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Group Members:

Rossana Nieves Alexandra Torres Haisaa Valdes Fuentes

MAN 45597

Dr. Richard Sarabia

April 4, 2022

Fresh Fruits

Executive Summary

Fresh Fruits is a company established in California and created in 2017 to provide wholesale distribution services under the highest quality and hygiene standards, and at the best prices in the market. We are a team that imports and supplies quality fruit to the hospitals, restaurants, hotels, and industrial kitchen industries. We comply with the highest quality standards in the storage and delivery of all our products.

Mission Statement

Our commitment to our customers has led us to obtain the confidence to continue growing together with them, having well-established objectives and being at the forefront to achieve the goals set without forgetting the highest quality and hygiene standards. Our goal is to provide an optimal and personalized service, with the solid foundations that have characterized our company since its inception: Commitment, Quality, and Service. Our commitment to society is through the use of the best practices of sustainability standards.

Vision Statement

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Our vision is to achieve the loyalty of our clients through the distribution of our products, providing a quality service, in order to guarantee continuous and sustained growth in the national market. Consolidate ourselves as a benchmark company in the sector with our own business model that stands out from the competition. Fresh Fruits works to import and distribute a variety of top-quality products, with excellent service and competitive prices.

Our Philosophy

To obtain the full satisfaction of each client, our initial purpose is to comprehensively define the specific needs of each one, and our commitment is to provide the best solution using products of the best quality and competitive prices

Operational structure

In the Fresh Fruits company, the reporting structure is departmental; There are four main departments in the organization that work together to achieve the goals of the organization.

These departments are headed by the Commercial Manager, the Finance Manager, the

Purchasing and logistics Manager, and the Marketing Manager. The reporting structure in the company involves having different department heads who have the authority to make important decisions in their respective departments. Power in the company is decentralized so that decision-making is not done by the CEO of the company alone; department heads have the opportunity to make decisions that concern departments.

Our Star Products

The three products that we specialize to satisfy our customer's needs are bananas, avocados, and oranges. The bananas are imported from Guatemala, Ecuador, and Costa Rica.The avocados are imported from Mexico and the local product is Oranges from Florida.

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Market Trend

Faced with a diverse, curious, comfortable, and healthy consumer, the fruit category faces a great challenge, which is to adapt to the new demands of customers. Consumers are changing their purchasing habits, now they are more concerned about safety and traceability. in their food, that's why they demand safety. Additionally, they are oriented towards fresh products based on a low environmental impact, for example, a lower carbon footprint or adopting behaviors such as reducing waste and consuming plant-based foods. In addition to this, a strong tendency towards the consumption of foods that reinforce mental performance and the immune system.

Business Description

Our company currently deals with three products: bananas, avocados, and oranges. With these products, we believe that they will be able to satisfy the needs of our customers in

California and across the United States of America. To obtain the full satisfaction of each customer, our purpose and our commitment are to provide the best solution using products of the best quality and competitive prices. The two fruits, bananas and avocados are imported from our neighboring countries. For instance, we import bananas from the three neighboring countries, these countries are Guatemala, Ecuador, and Costa Rica. While the avocados are imported from

Mexico. Finally, the oranges are carefully selected, then purchased, and shipped from our neighbors in the East coast, Florida.Supply chain management is vital because it maintains business costs that can be applied to any type of business, including agricultural products such as fruits. As a company, the type of supply chain we choose to work with is the flexible model. This means that we can easily adjust production levels, material purchases, and transportation to maximize profits in any type of business (Eicke, Ruhnau, & Hirth, 2020). Therefore, through the organization of production and

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4 Fresh Fruit its planning, our company achieves the objectives of satisfying the demand in quantity, quality, price and, above all, on time, optimizing the use of raw materials, supplies, materials, human resources, equipment and facilities. Also seeking the growth of the company's activity over time.

Our company together with our national and international producer partners, we work with schemes that meet the demands. That is, when demand is high, we focus more on production levels and reduce whenever demand drops.Sourcing of natural resources has both negative impacts and benefits and this way, as a company, it is important to clearly understand the two factors and apply them in making decisions that revolve around the sourcing of fruits from different countries and even internally.

Especially with the immense growth of globalization, it is impossible to ignore the impacts of outsourcing globally and a higher production capacity is promised (Brears,2018). This is possible because, as a company, we do not produce the agricultural fruits by ourselves, and importing

Fresh Fruits is certain that it can serve the people of California and the rest of America. On the other hand, sourcing domestically is promising because it saves time and money. As a company we can save immensely o the shipping costs and that the products arrive on time within

California. Sourcing externally usually promotes the quality of products in this case fruits which is eventually lead to success in the business itself. However, sourcing internationally involves tax and local tariffs, shipping costs, and time which could risk our business operations.Among the approaches to production-driven supply chain strategies is at the strategic level.

This is where the production decisions take place that revolves around the infrastructure and the very technology that is required in any company. Our company management is expected to make decisions on how to produce fruit based on strategic decisions. The friction of distance generally equals distance, so short-distance moves are far more preferred than long-distance moves, this

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5 Fresh Fruit applies to the supply chain within a company. In the case of Fresh Fruits, bananas, avocados, and even oranges are imported from different countries. In this way, the distance could harm the quality of the fruits since they are perishable and would generate problems such as losses, time factors, high costs, and lack of satisfaction with the demand on time.

To meet the demand of our customers, our company complies with the highest quality standards such as ISO 22000, to benefit the way we store our products and deliver our products.Once these products arrive at our warehouse, we prepare their handling, picking, and distribution. In our stores, the correct storage of fruit, given its characteristics, is complex and requires the investment of resources and personnel for its proper functioning. Our company has storage facilities of 58,137 SF equipped with temperature control, ensuring proper storage and guarantees of food consumption. In addition, our company has a team specialized in picking: the ability to prepare and process orders in a personalized way for each customer. Correct packaging and preparation for transport are also ensured in this process. Finally, distribution and delivery:

the transportation of fruit is a delicate process that requires vehicles to be adapted to our standards. At Fresh Fruits, we have 20 vehicles dedicated to distribution throughout California, equipped with remote location tracking through GPS and monitoring systems of temperature in real-time. When we need extra help due to high demand, we work with a third-party company that offers us solutions and resources to cover our supply chain. It provides us with economic benefits and a reduction in both logistics and personnel costs when managing the supply of fruit.

Our company initiates a strategy to sell the fruits as a whole and to make fruit juice from the fruits. With this strategy, our company will be able to associate with new businesses such as supermarkets in the distribution of our products. Also, we intend to open shops in major sub-towns in the state of California. This idea will enable us as the company to distribute our

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6 Fresh Fruit products and most importantly our customers will be able to get our products in season. This will create a greater customer experience hence resulting in improving our business.Business plan

The business of selling imported fruits in the country can sometimes be difficult as it requires a large investment, the management will need a sophisticated management plan to create the surety of the intended goals. Our company currently has a good financial plan that ensures that every currency invested in the business is used correctly and is accounted for correctly. The company will require a large amount of capital both for expansion in other states and to sell the fruits as a whole and to make fruit juice, therefore a good plan must be made with consideration of all business aspects such as concession of licenses and the acquisition of other permits for the business. As our company is primarily engaged in the import business, it is important that a serious background check is carried out and market prices are compared.

Financial Forecast

One of the most important goals of our company is to have a steady financial flow while profit maximization is the main objective. The company, therefore, has a forecast for profit-making right from the beginning of the business which can be achieved through various strategies. The main strategy of the business is to reduce the money channel process so that the finances are handled by a selective few. This will encourage accountability and promote transparency in handling finances. The management team consists of a financial manager that has a deeper insight into financial management. The company has a sophisticated financial program such that all records are recorded safely on computers, the most suitable method will be the use of personal capital. This is an accounting system that allows the user to keep track of all

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7 Fresh Fruit financial accounts on one platform, such as bank records, mortgages, and investment accounts (Ragnedda,2018).Marketing plan

Our company uses a simple marketing strategy to reduce costs while reaching the largest market possible. One of our first goals will be to establish a social media marketing plan. This plan must include an audit of the situation of Fresh Fruit's profile, the goals that we decide to meet in the future, and all the tools that we want to use to meet them. Developing a marketing plan on social networks will allow the marketing manager to better evaluate the effectiveness of our actions, but it will also be a measure with which we can determine if we are being successful or not. In addition, the business will utilize radio stations in advertising and television channels occasionally. Posters will also be used to advertise the business and products thus ensuring a wider market.

Technologies and innovations

Technologies and innovations are expected to be adopted by businesses such that they could aim at preventing challenges within businesses depending on the type of business. This applies to our company such that it is aimed at supporting our goals of offering fresh fruits within California and other parts of America. As Fresh Fruits, we will adopt technologies supported by blockchain and maps to locate and follow up on the delivery of the fruits especially those that come from other countries. This ensures that we can communicate to clients on the expected time frame and follow up on the products to be safe from losses and have a basis when issues arise from the transport companies.

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Mitigating supply-driven imbalance is key and Fresh Fruits plans to address the issue by investing in the right technologies that would predict market trends and supply. Additionally, as a company, we aim at diversifying our suppliers of fruits to ensure that we incur minimum chances of lacking products resulting from suppliers' challenges. We also plan to promote local sourcing of all types of fruits and not only depend on international sources, but the management will also track down the supply chain to understand the threats and act upon the early enough. To mitigate demand-driven imbalance we aim at focusing on several ways such as undertaking business impact analysis, assessing, and monitoring new and upcoming suppliers to determine quality levels as well as costs, and consistently asking clients about the demand for fruits in quantities and tracking the details to mitigate demand imbalance.

The expected outcomes that back our approach

The expected outcome behind our approach is our company tends to open branches across the state of California. We strive to make our product accessible to our customers. Also, in five years, our company intends to extend our services to the states that are neighbors of

California (Oregon, Nevada, Arizona, Mexican state, and Colorado). In a ten years period, our business intends to offer services in all the states of America.Risks

Every business organization is prone to certain risks that make the organization strain while trying to maximize profit and productivity. Even though fresh fruit is a global company and has continually been growing, it has been faced with some major types of risks, such as; production risk, which is related to a company's productivity, yield, and the level of output being lower compared to the company's expectations. This kind of risk arises from unfavorable weather

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9 Fresh Fruit conditions such as excessive rain during and after harvest or even lack of rainfall, meaning zero or reduced production. Bananas and avocadoes only do well in rainy seasons; thereby, if there is no or there is little rain in a given year, it will mean that our company will be short of fruit and thereby meaning reduced sales the company. Nevertheless, oranges do well in moderate climatic conditions, and if there is too much or no rainfall, orange production will be affected, affecting our company's productivity. Damages caused by insects, pests, and illnesses threaten agricultural production. We have experienced a decrease in the quantity of fruits produced by our business partners, even though we have taken precautionary measures to avoid this. Our organization has conducted sufficient studies to determine the most effective pesticides to protect fruits from being attacked by pests and the most effective fertilizers to improve production. A further type of risk that we face is marketing risk, which refers to the possibility that we will lose the market for

our product or even that the market price will be lower than our estimates or that we will be unable to sell our goods. We are compelled to sell at the market price, which is lower than the price we had anticipated and hence lower than the profit we had anticipated, reducing our expected profit. Additionally, the market risk might arise due to the inability to find suitable wholesale buyers or the relocation of clients. As a result, when our fruits are left in the store for an extended period due to a lack of demand, they may become damaged due to their perishable nature, resulting in a loss for the company. Financial risk is also a major concern to our business whereby we may sometimes lack sufficient funds to cater for our expected expenses. It might also result from making low profits, increment of input costs, too much borrowing, and unfavorable exchange rates. In addition, legal and environmental risks such as failure to meet business contracts and agreements have been a major risk faced by our company. Some business

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10 Fresh Fruit contracts will strain a company to the extent that they will only favor one party and be unfavorable to the other.Business structure

Business structure refers to the legal structure of a business or any organization in a given government. These legal rights are the major determinants of the activities undertaken by the organization. Business owners are obliged to take into consideration of the business needs and goals and have a better understanding of their business structure. Therefore, our company is a general partnership business structure where the partners take the responsibility for managing the company. Our company comprises two partners who work tirelessly to see the business succeed.

The fact that the company does not pay taxes directly through the income and rather the tax is deducted from individual losses or profit makes our company more aggressive in working hard to maximize its profit and reduce losses. We are also personally liable for the partnership debts and obligations, take loans and make decisions that affect the two partners. Together with our partners, our organization shares profit every financial year based on the agreement made before the start of the company, where we are the biggest shareholders with seventy percent ownership of the company.

Financial information

Financial statements of a company provide crucial information to the investors concerning revenue, costs, profitability, amount of debts, and its ability to meet its financial obligations. Our partnership business sources its capital from the members of the company. We also get it from savings, stocks, and bonds; we also get funds through loans, which enables us to carry on activities when we are in short of funds. For our company to evaluate its financial

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11 Fresh Fruit information effectively, it makes good use of the three financial statements, which include; balance sheets that account for available assets in the company, and also we are always vigilant about the value that each asset brings to the company through the products that we offer. The company also takes into account the liabilities that it owes to others and makes sure that it has paid them in due time to avoid being denied access to credit. In addition, our company does annual access to its financial performance, its financial position, and its business flow to assess whether the business is growing stagnant or if it is making losses; thereby, financial information is very important for business continuity.

Conclusion

In conclusion, the human being should consider the consumption of fruits as an important practice, since they are naturally important for human health and can help your body fight diseases such as obesity, thus maintaining body weight and helping to reduce cholesterol. and blood pressure. The three types of fruits that our company sells play a very important role in the human body. Avocados provide oil to the body; bananas and oranges contain natural sugars and are a good source of fiber needed for food digestion.

Fresh Fruit's goal is to grow as a company and strengthen ties with our business partners.The relations between our company and our national and international suppliers are very close in the field of cooperation. In terms of quality, our suppliers meet or exceed the expectations or requirements of our purchasing team. In addition to meeting our current requirements, our suppliers demonstrate continuous improvement in their performance. Thanks to the contribution of our suppliers and our quality policy, our company has the ISO 22000 certificate.

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This ISO 22000 certificate helps us to the current prestige of our company. It enables us to build trust between current and potential customers based on the company's ability to consistently supply our agreed products and/or services. In addition, it helps us increase customer loyalty, through repeat business and the reference or recommendation of our company.

Finally, behind Fresh Fruit, there is a great human team that works aligned with the well-being and growth of our company. The image of our company is constantly improving without forgetting the solid foundations that have characterized our company since its inception:

Commitment, Quality, and Service.

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Rerences:

Brears, R. C. (2018). Natural resource management and the circular economy. Springer.Eicke, A., Ruhnau, O., & Hirth, L. (2020). Electricity balancing as a market equilibrium:

Estimating supply and demand of imbalance energy.

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