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Healthy Potion Is An Existing Business

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Introduction Healthy potion is an existing business dedicated in producing and selling unique beverage made of some special concentrate imported from north-western China. Although the business is earning significant profits, there is a risk on the business for relying on a single product as its only main source of income. This essay will use SWOT analysis to assess the internal and external factors affecting Healthy Potion and also formulate a strategy to further expand the business whilst eliminating potential risks. It will also consider the financial implications facing the business and assessing which type of fund raising plan suits best for the business. Strategic Analysis In order to develop a successful business strategy, it is …show more content…

For example, a recession in the economy, or drought in China which results to the delay in production of goods might ultimately force the business to shut down. Healthy potion has several potential business opportunities which includes the growing market shares and developing new products. The business has been earning significant profits and have just recently overturned the startup capital cost in quarter 3 of 2016. This indicates that the company is in a good position and there is a high chance that it will perform steadily in the foreseeable future. Furthermore, the business’ weakness of having to rely only on one product for its main source of income could turn to be an opportunity for the business to develop other new range of product. Healthy potion faces threat of potential competition and production delay that may be harmful to achieving business objectives. The existence of positive economic profits through selling healthy beverage will attract new firms to enter the industry. As a result, Healthy potion will lose a portion of their market share and causing sales to drop. Furthermore, delay in production may also occur if the exporter of the special concentrate fails to produce a certain amount of the main ingredient. This may result into a further decline in sales revenue. Strategy for new business development Taking into

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