Topic: BusinessIndustry

Last updated: January 27, 2020

Executive Summary”The Moment Iced Green Tea PCL” is a private company. This is a company which produces and distributes iced green tea. The service center of the company is located at a place where customers could easily go and fulfill their needs. This company expect to provide a friendly service and favorable price for the product. A friendly staff will provide the necessary service for the likes of the customers and will help the upliftment of the company.

There are three management levels as top management who sets objectives and get decision regarding to the organization, middle management who are responsible to develop and implement activities. First line management engaged in day to day activities. Supportive staff that helps to all levels of management.

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Operating plan of the “The Moment Iced Green Tea PCL” explains the idea about Iced tea industry in Sri Lanka and how to start up the organization and how to implement the process with allocating the time frame regarding to each activity.

The main reasons for the success of strawberry iced green tea.

It is in a place where customers can easily access.

The company environment has a safe and calm place that customers and employees are satisfied.

As the company made a large advertising campaign the products will be very famous in the southern province and it is available in most of the super markets in the southern province such as Cargill’s food city, Keels Super Centre, Arpico etc.

Table of Content TOC o “1-3” h z u Executive Summary PAGEREF _Toc525201939 h 1Table of Content PAGEREF _Toc525201940 h 2List of Figures PAGEREF _Toc525201941 h 3List of Tables PAGEREF _Toc525201942 h 3List of Abbreviations PAGEREF _Toc525201943 h 31.0.Introduction PAGEREF _Toc525201944 h 42.0.Core Competencies PAGEREF _Toc525201945 h 53.0.External Environmental Analysis PAGEREF _Toc525201946 h 63.1.PESTEL Analysis PAGEREF _Toc525201947 h 63.2.Porters five forces analysis PAGEREF _Toc525201948 h 74.0.Strategy Formulation PAGEREF _Toc525201949 h 84.1.SWOT Analysis PAGEREF _Toc525201950 h 84.2.Grasping the Identified Opportunities PAGEREF _Toc525201951 h 94.3.Mitigating Identified threats PAGEREF _Toc525201952 h 94.4.Eliminating/ converting weaknesses PAGEREF _Toc525201953 h 105.0.Conclusion PAGEREF _Toc525201954 h 106.0.References PAGEREF _Toc525201955 h 117.0.Appendix 1 – PESTEL analysis PAGEREF _Toc525201956 h 128.0.Appendix 2 – TOWS matrix PAGEREF _Toc525201957 h 14
List of Figures TOC h z c “Figure” Figure 31- Porter’s five forces Analysis PAGEREF _Toc525170506 h 7Figure 41- SWOT Analysis PAGEREF _Toc525170507 h 8
List of Tables TOC h z c “Table” Table 71 – PESTEL analysis PAGEREF _Toc525206901 h 13Table 81- TOWS matrix PAGEREF _Toc525206902 h 14
List of AbbreviationsBEP – Break Even Point
FDA – Food and Drug Administration
PCL – Private Company Limited
QOS – Quality of Service
SO – Strength-Opportunities
ST – Strength-Threats
WO – Weaknesses-Opportunities
WT – Weaknesses-Threats
Introduction”The Moment Iced Green Tea PCL” is a tea company which can compete with the existing tea products in the market. People are demanding innovative products that respond to these challenges without sacrificing fundamental lifestyle choices. This product enriches with strawberry flavored iced green tea.
Target group are the men and women in the age of 30-60 years old. Green tea consists of health ingredients which helps the target group to keep themselves healthy. Adding strawberry flavor will help more customers other than the targeted group to consume Iced green tea which contains 98% herbal and natural ingredients (Megan, 2017)
This product stands out among the other competitors in the market which reveals its Unique Selling Points(USP).
It is in the heart of Galle town in Southern Province where the customers can easily access with a vehicle parking space.

Reputation gain through the advertising campaign for its cleanliness and the product quality.
Deliciously refreshing blends of green teas.
Provides excellent and friendly customer service with 100% satisfaction guarantee.

Basically, customer oriented by replying the customer feedback and complains.
Easy payment option using credit and debit card.

To be a day to day household brand among Sri Lankan consumers
Drive new product development through expensive Research & Development
Leveraging modern technology to deliver a superior product
Customer engagement through social media.

Core Competencies
The development of human capital management is making it easier with processes to help managers attract and retain the right people in right time in the right place (Zorlu, 2009). 
Offering this type of green Iced tea is done with the tremendous effort of the workers of the company. When investing from the human capital point of view it can be projected to increase the revenue per employee.
The management team of the company consist of several levels. Senior Manager is responsible for the top management and for the whole organization. Middle management will be handling by the Operation and Administrative managers and the supportive staff is handling day to day activities within in the organization.

This team was trained to understand the business issues involved and the measures that must be taken in the human capital point of view. It’s always better to adjust for the unique industry and startup situations. (Leif, 1996)
It is difficult to duplicate the workforce capability of the competitors rather than copying (Wayne, 2008). Therefore, here in the company the main target was to build the human capital and the capability of the people as to gain the competitive advantage.
The main objective of “The Moment Iced Green Tea PCL” is to move over the breakeven point in the first six months. As the product was promoted all over the Southern province by several months better net profit ratio can be obtained.
Breakeven point
Unit contribution of the 5th year = Selling price-Variable cost
= 45-25
BEP in units =TFCUNIT CONTRIBUTION = 20000020 =10000 units
External Environmental Analysis
These are the forces outside the company which affect the business or the company (Parnell,2014)
Porter’s Five forces analysis.

PESTEL AnalysisThe new venture was analyzed using the PESTEL analysis. Appendix 1 will depict the PESTEL descriptively for “The Moment Iced Green Tea PCL”.
Governments’ “Api Wawamu Rata Nagamu” and “Ganna Ape De” policies are encouraging cultivators and it will be a way of increasing number of suppliers. Therefore, the company’s bargaining power is high. This will be favorable for the product implemented by the company.
Due to the dependency of conflicts consumer’s spending power varies. (Frank, 2015). This will be challenge to the company where it can be mitigated to certain extent through the level of service provided.

The recent trend of spending a healthy life and consuming healthy food will benefited the company
This factor can vary under the social class distribution where the company introduce a low price.

Rapid development of the technology will ensure the growth of the company where the marketing strategies most rely on.
There is a massive improvement in agricultural sector in Sri Lanka. Tea industry plays a vital role. (Central Bank Annual Report,2017)
Gaining the approval of FDA (Food and Drug Administration) for this product and other laws currently implemented in the country is challenging. The quality of the product and the QOS will ensure the mitigation of these challengers.

Porters five forces analysis485775287020
23622001307465Rivalry among current competitors: Moderate
00Rivalry among current competitors: Moderate

Figure STYLEREF 1 s 3 SEQ Figure * ARABIC s 1 1- Porter’s five forces AnalysisAccording to Porter’s five forces analysis “The Moment Iced Green Tea PCL” the level of threat of entrants and the rivalry has been moderate due to the uniqueness of the product. Threats due to the number of substitutes and the suppliers will be a definite challenge to the company. The management plan of the company by enhancing the QOS through human capital management and the marketing strategies will mitigate the above threats and attract more customers
Strategy Formulation
Evaluating the SWOT analysis and TOWS matrix will always identify to seek solutions for the problems (Fleisher ; Babette, 2002)
SWOT Analysis
Figure STYLEREF 1 s 4 SEQ Figure * ARABIC s 1 1- SWOT AnalysisDetailed analysis on the TOWS matrix is given in the Appendix 2.
Grasping the Identified OpportunitiesWhen grasping opportunities to succeed in the new business SO and WO can be used.
The development of advanced technology and marketing strategies through internet provides easy access to the customer base. The effectiveness and the inexpensive level of the strategy will allow to communicate the upgrades and the QOS of the business to the customers.
Since the unemployment rate is high it carves the path for the potential staff to work and set down their skills to develop the company.

Cheap and transparency in pricing strategies will attract groups of people in social class distribution which is due to the development in tea industry in the country.

Mitigating Identified threats
According the TOWS matrix in Appendix 2, ST strategies and WT can be used to mitigate threats in “The Moment Iced Green Tea PCL”.
As this company located in the heart of Galle town in Southern Province more customers will attract to the product because of its uniqueness. This will help to cover up the cost that was spent to start the business. Moreover, the hospitality of the company staff and other facilities such as free Wi-Fi will be beneficial in achieving the target.
The uniqueness of the product and its nutritional value will mitigate the threat of competitors and
other substitutes
Transparency in prices and the above-mentioned factors will also mitigate the threat from imposing

Eliminating/ converting weaknessesIn price the company intend to offer extremely reasonable prices in comparison to the competition and it need to be able to sustain that.

The promotion strategy will be based primarily on informing potential customers of the existence of the company and making the right information available to the target customers.
Adding more variety of flavors will eliminate the fact of having only strawberry flavored iced green tea.
Green tea is a type of tea that is harvested and then quickly preserved. Green tea is gaining popularity due to its purported health benefits, which include high levels of antioxidants and vitamins. (Megan, 2017). Out of 2.1 billion population of the Sri Lanka most of the people are suffering from diabetic, cholesterol and health troubles (Annual Health Statistics report, 2016) Therefore, introducing iced green tea for all type of people who are interested in green tea will be beneficial for both customers as well as the company.
By focusing the marketing strategy channels to increase the sales volume and to maximize the organizational profit market share of our organization will increase, especially in the Southern Province.

Using the External analysis of PESTEL and five porter’s analysis the organization goals can be achieved. SWOT analysis and the TOWS matrix will help in mitigating the problems of the company and to develop it to a well renowned brand.
Central bank of Sri Lanka. 2017. Annual Report 2017. Online. 5th September 2018. Available from:
Craig Fleisher & Babette Bensoussan (2002). STRATEGIC AND COMPETITIVE ANALYSIS. (Revised ed.). United States: Prentice Hal.

Edvinsson, L. 1996. Developing a model for managing intellectual capita. European Management Journal. 14(4), pp. 356-364.

Felix Olajide, T. 2012. Making Slogans and Unique Selling Propositions (USP) Beneficial to Advertisers and the Consumers. New Media and Mass Communication. 3(2224-3267), pp. 178-187.

Frank T. Rothaermel (2015). Strategic Managment. (SECOND ed.). United States: McGraw-Hill Education.

Gary S. Becker (1994). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education. (3rd ed.). United States: The University of Chicago Press.

Megan ware, R.D.N.L.D. 2017. Green tea: Health benefits, side effects, and research. Green tea. 2(25), pp.220-254
Ministry of health, nutrition and indigenous medicine. 2016. ANNUAL HEALTH STATISTICS 2016 SRI LANKA. Online. 6 September 2018. Available from:
Parnell, J.A (2014). Strategic Management: Theory and Practice. (4th ed.). United Kingdom: SAGE Publications, Ltd.

Schoeffler, B. 2009. What is your USP? Insurance Journal Program Directory. 1(2231), pp.35-38.

Wayne F. Cascio (2008). Managing Human Resources. (Eighth ed.). United States: McGraw-Hill Irwin.

Zorlu Senyucel (2009). Managing the Human Resource in the 21st century. (1st ed.). United Kingdom: BookBoon
Sri Lanka Labour Force Survey. 2018. Labour Force. ONLINE Available at: 11ccessed 10 September 2018.
Sri Lanka Inflation Rate. 2018. Sri Lanka Inflation Rate. ONLINE Available at: 11ccessed 17 September 2018.

Appendix 1 – PESTEL analysisPolitical Degree of bureaucracy is medium.

Average involvement from media
Higher taxes
Laws imposed for consumer protection is law
Economical Inflation rate of Sri Lanka in 2018- 4.85 (acceptable) (13)
Unemployment rate in Sri Lanka – 4.5 (higher) (14)
Poverty level of people is above average
Low interest rates for enterprises
Agricultural industry is boosting upwards.

Social Social class distribution is high
Consumption of healthy food is high
Attraction to QOS is high among people
Attitude toward saving money is high.

Technological Consumption of internet is higher
Wider coverage of mobile service providers in Southern Province
Skilled labor force with a technological awareness.
Ecological Climate change affect the agriculture
Natural disasters such as landslides.

Less pollution in Galle area due to its geographical establishment.

Seasonal changes are not often in Sri Lanka
Employment and labor law
Imposing environmental Laws
Laws regarding health and safety inside the company.

Intellectual property law
Table STYLEREF 1 s 7 SEQ Table * ARABIC s 1 1 – PESTEL analysisAppendix 2 – TOWS matrixStrength Weaknesses
Opportunities Transparency in pricing strategies by offering Iced green tea with reasonable price tags
Promotion and advertisement campaigns throughout Southern province due to advancement of technology.

Skilled labor force transferring the knowledge to the company for its development
Engagement of skilled labor force in adding verities to the products.

Using latest technology to advertise cost can be saved.

The technology will help to maximize the awareness of the company among consumers.

Threats Existing competition can be mitigate through the uniqueness of the product and its nutritional value.

Taxes imposed can be overcome using ample amount of product sales.
Product sales can be enhanced through the facilities provided in the venture such as Wi-Fi Adding more variety of flavors will deviate for the company weaknesses and the threats of competitors.
Handling several types of suppliers under a time base from different regions will mitigate the climate problem affected to the tea industry.

Table STYLEREF 1 s 8 SEQ Table * ARABIC s 1 1- TOWS matrix


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