Mineral Water Deerside Essay

Pages: 5 (1642 words)  ·  Bibliography Sources: 2  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

SAMPLE EXCERPT . . .
The final key success factor will be to ensure that there are no issues in the supply chain. The Republic of Georgia is in the area of Italy or Greece on the Global Corruption Perceptions Index (Transparency International, 2010), but beyond dealing with local officials the Caucasus region is politically unstable -- it is important that there are no problems with this part of the supply chain. The unhappy experience of Fiji Water is an example of how supply chain issues can effectively cripple a water business (Hsu, 2010).

Break-Even Chart

Costs

Year 1

Initial Marketing

100000

Ongoing Marketing

120000

Other Fixed Costs

144000

Total

364000

Revenue per case

42

COGS per case

33

Contribution/case

9

Breakeven # of cases

40444.44

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The risk management plan is going to focus on political risk, and this will entail ensuring strong relationships with our supply chain partners in Georgia. We need to ensure that political risks are minimized, and having good partners both in government and in the private sector will help with this. Risks associated with shipping will be managed with insurance. Financial risk management strategies will be developed at a later point -- starting the business is a far greater financial risk than anything else that could appear at the present moment. As for contingency plans, if there are problems with the water source, the company is considering to identify sources of this water from other parts of the world, either in the Caucasus region or elsewhere. Once the business is underway, alternate sources will be identified so that the company can avoid what happened to Fiji Water, where the firm ultimately accepted a very high tax on its water in order to keep rights to its spring.

Works Cited:

Essay on Mineral Water Deerside Is a Assignment

Hsu, T. (2010). Fiji Water to stop operating in Fiji. Los Angeles Times. Retrieved May 17, 2011 from http://articles.latimes.com/2010/nov/30/business/la-fi-fiji-water-20101130

Transparency International. (2010). Global Corruption Perceptions Index 2010.… [END OF PREVIEW] . . . READ MORE

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Mineral Water Deerside.  (2011, May 17).  Retrieved November 24, 2020, from https://www.essaytown.com/subjects/paper/mineral-water-deerside/1915268

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"Mineral Water Deerside."  17 May 2011.  Web.  24 November 2020. <https://www.essaytown.com/subjects/paper/mineral-water-deerside/1915268>.

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"Mineral Water Deerside."  Essaytown.com.  May 17, 2011.  Accessed November 24, 2020.
https://www.essaytown.com/subjects/paper/mineral-water-deerside/1915268.