Start-up Budgeting. Accounting, Finance, SPSS Term Paper

Start-Up Budgeting
Student Name
Institution Affiliation
Start-Up Budgeting: Charge Energy
Across the globe, there is increased desire to move towards healthy living by engaging in physical activities and eating healthy. In particular gymnastics has been identified to play a critical role in healthy living. This has seen a continuous growth in the consumption of energy drinks, which have been identified, as critical in the provision of energy to the body not only for gymnastics but also athletes. Additionally, it improves mood, enhances one’s physical endurance, reduces mental fatigue and increases reaction time. A report released in 2019 by Beverage Industry indicated energy drinks had recorded a steady growth with average sales of more than $11.7 billion in U.S. multi-outlets for the 52 weeks ending June 16, an 11.3% increase over the prior-year period. Further the market is projected to grow at an annual growth rate of 7.1% between the years 2020-2025 (Harfman, 2019). In essence, energy drinks are gaining traction among the population. This research proposes a start up by the name Charge Energy. Charge seeks to replenish water, carbohydrates and electrolytes in people who work out or participate in physical education.
Value Chain Analysis
Through Porter’s value chain analysis Charge Energy can identify the importance of different company activities in the product delivery process.
Primary activities are directly involved in the production and sale of the company product to the target customer groups. Analyzing these activities can enhance the performance of the company (Kumar & P.V, 2016). The first activity is inbound logistics, which proposes wall to wall manufacturing. Wall-to-wall manufacturing entails onsite manufacturing and filling up cans and saving up a lot of transport revenue. On outbound logistics, since Charge Energy is a relatively new company; the products will be sold on a local scale in the United States. The Energy drinks will travel to various destinations by train. On marketing and sales, ‘Charge up your energy’ is a marketing slogan that will be used to represent the company’s communication message. Television and online platforms will be used to transmit this message. Services: The organization will also offer limited post-sale services due to the nature of the product and the industry involved. The official site of the organization contains a contact page where clients and different partners contact the organization with respect to different issues.
Secondary Activities a are aimed at supporting activities that play a vital role in coordinating the company’s primary activities. The first one is firm infrastructure in which the company aims to produce a high quality energy drink that has little or no negative health impacts by toning down on the caffeine content in production. Secondly, human resource management which will recruit workers with noteworthy talent, holding seminars for workers so as to integrate a work culture that revolves around dedication and providing incentives for hardworking employees. Lastly, is technology development in which the company will integrate IT into production, marketing and distribution activities (Kumar & P.V, ...