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The current paper was commissioned to develop a business plan for a tea company while discussing the goals of the business, its management, marketing strategy, operations plan, sustainable performance, and finally, providing financial analysis. People in the contemporary business environment suggest various ideas that do not take into consideration quality working conditions. A tea business has various factors that can either develop a business or hinder its flourishing. The established tea business has a positive factor because of the target population. The target population of most of the contemporary companies is between the ages of 15 and 45. However, the target population’s age range is from 45 to around 60 at Tamara firm. Many contemporary companies do not pay attention to this age, and the reason is that most of the people tend to have an understanding of people younger than the mentioned age group as they think most of these people bring a better marketing position for the company. Throughout the paper, there is clear explanation of the management and organizational structure of the company. Moreover, there is clear explanation of the marketing plan of the business. The main aim of the Tamara firm is to succeed in drawing as many consumers as possible for of tea it produces. An elaborate marketing plan is imperative and is outlined in the paper as well. The operations plan of the company is also described including the explanation of the various roles different people in the organization perform. Finally, the concept of business sustainability and the financial analysis of the company are clearly presented in the paper.

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Business Description

The business under discussion is Tamara firm which deals with tea processing and production. Therefore, the company has lately seen an increase in the number of machinery available at the production. As the company is located in the place where there is a high unemployment rate, its establishment has created a lot of workplaces for the locals, which is one of the proudest aspects of the company’s activity. The fact that it has offered employment opportunities for multiple people in the vicinity makes these individuals work harder to ensure that they do not disappoint the administration. Besides, this fact presents a form of social responsibility for the people living in that area. The business is small, but it aims at expanding in the future. With high efficiency of the workers, there will be improved quality and an increase in the quantity of products offered by the company.

Mission and Vision

The mission for the company is to ensure that it offers high-end tea making machines for the farmers all around the operating area and that it performs high-quality work. The vision for the company is an increased social responsibility by offering numerous employment opportunities.

The uniqueness of the Product and Service

The services offered by the company as well as its products, specifically packaged tea bags, are intended for people of different income classes. Other companies in the same industry mainly focus on the rich customers; however, Tamara firm is different in that it has the individuals with lower income among its consumers, for example, the peanut farmers.


The aim of any established organization is to have an increase in the profit margin, and consequently, to provide the employees with an improved life and to make the customers satisfied with the quality of the products. Generally, when a company is operating in a manner that it does not achieve its utmost potential, it is imperative to implement changes in order to ensure that the business attains success. Tamara is a food manufacturing company that has existed for a while. Over a short period of time, it has faced many challenges and has employed subsequent improvements. Therefore, the management of the company should understand what alterations are necessary to employ for the general improvement.

In the former months, the company majored in the production of a single line of products for specific clients. Over time, the company has developed significantly due to the many changes that have taken place with the advent of new management. The company has launched the production of diversified items; consequently, as with any developments, challenges have arisen. The company’s management has, however, remained steadfast in ensuring that it coped with the changes and continued offering quality commodities so that its loyal customers were satisfied.

One of the dilemmas that the organization faces concerns the human resource management (Martin & Hau, 2004, p. 48). The company has lost many employees because they claimed that their ideas were neglected. In order to overcome this challenge, the company should consider restructuring the human resource management of the company, which basically involves assigning to some of the top employees the responsibility to pay required attention to the workers’ needs (Manuj & Mentzer, 2008, 65). The most suitable agent for this task would be a person who has had a lot of experience in the company, and thus, would identify the ways to bring the maximum benefits to the company with the current resources. However, the change would be expensive as the restructuring of any department in the organization deters the company from the original focus on attaining market supremacy.

Another problem that Tamara faces is connected with decision-making process, which is conducted in a departmental manner. Due to this kind of decisions, there are many arguments and misunderstandings on the best way to implement plans and other vital issues in the organization. The best way to overcome this is by establishing a centralized manner of decision-making (Berman & Putu, 2012, p. 23). The most appropriate change agent to employ in this situation would be the company’s manager because he or she exercises the authority over all the departments in the organization. This change can work effectively in the following several ways.

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The general manager should establish a system in which the problems and suggestions made by individuals from different departments in the company are passed to him. The system organization ought to act in such a manner that every employee in the organization has to relay his or her problems to the departmental heads (Dale, 2009, p. 51). The heads, in their turn, upon receiving the information should not handle the issue on their own, but rather forward it to the general manager of the company who ought to present the issues to the company board for making certain decision (George & Lisa, 2004, p. 73). Nevertheless, this plan has the problem that the company’s board may be too busy to handle all the problems and suggestions from the employees because it consumes a lot of time. In order to overcome this challenge, the manager has to find a way to sort and divide all suggestions into groups that the board of the company can easily deal with (Wagner & Bode, 2009, p. 45).

Tamara has set a lot of goals in the recent years. The reason for this is that the firm wants to ensure that it has an increased number of net sales, and consequently, gains enough capital to expand the business. Besides, one of the goals is to expand to as many countries as possible. With this, many challenges may occur, and one of them is market domination. Tea products are international, and thus, are present in all countries (Conrow, 2008, p. 31). Promoting Tamara products in other countries is a great challenge; therefore, the company ought to make some changes in order to adapt to new markets effectively. One of the alterations to implement concerns public relations. There were times when the heads of the offices received the reports that some of their employees had poor communication skills. With improper interaction in a new market, the company might fail to establish strong grounds and might suffer from losses. As a result, it is imperative for the institution to launch the training programs where employees are introduced to basic communication skills (Marks, 2011, p. 21). With the efficient communicative skills, they can cover a larger customer base. Besides, the general effect of this would be the predetermined increase in gross income of the company.

Being aware of various threats that revolve around the company is vital in order to understand the changes that ought to take place to counteract them. One of the commonly identified threats is the one of new entrance. It may occur when Tamara introduces new commodities into the market. With the advancing society, the rise of new commodities is at hand as well. It is important to make some changes to accommodate these commodities (Reiss, 2011, p. 45). One of the reasons why this fear or rather threat appears is that there may be an existing firm in the market that has already introduced the commodity. This threat is the most common, and therefore, is to be treated with utmost concern. For Tamara, one of the ways to deal with this challenge is to cease the production of new commodities in small-scale as seen in past years, but instead, to focus on the large-scale sale of the products. This strategy will induce economies of scale, and thus, the customers will be attracted to the products because they want to save money (Adams, 2010, p. 76).

One other issue that Tamara may have to face when introducing a commodity into the market is the capital availability because the company deals with products that will require the equipment to process, and finally, manufacture the goods. Consequently, the business will need to ensure that it saves a lot of money to have a capital for the successful establishment of the industry (Barcroft, 2010, p. 87).

In addition, substitute products is another concern to grasp regarding the productivity of the organization. The administration ought to understand how to counter this issue by always staying vigilant as the new products that substitute the old items may be of better quality. This challenge is advantageous due to the manner in which the companies may flock to one area; they may be in a hurry to produce a lot with the purpose to increase their profits. In the process of manufacturing a lot of commodities, there is the risk of producing substandard items that may not be attractive to the customers (Pritts, 2007, p. 65). Due to this, the customers might decide to choose a similar well known product as the substitute, which would be very detrimental for Tamara. In order to avoid this, the company should employ the change and focus more on ensuring its ideals are about the quality, not quantity. It is a common knowledge that quantity that will not sell well will not bring any benefits for the company as opposed to proper quality products.

Besides, many changes concerning handling substitute products also ought to take place in the organization. The relative prices of the substitute may vary, which happens due to certain reasons. The substitute may have already established a very good customer base, and thus, the effect of its reduced prices may not befall it. Due to this, the customers may decide to go and purchase the substitute product that is much more beneficial to their economy (Anderson, 2008, p. 31). In order to handle this efficiently, Tamara ought to embrace the concept of patience that should come into play because it is not easy to change the mind of the customers. For the few loyal customers left to the new company, the business should do everything in its power, even including large discounts, to maintain them. This strategy would be effective as compared to the previous practice when the company has renounced its activity early because the introduced products did not sell as successfully as predetermined. This has led to many unnecessary losses (Surhone, 2010, p. 65).

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The power of bargaining that the customers possess is one of the issues to which the firm should totally pay attention. The company has let the customers have a large bargaining power. This is a positive reason though it has led to a subtle performance in the accumulated profits. Tamara should change its strategy and ensure that it establishes a fixed price for some of its commodities because the customers have other products to purchase to satisfy their daily needs, and hence, look for the easiest way possible to economize on their hard work. One of the most efficient ways to explain this is top consider the concentration of byers and to compare it with the concentration of firms providing a particular product (Craig, 2011, p. 43).

This change, however, has some challenges that may appear. Specifically, the customers may decide to form some of the so-called unions and beg for the reduction in prices. This is one of many efficient ways that the customers have used over the years to ascertain that they can achieve their goals. Customers apply this as a method of bargaining; since the product that the company is willing to introduce to the market is not a necessity, the customers may decide to go on some strike (Paton, 2008, p. 601). This would mean that the rate of trading may reduce, and thus, the market ability of the company generally decreases as well. The information that is available to the buyers over a certain period is very influential when looking at the bargaining power of the customers because they may have a wide range of sources outside the market geographical locality. This is very effective on the side of the consumers as they obtain information about the prices and the quality of products outside their locality. With this, they can be able to bargain being fully informed. Hence, it is appropriate to ensure that the customers understand the various processes that lead to the production of dairy products, and as a result, appreciate the prices marked (Jing, Chen & Zhang, 2012, p. 89).

Supply Chain and Marketing Strategy

Furthermore, Tamara firm ought to consider the bargaining power of suppliers. Just like the customers, the suppliers relate to the daily products industry as well. If to compare them with the owners of the firm, the former have an advantage. In particular, the suppliers are in fewer numbers as compared to the number of firms or companies in a certain industry since the suppliers of certain raw materials that are applicable in the industry are rare (Susannah, 2013, p. 65). Due to this fact, the price at which they would be selling their products is expected to be higher when compared to that at which they are supposed to be used. This is a peril to the company because it may not have made the necessary efforts to attain a full and stable market structure. In order to evade this, the company should establish a good relationship with a straight and honest supplier, and if the company is loyal to them, it will be able to achieve its goals (Business Monitor International, 2009, p. 52)

The distribution channel is another aspect that needs to undergo the changes. The currently utilized by the suppliers distribution channel affects the company because the speed through which raw materials can transfer from their original base to the firm itself is very flexible. The company should ensure that the channel it uses is very effective and legitimate in order to avoid misfortunes such as being conned and cheated by fraud dealers. The system through which the information reaches the company should also be fast to ensure that the customers are served according to their will and in time. The company should make sure that it liaises with established companies in the market to identify the best supplier or establish a flowing and stable relationship with the suppliers (Albertijin, Bessler & Drobetz, 2011, p. 63).

Competition is among other identified factors that pose a threat to the company. The tea products industry already has its fair share of players who have triumphed. The entrance of new products is bound to create a more competitive edge in the industry because the established companies fear losing customers and can do anything possible to retain them. This threat is considered to be the most diverse one because the competition is very healthy for the achievement of happiness for both the customer and the company (Okan & Ozlem, 2008, p. 151). The competition ensures that there is the introduction of healthy products that could serve to please the customers with their quality. Therefore, the company can evade the concept of competition but not to the fullest extent. It is necessary for the company to guarantee that it has a well developed competition match plan by ensuring that the products it introduces are of high quality. Tea products are the simplest in improving. The enhancement of their production involves the least amount of effort and finances. Consequently, the company saves a lot of money when producing while still maintaining and capturing a higher amount of customers (Maria & Damianos, 2009, p. 907).

Therefore, it is advisable that the company sets high marketing strategies for its product. This could serve to draw the attention of the customers and bring a better competitive advantage over the rivals. However, in order to retain the customers, high quality is an essence that should be given priority when handling the situation. The best possible way in which the company can attain this is by incorporating the use of more brand ambassadors. Although many people assume that the ambassadors are an expensive solution, regarding some people they influence, this may be an important change.

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Target Market

The target market for the products of Tamara firm is the tea consuming community in the area. People have different preferences concerning the beverage. The company has decided to focus on the parceling and processing of tea products for clients in different places. The company also has coffee consumers as a target market; therefore, the company has a task to attempt to change their views on tea after tasting with the company’s commodities.

Marketing Plan

For the effective marketing of a product, it is imperative to ensure that the 4Ps mix is incorporated. The application of these few aspects enables one to understand the best means through which one can attain success in marketing.


The first aspect to understand with regard to marketing is the product. Tea is one of the highly consumed commodities in the target market, and thus, it is better to operate using the marketing of the product.


The pricing of the commodity either attracts the consumers or makes them choose the alternative commodity, or rather a substitute. The set price of the tea bags is moderate in order to supply it to the various customers without hurting them financially. However, the price ought to be reasonable so that it will bring the company benefits.


The product is promoted by online marketing through the creation of a website. This form of promotion will include advertisements on the website which are bound to reach many people as through these adverts, that people will learn about the product regardless of their location. Shipping of the products will also be available.


The location of the plant is at Dafeng Tea Garden, which is the most suitable as some of the raw materials will come from the garden; thus, it will reduce the amount of time spent on transporting products from the raw material basis. As a result, there is the assurance of faster production and delivery of final products.

Marketing Plan Costs

Since the company will have to incorporate all four aspects of marketing in the new strategy, its management should consider that the budget will stretch. Moreover, the position of a web administrator will require a huge amount of money; therefore, it is imperative to ensure that the company has access to different financial sources.

Operation Plan

Location of the Business

As stated earlier, the location of the business is The Defeng Tea Garden. It is an advantageous place as it creates an opportunity for the workers to get to work in the time since most of the people hired come from that area owing to our social responsibility towards the people there.

Rationale of Location

The rationale taken in choosing the location is the fact that the majority of the employees live in that area. Moreover, the tea garden presents a location where the workers can get the raw materials easily. Thus, this fact guarantees of quality and effective production. However, the location has a drawback; people cannot always easily find it, and this hinders the marketing aspect of the organization.

Labor Availability

There is no shortage in the workforce provided the fact that people living in the area do not have a lot of money or other sources of income. Since people need to make a living, they work hard in the company.

Labor Requirements

The company needs to increase the number of people working in the firm because a small number of workers have a large toll on the quality as well as the speed of production. One of the most imperative aspects of the modern environment is security. The security systems of the company ought to involve CCTV cameras so that the management can understand the functioning of the company and the conditions in which people work. Physical security is also critical in case of burglary. The main processing firm ought to have trained personnel able to perform machine operations. Tea pickers ought to be employed in the company also and ensure that the firm receives the raw commodities in time.

Operational Costs

One of the costs will be paying the suppliers since they play a vital role in ensuring that they produce the raw materials and deliver them in time. Besides, the workers must be paid in time for improved efficiency in the contemporary business environment. Maintenance of machines also plays a crucial role in guaranteeing that the production and processing does not go through any forms of glitches. Transport and advertisement costs are some other vital costs to be considered and followed.

Sustainable Performance

Sustainable performance is vital for any business that aims at succeeding. The two words comprising the concept cannot operate and the reason for this is that without sustainability, performance is hindered. Moreover, without quality performance, there is the inability to have sustainable business practices. In order to create sustainable performance, one of the aspects that the management ought to understand and pay attention to is the state of the workers. At times, economic conditions may get worse to a point that the employer fails to appreciate the work done by these employees. Therefore, the employers have to understand that without the quality addressing the issues related to the employee conditions, it is difficult to achieve success. Happy employees make the best employees; therefore, showing them appreciation in the form of rewards, enables them to gain motivation and work better.

Economic Sustainability Considerations

The contemporary business environment faces many challenges economically, and this has been the state of the company since the 2008 economic crisis. In order to ensure that there is someone responsible during the hard economic times, the business authorities must employ an efficient economic analyst and financial advisor to offer tips on the best investment plans.

Socio-Cultural Sustainability Considerations

The socio-cultural sustainability considerations in the working environment involve the appreciation of the workers’ efforts. Efforts to manage these workers are imperative to ensure that the employees operate effectively and offer quality work in the projects that they engage in daily.

Environmental Sustainability Considerations

Many of the businesses in the modern environment do not have an elaborate plan on how to dispose the various toxic substances that come from the company. The result of this is the increased pollution of the environment. Some of the industries pollute the air while other pollutes the soil and water sources. Tamara firm must control quality conditions and make efforts to eradicate the toxic substances. Without a well-described elimination method of these wastes, people may have different health problems, and this may even affect the workers and their operations. The best means to deal with this issue is to have various workers in the company responsible for the procedure of eliminating the wastes.

Strategies to Reduce Negative Impacts

To reduce negative impacts, it is vital to ensure that the quality of products presented by the company is always high. Subtle products have the negative impact of having poor customer reviews and through this, there is the loss of clients and other important people that seek to ensure the company succeeds.

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Sources of Capital Required and Use of Capital Required (Start-up Expenses)

The company requires a lot of funding and the reason for this is the fact that suppliers and workers need to get paid and at the time the amount of money at their disposal is very less. One of the ways through which the company can get the funding required is by internal borrowing from the family members. Family members of the proprietors are very essential in the success of such a business and upon offering the money, can become part of the business by getting some shares. Another crucial means through which the company gets the funding it requires is by borrowing from financial institutions. Most of the successful business in the modern environment and even in earlier times did not have the funding required while starting, however, banks and other financial institutions have assisted by offering business people loans that have seen the companies flourishing. The basic use of the capital required will go towards improving the working space, paying for the licenses, and the purchase of machines.

Exit Plan

The exit plan of the business involves dissolving of the board of governors. There is the offering of dividends to the various shareholders present in the company. To care for the state of the employees, there will be a six months’ notice on the plan of the organization and allow them to seek alternative jobs while still working in the company. The proprietors will ensure that they recommend the workers to various other institutions to increase their chances of employment. The exit plan is initiated if the business does not perform as effectively as expected. The creation of a business requires a lot of commitment and it usually the hope of the proprietor to extend the business rather than close it after working for a particular amount of time. However, if the situation worsens there is the worry of running into deficits rather than generating profit and it is because of such issues there will be the need to exit the company. Exit plans always work effectively in dire situations and ensure that the associated parties are in clear conditions after the end of the contract.

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