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****First paper is attached*** “A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)” (Abrams, as cited in Scarborough & Cornwall, 2015, p. 237).With this assignment, you will be addressing the fundamental question: Does this business have profit potential?Referring to the same business you either started or purchased in the first assignment, write a three to four (3-4) page paper in which you:Conduct a feasibility analysis in which you research:Industry and Market FeasibilityProduct or Service FeasibilityFinancial FeasibilityEntrepreneurial ReadinessBased on your assessment, does the business idea need to be modified, changed significantly, or abandoned? (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.)Include at least two (2) references outside the textbook.Your assignment must follow these formatting requirements:This course requires use of Strayer Writing Standards
(SWS). The format may be different than other Strayer University
courses. Please take a moment to review the SWS documentation for
details (more information and an example is included in the Strayer
Writing Standards left menu link).Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
assignment_one.doc

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Running head: ENERGY RAIN
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Business Idea: Energy Rain
Stephanie Cooper
April 20, 2019
BUS402
Dr. Garabedian
ENERGY RAIN
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Business Idea: Energy Rain
The company will be dealing with energy drinks in the American market. The reason
behind this is that there is a market for the energy drinks that is steadily increasing presenting
an opportunity for the business to flourish. It will be focusing on healthy energy drinks away
from the usual sugary products that other firms offer. There is also the fact that the energy
drinks have a lot of caffeine in that they have to affect the health of many people as they end
up lacking sleep due to addiction to the product. The people, in this case, desire a healthy
alternative that helps them gain energy away from the side effects that caffeine may bring
into their life. The business will seek to capture the hearts of consumers with a new concept
that has natural fruity tastes away from the usual drinks. There will be no sugar in the drinks
only that they will have a lot of energy that the market demands
According to Statista (2019), the market of the energy drinks has a promising future that
attracts many businesses to it. In twenty sixteen only the companies in the markets made
sales amounting to $28 billion in the United States. They also outline that the market is bound
to grow into the future as many people are embracing the drink. It has been on the rise since
2011. In terms of the volume sales, some to the companies in the industry have enjoyed a
5.13% in sales volume in 2016 alone a number that is bound to rise too. The market is
promising as the consumers in a survey proved that there is a potential for growth in the
consumption of the same drink as they take the drink up to three times in seven days. The
survey with positive results covered about 47% of the respondents who admitted to taking the
drink. In addition to the same, the gas station proved to be the number one outlets that served
the consumers diligently. The product is available cheaply in the market; hence a lot of
people can afford the same.
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Competitors and their Strengths and Weaknesses
The industry, in this case, has significant players such as Red Bull, Coca-Cola’s Monster
drink, as well as, Rockstar. RedBull, in this case, happens to be the strongest contender in the
energy drinks market with its sales amounting to $3 billion in the year two thousand and
sixteen (Statista, 2019). The drink has captured a significant market share and has loyal
customers. Therefore, they have capital that makes it stay to operate in the market and
consumers who buy their product as they respect the brand. One of the weaknesses of the
product is that they have a lot of sugar in it; therefore, they are really unfit for the
consumption according to the health standards. The consumers are at risk of being addicted to
the same product that harms their body.
The second player in the same market happens to be Monster with sales amounting to
$1.5 billion as per 2016 records (Statista, 2019). The drink is backed up by the fact that its
owners Coca-Cola have a significant market share in the soft drink area. They also have a
brand name that the consumers can recognize making it easier for them to penetrate the world
market plus the company has capital that would help them if they had to carry out aggressive
marketing on the same issue. The weakness on the same is that the company ventured into a
different market that they are not known for hence convincing the people to take the drink is
a huge task plus it has a lot of caffeine that is a danger to the health of the individuals who
indulge on the beverage. Coca-cola has an established distribution channel too that makes it
easy to distribute its product to outlets worldwide.
Mission Statement
‘To be the only option for the consumers in the energy drink market’
As the days have gone by the consumers, depend heavily on the energy drinks. The
mother, for example, has a lot of duties to attend too; many are the times that one will see
them get off work but still go back home to make meals for their families. They need energy,
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in this case, to pull off these responsibilities. The young people, on the other hand, happen to
be energetic, but they all need energy as they travel a lot, go to entertainment spots, as well
as, stay awake for long hours (Doggett et al., 2019). They need more power to enjoy what is
given to them at a particular time. The older generation in the market requires energy to help
them take care of ailments such as falls due to the weak nature of their bones. All these
people present a market for the company.
This is because the brand that will get into the market seeks to eliminate the health-scare
that the consumers face whenever they use the energy drinks. Also, the firm aims to be a
market leader as it has a concept that not many companies have in the beverage market. It has
few contenders who have the same concept, but they miss the ideas that the new company
will offer to the consumers in the market. It will also seek to bring the prices in the market
down to be more affordable than they are at the moment.
The Ownership
The firm will be a limited company registration. That means that if by any chance
they liquidate the firm the properties of the owners will not be part of the things taken by the
authorities to compensate the creditors. It will also need the court’s intervention to lift the
company’s vial to get to the directors in case there is any fraud committed in the name of the
company, and the owners are guilty of the offense. The liabilities also will be limited to the
organization, and it can be sued just like any other person, as it will be considered to be an
artificial person at this point. It will also list three directors, as they are the people that will
have contributed to the format.
The managers will carry out duties on behalf of other owners as they will have to deal
with the day to day operations of the firm. They will also have to create value for the same
owners and help in the growth of the entire company. They will also organize, strategize and
control the activities of the employees who work for the organization. They will also come up
ENERGY RAIN
with budgets, as well as, the forecasts for the company that will help them manage the firm
resources diligently. Minimal utilization of resources, in this case, helps save money for other
duties in the organization. In terms of taxes, the organization will only get subjected to
corporate tax, which is at 21%.
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References
Doggett, A., Qian, W., Cole, A. G., & Leatherdale, S. T. (2019). Youth consumption of
alcohol mixed with energy drinks in Canada: Assessing the role of energy
drinks. Preventive Medicine Reports, 100865.
Statista, (2019). U.S. Energy Drinks Industry and Market – Statistics & Facts. Retrieved from
https://www.statista.com/topics/1687/energy-drinks/

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