BUSINESS MANAGEMENT 1A
COBMA1
Table of Contents
1.1 Executive Summary................................................................................................3
1.2 Product/Services..............................................................................................................4
1.3. Financial Projections......................................................................................................6
1.4 Marketing Strategy...........................................................................................................7
1.5 Operations Plan................................................................................................................9
Question 1.6 Risk Management.........................................................................................10
BUSINESS PLAN
1.1 Executive Summary
Glitz & Blitz slushie stand is a venture that aims to offer a refreshing and exciting
beverage experience for students and lecturers. The increasing demand for
convenient and enjoyable refreshment options within the school environment
influenced the decision to do this business.
To understand the markets needs and utilize opportunities, extensive research was
conducted to identify key trends and preferences. This involved close observation of
student and faculty behaviours during school hours, surveys to measure interest in
new beverage options, and in-person interviews to understand the desired element
of a refreshing drink. The findings from this research indicated a strong preference
for easy-to-carry, fun, and affordable beverages, indicating a promising chance for
Glitz & Blitz to capture this market niche.
The target audience for Glitz & Blitz includes our school campus students, faculty
members, and staff who seek a delightful and reasonably priced treat during their
time on the day.
Regarding marketability, we firmly believe in the appeal of our products and services.
The unique selling points of our slushies, such as their vibrant colours, diverse
flavours, and cooling effect, are likely to resonate strongly with the target audience.
With a strategic marketing plan that leverages social media, word-of-mouth, and on-
campus promotions, we are confident in our ability to create excitement and drive
demand for our offerings.
1.2 Product/Services
Description of Slushy Product:
Our slushy stall will offer a delightful and refreshing variety of slushy beverages to
students and faculty on the school campus. Our menu will feature a range of vibrant
and delicious flavours, including classics like strawberry, blue raspberry, and lime, as
well as unique combinations like tropical punch and watermelon mint. Each slushy
will be carefully crafted using premium quality ingredients to ensure a flavourful and
satisfying experience for our customers.
Feasibility Evaluation:
The feasibility of introducing a slushy stall on the school campus is promising due to
the high demand for refreshing beverages among students, especially during warmer
months. Our product offers a unique and fun alternative to traditional drinks available
on campus, helping us stand out and attract a loyal customer base. With proper
marketing strategies and a well-executed business plan, we believe the slushy stall
has great potential to be successful on market day at the school.
Demand Assessment:
Through surveys and conversations with students, we have identified a strong
demand for slushy beverages among the school community. Many students
expressed interest in having a convenient and enjoyable option for a refreshing
drink. By introducing a slushy stall on the school campus, we aim to meet this
demand and become a popular choice for students looking for a flavourful and
cooling treat on the day.
Anticipated Challenges:
Some potential challenges we anticipate include obtaining necessary permits from
the school administration, ensuring compliance with health and safety regulations,
managing inventory and waste efficiently, and maintaining consistent demand during
different seasons. Additionally, competition from other food and beverage vendors
on market days may pose a challenge, but we plan to differentiate ourselves through
our product offerings and excellent customer service.
Resources Required:
To successfully produce and sell slushy beverages on market day at the school
campus, we will need resources such as high-quality slushy machines, cups, straws,
flavoured syrups, ice, water, electricity supply, and appropriate storage facilities.
Additionally, staffing will be required to handle operations, customer service, and
sales. Marketing materials to promote the slushy stall, example. Social Media.
1.3. Financial Projections
Creating a budget is one of the most important steps when starting any business. It
helps establish how much money is allocated to specific tasks and helps avoid
unnecessary expenses.
Collectively, Glitz & Blitz spent R1395.00 to start up. These funds were allocated as
follows:
DESCRIPTION COST
Slushy Machine Rental R850.00
Slushy Mixes R300.00
Clear Cups & Straws R245.00
TOTAL R1395.00
Labour and transportation were not outsourced and are therefore not included in the
budget; profits will be divided accordingly between shareholders.
Due to a moderately high demand, slushies will be priced at R40 per serving.
Extra precautions will be taken if the ice melts before we can sell enough slushies.
An additional R150 will be set aside to replace any melted ice.
For Glitz & Blitz to achieve profitability, a minimum of 45 slushies at R40 per serving.
1.4 Marketing Strategy
Marketing strategy is a business’s approach to promoting its brand to a specific
target audience. It also covers promotional efforts made by the business to get
resources across various platforms to enhance sales and attain a sustainable
competitive advantage in its respective market.
Before determining our market strategy, we looked at trends in the beverage
industry, specifically the slush frozen drink business industry. We found that the
beverage industry constantly shifts, so it is essential to keep up with consumers'
most recent trends, demands, interests and preferences for our business to stay
relevant and make profits.
Given that slush is a famous, vibrant and very much-loved frozen treat among many
individuals on a scorching hot day, our slush machine will be on display on a table
and not hidden on the ground so that customers can see what we have to offer and
decide to purchase some slush from us. We will use bright banners and decorations
around our stall to make our business stand out, along with branded cups and straws
with vibrant colours to attract customers and satisfy them with our products. Since
the presentation of our slush is just as important as its flavour, we will ensure that
our branding expresses our product's fun and refreshing nature.
In addition to showcasing our product with our cups logo and machine display, we
will also have a visually appealing and enticing menu highlighting our range of
flavours and how we use premium ingredients like fresh fruit and syrup to make our
slush. We will take that action to let customers know that we exclusively utilise fresh
ingredients and to persuade them to purchase our slush. Regarding the promotion of
the business, we will make use of a traditional marketing strategy that involves
handing out flyers or brochures in school, at locations like the canteen and notice
boards, as well as physically approaching people to inform them of what we will be
selling and what to expect from us. We will focus more on how fresh and high-quality
the ingredients that go into making our drinks are. To develop a loyal clientele and
encourage good word-of-mouth recommendations, the Glitz and Blitz team will
prioritise delivering exceptional customer service. We will prioritise providing our
consumers with outstanding customer service.
We will also be having a two-for-one deal and a “happy hour” where individuals can
purchase a single drink for 50% off for an hour to draw customers and turn a profit at
the same time. We won’t have any samples available because doing so will be
expensive and because everyone knows the typical taste of slush; therefore,
samples are unnecessary.
1.5 Operations Plan
Glitz and Blitz's business aims to ensure that customers and consumers satisfy their
needs and wants while generating a profit and solidifying business success.
Glitz and Blitz will be allocated a stall to showcase our products and services on
market day. Our team of 6 will be divided into two groups to start setup and ensure
that all the required essentials(equipment) are at our allocated stall and the products
sold.
The teams will meet the day before market day to ensure that all things required are
obtained, and on the day, the team will meet 2 hours before the event starts.
Our stall will be opened when the market day event starts and ends when all stock is
finished.
Group1: Boikano, Itebogeng, Ayanda
They will be in charge of preparing products and delivering the required equipment
and products to the stall to prepare for setup. This includes Cotton candy packets, a
Slush puppy machine with syrup, packaged popcorn and cardholders.
Group 2: Disebo, Amahle, Ohlanga
They will be setting up the stall and ensuring that all necessities are available, for
example, a power source for the slush machine, tables for placement of products
and a proper setting for the stall (where it is easily accessible for customers to buy
our products). Group 2 will also oversee the decor of the stall.
ROLE ASSIGNMENT
• Boikano Mtyele will be the manager.
• Amahle Manyoni and Ohlanga Pahlane will be sales.
• Ayanda Dlamini and Disebo Malale will be financed.
• Itebogeng Busang will be consultant.
Question 1.6 Risk Management
As defined in ISO 31000, the process of identifying, assessing and ranking hazards
or risks in the business is called risk management. There are numerous potential
sources of these risks, including supply chain, market, financial and strategic risks.
The supply chain risk in our business will come from our supply needing to deliver
our ingredients on time or our supplier having shortages, which will prevent us from
buying the usual number of products we usually buy. A supply chain risk situation will
influence our production, impacting our sales.
Market risk is another danger that may adversely affect us as Glitz and Blitz. If our
customer's preferences abruptly change away from sugary drinks, it could negatively
impact the sales of our slushies.
The financial risk with this enterprise could be needing more funds to meet our
operating expenses. Since this is generally a small business, getting capital will also
make it difficult for us to start our venture, giving our competitors an advantage if
they have the funds to start their business before ours; then, we automatically
already have to catch up before we even begin.
The strategic risk is that our company's profitability could be severely endangered if
another vendor offers a lower price for an identical product, such as the slushie we
sell.
Uthi, basically, we have to have a separate business pla. The assignment itself (the
one we have) and also a business plan
