Key Strategic Issues

5.1 Sustainable Competitive Advantage 3MBA, Inc. will "succeed" because of the following:

A alliance with the world's largest food company providing it with credibility and well established distribution channels to establish the business in its introduction stages. Unique and innovative beverage appliances Strong team of committed people

5.2 Basis for Growth The basis for growing the venture is reflected in the following two strategies: Priority 1: continue research and development of new and innovative products to meet the current and future needs of beverage appliance consumers. Priority 2: Enter new geographic markets globally(Canada, South America and Mexico).

The Marketing Plan

6.1 Marketing Objectives

Establish a strong presence in the domestic market Use the Nestle association as a +point for entry into the market Utilize acquired market knowledge and presence to attract non-Nestle customers both through Nestle affiliations and through the efforts of 3MBA, Inc's own sales force. Establish significant high-margin sales.

6.4 Marketing Strategies The key is to identify individuals in food and catering organizations with decision-making authority to acquire beverage appliances. These individuals can be reached through personal selling, direct mailings, trade shows, and business calls. The marketing approach will demonstrate the benefits of the 3MBA, Inc. products. Emphasis will be placed on how the La Barista creates superior cups of coffee, faster, consistently, and with less staff training. 6.4.1 Products

3MBA Inc.'s product offerings will be positioned as cost-effective, reliable, operational solutions to the current and future needs of the retail beverage industry. La Barista and its successors will be first in current soluble coffee technology, able to rival the most established companies through their superior tasting coffee and superior convenience, speed, consistent output, ease of use and reliability, supported by a committed training and maintenance force. 6.4.2 Price

La Barista will be priced competitively at $6,500 This pricing strategy will be high enough to convince customers that they are purchasing an effective high-quality product The MVU's price is the result of market research conducted by Nestle, the primary consumer,

6.4.3 Distribution

Product distribution will be facilitated by utilizing the distribution channels of the large corporations with whom we secure strategic alliances. This will provide nation wide coverage. This strategy will ensure a presence in the market that increases awareness and builds demand.

6.4.4 Promotion 3MBA Inc.'s entry into the market will be supported by a campaign to establish its profile in the beverage appliance industry. This will include the following:

Seek out the decision-makers in large food and beverage corporations Direct mail corporate material to the above Undertake a campaign of personal selling, targeting decision-makers Advertise in industry journals, on the Internet, and on our website Attend/sponsor exhibitions and trade shows Continual PR: press write-ups; personal interviews; testimonials; product trials

Production Plan

Main plant will be located in Delhi.

3MBA, Inc. will outsource production aspects where possible. Components are delivered on a "just-in-time" basis. Quality checks are in place throughout the assembly process

7.2 Plant Location and Layout

Based on the five divisions (MVU assembly, La Barista) will be housed together. A total floor plan of 2,400 square feet will be sufficient to house these functional areas of assembly, Administration, R & D, and Warehousing Simplified factory design

7.4 Production Scheduling The manufacturing process is supported by sophisticated production management software. It consists of a fully relational database which keeps track of inventory and invoicing and it produces detailed job cards for each day's operations. The system enables management to instantly access:

All parts and materials on hand Raw materials required to meet orders placed Suppliers database with lead times, credit terms, price and contact details Under and over stock warnings Payment due date and credit position Quality control is a standard procedure at the completion of every task.

Future Expectations

We expect that we shall be able to increase price @ 15% per annum, but raw material cost will also increase by 12% (with present inflation rate in perspective). Thus every year our net gain will increase by 3%. We shall also able to increase our sales by 25% every year for first 4 years,