensures that research is well conducted to know areas that require improvement, so consumers’ needs are met. The expertise and technology applied in the company are promising which will be used in the development of eco-friendly cups. The company has to ensure that the coffee and products given to consumers meet the standards so that it is not held liable for any food poisoning done to its consumers.
The environmental responsibility of the company is depicted where the company tries to come up with products that are environmentally friendly. The coffee cups will ensure that the environment is well conserved which is among the responsibilities of the company. The company provides a diverse and inclusive working environment which is an indication that discrimination is not part of Javo Beverage Company. There is a good customer relation between the company and its consumers as the company listens to all the needs of the consumers so that effective solutions are attained. The company promotes sustainable products and also gives back to the society as a way to strengthen the relationship between itself and the potential consumers. The company obtains its products from the planet and recognizes the importance of maintaining a good environment.
Implications of People, Planet, and Profit
Implementation of the strategic plan will have an impact on the triple bottom line in different ways. The planet will be well conserved as the eco-friendly coffee cups will be biodegradable which will ensure a clean environment. Implementation of the strategic plan will help other organizations adopt the use of eco-friendly products which will be a favor to the planet we live in. The products used by the company and the products made are friendly to the environment which will mean that they will ensure sustainability.
The implication the implementation of the strategy will have to people is that there will be increased consumption of products from the company since the cups will be disposed at any location with no impact to the environment. There will be the creation of employment after the new branch is opened which will be a positive impact to people within the region. Customer relations will be enhanced so that they can be loyal consumers of the company products.
The implication the implementation will have on the profit of the company is that there will be increased profit as most consumers of coffee products will choose the company. This is because other companies still use products that are not friendly to the environment and this will be a competitive advantage for Javo Beverage Company. This translates to increased profit for the company before other competitor companies adapt to the new strategy. The increased demand for the eco-friendly cups will lead to more sales which will, in turn, increase the profit of the organization.
Executive Summary
The new division of Javo Beverage Company will be producing eco-friendly coffee cups that will have no effect on the environment when disposed of. The new division aims at achieving zero environment pollution by making coffee cups that will be disposed to the environment with no effects expected. The mission of the new division will be meeting environmental conservation as well as provision of quality coffee to consumers. The vision of the new division is to ensure all customers are treated equally, receive quality products and achieve environmental sustainability through developing products that will be environmentally friendly. The goal of the division is to use natural products from the planet while maintaining and conserving the environment by making it more valuable. This new division will ensure that Javo Beverage Company is a one-stop location where consumers will get all their services from a single location.
The new division will employ the same culture as the main Javo Beverage culture, and the management will be similar, only that the department will have a separate department manager. The new division will meet the needs of consumers by ensuring the safety of the environment we live in. This will ensue that the environment we live in is safe as the cups used will be degradable.
The business will deal with the production of coffee cups that are environmentally friendly. This can be expensive as the materials that will be used will be imported which means the profit can be limited depending on the material that will be used. The marketing of the new products will increase awareness of the products which can make them more marketable.
The eco-friendly coffee cups will be valuable to consumers as well as to the environment they are living in. This is because they will make sure that consumers can shop all items from a single location which will save on time and cost. Despite the fact that they are new products in the market, the company will ensure that the price of the cups is controlled so that consumers can afford the cups from the company.
The key assumption when implementing the strategic plan is that consumer taste and preference will not change after the implementation of the cups. It is also assumed that no other competitor companies have a plan like this so that this can be a competitive advantage for Javo Company. The company also assumes that the consumers will accept the change and appreciate the eco-friendly cups over other cups in the market.
The Risks
The assumed risks are the change in consumer tastes and preference which can make them opt for other cups in the future. This will translate to reduced sales for the new division hence reduced profits. Another risk is the emergence of a company that will offer similar products which will lead to increased competition. Increased cost of raw materials for the eco-friendly coffee cups is another expected risk after the value of the cups will e recognized.
The management of the new division will be under the management of the entire company only that there will be departmental managers with their specific roles in the new division. The new division will follow the culture of the entire company to minimize management issues.
The new division will have increased profit as compared to the current company which means it’s a profit opportunity for Javo Company. The company can have increased profit by 25% of the average profit made which will be a competitive advantage for the company. There will be increased revenue and an increase of profit by 10% in the next one year.
The new division will increase employee satisfaction as well as the development of skills among various stakeholders. There will be a high customer retention which will attract more consumers of the company products.