Student’s Full Name
In this essay, we shall use the business model of a lemonade stand to answer a handful of questions concerning the way a business operates. Although a lemonade stand has a simple structure, it can help us illustrating the concepts of business. We shall address each subject separately to keep a thorough, and cohesive discourse.
To start our essay, we shall answer a handful of questions concerning the foundations of our company.
Develop a Creative Name for the Lemonade Stand
We decided to use the name: “Pucker Up”. It is related to the tangy flavor of the lemonade and also resembles the motion people do when kissing, which can make our prospective company look playful and up-to-date. A good name is important because it is the base of a business. We might have all the options, and possibilities to run a business smoothly but without a proper name, it might not stick and would not give us the competitive advantage we are looking.
A mission statement defines why the organization exists, what it does, what it hopes to achieve, and the principles it will abide by to meet its goals. It is used to bring clarity of focus to members of the organization and to provide guidelines for the adoption of future projects.
Create a Mission Statement
“A mission statement defines why the organization exists, what it does, what it hopes to achieve, and the principles it will abide by to meet its goals.” (Thill, 2012)
Pucker up: “We aim to offer the tastiest juices of all town, by using the freshest home-grown materials. Making sure you are not only receiving the tastiest product possible, but the best choice in the market.
Explain why the Statement is Important
As the quote stated, the importance of the mission lies in its guiding capacity. With a clear mission statement, shareholders and employees know what to expect from the company, and which politics aligns better with the business’s mission.
After laying the foundations of our company, we shall develop the next part, the CSR plan, and the pricing strategies
Outline the CSR Plan Concerning our Corporate Social Responsibility plan, we aim to use homegrown materials that are not cultivated using pesticides, that way, we aim to reduce environmental damage and stimulate the local markets. Also, we expect to employ at least two employees, one of them can be an elderly person, and the other one a teenager. That way, we are offering someone its first employment, and to the elderly citizen, an alternative to keep active. Our work ethic will always be pointed toward honesty, and good service, if we can provide both, we shall run a successful company.
We intend to sell our juice in 3 different presentations. 8oz; 16oz; and 32oz. To calculate our prices we had used a “Cost-plus Pricing” pricing strategy. To do so, we have to calculate and set the production costs. This includes the cost of goods and the volume of those goods. Afterward, we shall calculate the profit margin. For instance, we have calculated that our 8oz lemonade costs to produce around $0.90. If we calculate a fair profit of 30%, we would have to sell it in $1,17. The same goes for the rest of our presentations. If we can calculate our profits correctly, we will always get a profit.
After the definition our pricing strategies, it is important to set the future of it. Should it go global, or not? To conclude our essay, we shall answer that question
Should the Company go Global?
We have foreseen that to build an online presence we would have to build a strong local presence first. In the same way, despite not going specifically against our business ethics; if we created an online lemonade selling business, the company would have to add preservatives and chemicals to the juice in order to make it last enough until it gets to the final consumer. That way, if we said we aim to have a socially responsible business that used green resources, and we started pouring chemicals into the juice, we would be lying, and that could hinder our reputation. That way, we shall reconsider our online presence.
E, C., & Thill, J. (2012). Business in Action: With real-time updates (6th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall.
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