Essay Sample on Double Vision Company Strategy

Introduction

Another thing that is used in spending the money is the packaging and transport t the consumers. Considering that the company deals with very highly perishable goods, the packaging requires them to use cold rooms and freezers. The smoothie is also liked by the customer's cold just like a milkshake.

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Considering the many uses of income, the company requires several sources of income. The first one is equity financing. This is the process that is used in funding an organization using shares. The shares are sold out to people who intend to become a shareholder in the organization. The result of this is that the company needs some capital for some internal activities. The success in this sector depends on the success trends of the company shows and how well marketed it is. An example of such as Google and Facebook, which are well established and show proper trends in growth. Many people are interested in becoming shareholders in such organizations. Upon announcing that they are willing to sell their shares, the organizations get a lot of income from the expectant shareholders.

There are several types of equity financing. The first one is family and friends financing, where the friends of the business owners have solid business connections (Nguyen & Rugman, 2015). They buy the shares and become members of the organization. Secondly, the shares may be sold to small business companies, and third, there is royalty financing. More means are used in equity financing that the company may use.

Plan Assumptions

The plan that ten company uses is very logical. Instead of hoping to the soda market where the domination is for several well-established companies, they chose to try out the smoothie industry where they begin in minimal competition. It makes it easier to establish themselves and become dominant in the market. Growing in a new market is relatively easy compared to a location where there are more prominent industries. In the plan that the organization has, the company aims at using $160000. The expenses can be covered by the means that have been described above. In addition to that, the population of Atlanta is supportive of the idea.

The idea to sell drinks that are consumable by people of all ages is also a good idea. A nonalcoholic fruit drink will be bought by people of all ages, unlike alcoholic drinks, which will be used by people who have attained a legal age and are not advanced in age. In many cases, people above sixty years of age are not likely to take alcohol. Another assumption is that the people are expected to shift to it due to the health benefits that the drink has. Many people are more inclined into choosing the drink because it's made of fresh fruits. It makes it possible for the fruit manufacturers to gain more income at lower expenses and increases their marketing power.

Break-Even Analysis

It's essential that the organization manages to make profits and remain afloat in the market. Other additional goals include increasing the domination of the market. The organization should ensure that they have the capital to buy stock and pay the labor force and cater to all the other expenses (Steenson, 2016). Basing on the excel sheets, the company can manage to make enough capital for the sustenance of its expenses.

There are two types of costs, fixed and variable. At the break-even point, the company neither makes profit or losses. It, however, allows the business to remain afloat in the market. Surpassing this point may mean that the organizations are making profits or operating at a loss. When the business is operating below the break-even point, a loss is evident. The total sales should amount to more than the expenses if the business is to thrive.

Conclusion

In conclusion, the Double vision Company has a proper strategy that is a stronghold if the company is to grow significantly. The operating costs are below the outcomes that the company intends to make. The opportunity to grow in the market that it has chosen is higher than if they chose to invest in the soda industry. The plan of action is valued and only needs implementation.

References

De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.

Nguyen, Q. T., & Rugman, A. M. (2015). Internal equity financing and the performance of multinational subsidiaries in emerging economies. Journal of International Business Studies, 46(4), 468-490.

Svensson, L. E. (2016). Cost-benefit analysis of leaning against the wind (No. w21902). National Bureau of Economic Research.