Fizzy Water Case Summary

Fizzy Water is the largest independent provider of Fizzy Water Beverage solution in the United States. The company has been recently sold into the hands of a private equity firm and we as managers of the company, are ready to continue to provide growth and intrinsic shareholder value, while at the same time providing consumers with quality sparking beverages, enhanced waters, juices, energy drinks, sports drinks and tea products. We believe the success of the company and the quality products and services provided to customers nationally, can now be expanded internationally. In maintaining our competitive presence, and in order to offer a competitive quality products with a cost effective alternative, we are incorporating a three (3) year

This overall decision was based on our prices keeping up with inflation and costs of suppliers and operational cost as well as keeping our customers in mind, while in maintaining long-run relationships with predictable prices. To further boost sales, we have modernized our marketing efforts in the international markets which caused a slight increase in our fixed advertising dollars rate spent from $0.0305 to $0.0457. With a proven positive relationship between the amount of advertising dollars spent and revenues earned, we believe this was a solid based decision. In further reducing cost and improving efficiency in our supply chain, we have lowered our financial expenditures ranging from categories to telephone costs, to postage and delivery and office supplies. By using efficient strategies and harnessing technology improvements, we have improved on maintenance and repairs for example our employers improving on their learning curves and being efficient on production, which improved direct labor hours and eliminated waste on material costs. Costs have gained slightly in our SG&A for example in personnel, which went from ($92,308,951) in Budgeted Year One to ($104,496,328 in Budgeted Year Three) due to the increase in salary rates as a result of an improving economy. Another area where prices rose were the COGS rate where the price of materials increase from ($113,196,181 in forecasted budgeted year one to $134,138,652 in year three) and a more detailed breakdown can be found in the production