BUS 5116 Written Assignment 4 PDF

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Building an environmentally friendly business is an absolute must in today's world conditions. Climate change, the coronavirus, and various natural disasters have encouraged every business person to change the direction of their business to be environmentally friendly while still generating profits ...

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Strategic Planning of Bate Crispy Chicken BUS 5116 Operations Management - AY2022-T2 UNIVERSITY OF THE PEOPLE December 27, 2021

Introduction: Building an environmentally friendly business is an absolute must in today's world conditions. Climate change, the coronavirus, and various natural disasters have encouraged every business person to change the direction of their business to be environmentally friendly while still generating profits and growth for the company. Business Nextdoor (2021) states that going green and concentrating on sustainability measures are beneficial to the environment and the company. According to a recent Nielsen survey, 81 percent of consumers believe it is vital for businesses to embrace environmental policies and practices. As many as three out of every four Nextdoor neighbors say brands should be doing more to address environmental challenges.

Running a business by prioritizing environmental issues is not without sacrifice. It takes adequate natural and human resources to be able to implement it. This is where the dilemma then arises. On the one hand, companies need to move faster in expanding their business and making as much profit as possible. However, on the one hand, appropriate actions and programs are required to remain environmentally friendly. Therefore, a proper strategic plan is needed to combine these two things effectively. The Corporate Finance Institute (2020) describes strategic planning as the skill of developing precise business plans, putting them into action, and analyzing the results to a company's overarching long-term goals or wants.

The Case and Major Issues Our company is engaged in the food industry, namely crispy fried chicken. The desire of the company's shareholders to achieve a profit of more than 15% per year is a reasonably formidable challenge. Shareholders expect the board of directors to develop a reliable business strategy to maximize profits. However, environmental issues are one of our main priorities, considering that the business we run involves many ecological elements, such as breeding chickens, processing livestock waste, and supply chain. Therefore, the following is a 5-year strategic plan that I have designed to meet shareholders' expectations while paying attention to environmental issues.

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Product Name: Bate Crispy Chicken

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Goals: To become a market leader in the fast-food industry in the form of crispy fried chicken that generates profits of up to 20% per year through environmentally friendly business activities.

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Strategic Plans: Year 1: Our company will still use suppliers to provide chicken supplies and product packaging in the first year. We will choose a supplier with a track record of good chicken farm management and packaging made of paper, not plastic. This year, the company focuses on improving the quality and range of our crispy fried chicken products by conducting market research.

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Year 2: After going through the product introduction phase to customers in the second year, the company will start exploring opportunities to produce its raw materials fully and buy a paper packaging printing machine that is believed to be more environmentally friendly. According to Pola (2020), paper bags can reduce the amount of plastic waste because they are easier to decompose than plastic packaging. In addition, paper bags also look more luxurious than plastic packaging. The purchase of this paper bag production machine requires a significant investment, but in the coming years, the results will appear because paper bags are cheaper than plastic in terms of production costs.

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Year 3: After successfully producing its paper bags for packaging crispy chicken products, the company will continue its mission to create its raw materials. The company will build a chicken farm with a close house system. This system is considered environmentally friendly mainly because it does not produce odors that disturb the surrounding community. This compact house system is also considered to create a more efficient chicken density in terms of productivity. In addition, the growth conditions of chicken weights are evenly distributed, and the mortality rate of chickens is also low because the

room temperature can be controlled. (Kholisdinuka, 2021). The company decided to employ people living around the farm to empower residents.

This year, the company will be more intensive in using social media to promote company products. Companies will take advantage of google ads and paid partnerships with influencers. 

Year 4: In the fourth year, the company will focus more on producing an integrated and efficient waste treatment system so that waste is not only considered as a result of production disposal but can also be of economic value. Our company will apply the 3R method (Reduce, Reuse, and Recycle) and a circular economy. Pertiwiningrum (2019) mentions that the circular economy focuses on reducing waste with the 3R principle and how to design the use of waste and its by-products into products that are economically valuable and have high selling value. Some of the wastes that can be sold include livestock manure, feed residue, rumen contents, skin, bones, and biogas sludge that can be used as by-products with economic value.

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Year 5: This 5th year, the company is expected to have an integrated production system, environmentally friendly waste treatment, economic value, and a growing market segmentation. This year, the company began to dare to expand to areas further away from the production center. The company will also intensify promotions through digital media to continue to be at the top of the public mind. In addition, the company also does not forget always to put forward the slogan of caring for the environment in every campaign it carries out.

Conclusion: The strategic plan mentioned above will undoubtedly experience various obstacles and challenges in its implementation. Therefore, flexibility is needed by all company personnel to be able to adapt to changes in the environment that occur. Company employees are required to have good problem-solving skills and creativity in carrying out each company program to achieve the goals that have been mutually agreed.

REFERENCES Business Nextdoor. (2021, December 22). Importance of Going Green: Why your business should become environmentally conscious. Nextdoor Business - Grow your business with Nextdoor. Retrieved December 27, 2021, from https://business.nextdoor.com/local/resources/importance-of-going-green-why-yourbusiness-should-become-environmentally-conscious Corporate Finance Institute. (2020, October 12). Strategic planning. Corporate Finance Institute. Retrieved December 27, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/strategy/strategic-planning/ Kholisdinuka, A. (2021, October 26). Di Pongkor Ada peternakan Ayam Ramah Lingkungan, Seperti Apa Tuh? detikfinance. Retrieved December 27, 2021, from https://finance.detik.com/berita-ekonomi-bisnis/d-5783158/di-pongkor-ada-peternakanayam-ramah-lingkungan-seperti-apa-tuh Pertiwiningrum, A. (2019, December 27). Agar Pengelolaan Limbah Peternakan Bernilai Ekonomis. Agar Pengelolaan Limbah Peternakan Bernilai Ekonomis – Fakultas Peternakan UGM. Retrieved December 27, 2021, from https://fapet.ugm.ac.id/id/agar-pengelolaanlimbah-peternakan-bernilai-ekonomis/ Pola. (2020, September 17). LEBIH Untung Bersama Paper Bag - Pola -. POLA. Retrieved December 27, 2021, from https://polacup.com/lebih-untung-bersama-paperbag/...