Growth pplan for Bevtech Inc.

• Main Author: Reinoso, Aileen Marie Solinap
• Format: text
• Language: English
• Published: Animo Repository 2016
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5260
• Institution: De La Salle University

Bevtech Inc. is a trading company that was established in 1999. The founder of the company was a former purchasing manager of one of the top soft drink manufacturers in the country for 20 years. The company belongs to the Business-to-Business (B2B) sales category, and is primarily engaged in the importation and distribution of packaging, raw materials, bottling machinery, and spare parts to the domestic beverage manufacturing companies. The company also offers engineering services for bottling machineries. The internal analysis of the company shows that one of the major strengths of the company is its reliable network of principal suppliers abroad with cheaper manufacturing cost and has the manufacturing capability to meet the requirements of the clients. Being a medium sized1 family owned business, its system is more flexible, which facilitates a timelier decision-making to accommodate urgent changes required by its clients. Also, the founding General Manager of Bevtech Inc. has 20 years of experience as a purchasing manager for the beverage manufacturing industry which gives the company an edge in terms of familiarity and connections within the industry. On the other hand, the company's weakness is that it doesn't have an established human resource department. The family member as key management personnel, and the company's recruitment and selection depends on who the founding General Manager knows as an experienced industry practitioner. As a trading business, the company is often exposed to foreign exchange risk, economic down turns, natural and man-made disasters, and climate change. The shifting of Filipinos to a healthier lifestyle poses as a threat also because the major clients of the company are soft drinks manufacturers. Despite these threats, the external environment presents quite a number of opportunities for Bevtech: a growing domestic economy, a continuous upward trend for imported products and a growing fountain sales trend in the soft drinks industry. Bevtech is looking to expand its product line to improve the company's overall profitability and growth. One of the top soft drinks manufacturers presented a need for a post-mix dispenser equipment to start a fountain sales division on 2016. Bevtech aims to grab this opportunity and provide an end-to-end solution that will meet their clients needs. This will add a new revenue stream to the business which can help boost the company's earnings. Based on the forecast made in 2015, the additional potential revenue for the product expansion is Php. 9,000,000. As an accredited supplier, Bevtech was able to join the bid to supply the post-mix dispenser for 2016. However, Bevtech was not able to get majority of the requirements and was only able to supply 3 units. This prompted the company to review their strategies to increase market share for the next bidding.