TASK 1 – Bell development plan

Prepared by Chief Development Officer

1. Purpose of this document

Apple laboratories’ development plan was created by the Board of Directors and the Top
management with the intention of providing guidance for implementing initiatives through the
next 2 years. This document is aligned with the strategic objectives and goals of Apple
laboratories and it must be and review and updated according to the strategic plan.

2. Brief History

Apple Laboratories is a company founded in 1995 and based on producing and

commercializing cosmetics and toiletries with the intention of accomplishing its customer
necessities. Apple Laboratories provides natural skin care products and toiletries for male and
females, creating our hard-working products by selecting natural ingredients that work in
synergy with the skin, and extracting them in a way that retains their goodness. Better yet,
every step of the process used to create our effective skin care products is done in an
environmentally friendly way. All our efficacious products are created using high quality
botanical extracts and essential oils, and treat a number of skin issues and concerns. The
brand’s pure ingredients include coconut oil, olive oil, argan oil, spirulina, acai and goji berry.
Apple Laboratories will focus on environmentally customers who take care of it and the
nature.

Apple Laboratories’ sales represent a small part of the market with them around $ 11.3 million
from the $ 3.1 billion of Australian expenditure last year in Cosmetics and Toiletries. However,
the sales growth has been gone up in the last three years estimating sales equivalent to $ 12.8
million for the next year, investing a great amount on this constantly in environmental
programs and reducing its ecological footprint.

3. Mission

Apple Laboratories is committed to a continuous improvement process of its management

quality system through human resources capacitation and technological development,
complying with the Australian regulation and providing cosmetics and toiletries with the
highest quality being characterized as friendly with the environment. Apple Laboratories is
also committed to preserving the environment and reducing its ecological footprint constantly
improving its practices and procedures.

4. Vision

Apple Laboratories aims to ceaselessly developing high-quality, natural, innovative cosmetic

products friendly to the user and environment through taking over the leading market position
in the segment of cosmetic care products on the Australian market and other markets of
 former Australasia; becoming the first choice of end users as well as professional users;
increasing our market share and corporate reputation in our other existing markets.

5. Unique Value proposition

Apple laboratories has always strived not only to meet our high consumer expectations, but
also to go beyond, bravely facing the challenges that lie ahead, and implement innovation for
a greener advancement. Innovation with a sense of purpose and enthusiasm taking into
account the environment and our children’s future are our sources of growth that makes us
unique in the market.

6. Strategic priorities

6.1. Change the worldwide reputation of Apple Laboratories.

6.2. Reach the new target market - lower class customers.

6.3. Increase production capacity.

6.4. Stabilize the position of social responsible company – protect the environment.

7. Roles and responsibilities of the Development program.

The development program is responsibility of everyone Apple employees’ and specially senior
management, who is in charge of executing and accomplishing strategic goals committed to
Apple’ Mission and Vision.

The Board of Director is responsible for the implementation of this plan and making the
resources available for its success, supporting and every time the strategies and objectives
described in this plan.

8. Environmental conditions

Apple’ products belong to the group of personal care products. This market is basically divided
into four major sub-sectors. Among first sub-sector belong face care products, which are very
important as “the beauty of a person is described by the look of one’s face.” The secret is not
within the make-up and covering the deficiencies, but within the taking care about the skin.
Therefore this sub-sector includes mainly soaps, face creams and other products helping to
have healthy skin of the face. The second sub-sector is Hand and foot care products, this
segment is growing up every year, and therefore cosmetic companies put severity to this part
of the industry. The third sub-sector is hair care products, which is the segment with largest
jump from the period when the conditioners were developed. The last but not least is the
cosmetic sub-sector, which includes products such as eye makeup products, face makeup, and
lip makeup products.

Within the product strategy it is needed to continue with the social responsible approach. The
company is using principles for saving the environment in the following ways: reducing our
global environmental footprint, including the issue of climate change, by recycling, reducing
 waste, conserving energy and water, and monitoring and reducing greenhouse gas emissions.
Apple’ facilities are developed using green building standards.

Apple Laboratories provides natural skin care products and toiletries characterized as Eco-
certified and using sustainable raw materials, that are produced with respect for people and
the environment.

Moreover Apple laboratories in 2009 began with launching the approach “Hello Green
Tomorrow“, by which they empower a global environmental movement to nurture future.
Because of the good results with this type of the developing products, and the nowadays
trend to produce products that are environment friendly, the company can reach even more
upper class clients, which is the company’s goal and objective for this business plan.

Other important step is to point out that the products developed by Apple do not consist of
any raw ingredients that were testing on the animals. Apple also cooperates only with the
suppliers that supply products which were not testing on the animals. The company tries to
find out all other possible ways for testing and except the same from the companies they are
cooperating with.
9. SWOT analysis

Apple’ SWOT analysis included all the strengths, weakness, opportunities and threats.

Internal focus
Strengths Weaknesses
 Strong brand name  Not strong in direct selling.
 Natural and ecofriendly products  Lower production capacity.
 Strong position on the Australian market
 ISO 14001 and GMP certificates for our
factory developing the products in
Melbourne – Australia. (Assurance &
Certification, 2010).
 Know-how (22 years of experiences in the
cosmetic industry).
 No animal testing.
 Pro-environment approach.
 Cooperation with the best producers of
ingredients needed for Apple products.
 Strong Marketing.

External focus
Opportunities Threats
 To develop and adapt employees direct  Too many name Brands claiming natural
selling skills based on the region, country products that make harder to compete
and culture. with them.
 Lower or Higher class of the customers  If the economy gets to be too low then it
not launched so far. will be very hard for people to want to
  Expand to mixed cosmetics stores and spend their money on our natural
pharmacies such as Chemist Warehouse products.
and David Jones.  New competitors entering the market

10. Development priorities

 Design and build a water treatment plant to reduce environmental impact.

 Being recognized worldwide as a green company in terms of its clean production
methods and natural products.
 Support farmers and vulnerable communities that provide our raw materials.
 Increase efficiency and productivity methods for developing lower price products.
 Increase production capacity acquiring new machinery.

11. Key constituents

Clients
Providers
Employees

12. Development Audit

Apple Laboratories
Income Statement for the year ended 30th of January 2017
Revenue from operations $ 12.800.000
Advertisement Expenditure $ 417.000
Production Expenditure $ 712.000
Research and Development $ 440.000
Personnel Expenditure $ 2.880.000
Travel and Allowances $ 3.060.000
Other $ 440.000
Credits $ 400.000
Profit Before Taxes $ 4.070.000
Tax expense $ 835.000
Gross Profit $ 3.245.000
Balance Sheet
December 31, 2016
ASSETS LIABILITIES
Current 31/12/2016 Current 31/12/2016

Current Assets Current Liabilities

Cash - checking Acct 340.000 Accounts Payable/Payroll 600.000
Cash - Money Market 525.000 Credit Line 180.000
Accounts Receivable 3.380.000 Current Portion of loan 260.000
4.205.00
Total Current Assets 0 Total Current Liabilities 1.040.000

Fixed Assets Long - Term Liabilities

Office Equipment 550.000 Notes Payable 596.000
Vehicles 340.000 Less Current Portion -88.000
Infrastructure 3.456.000 Total Long - Term Liabilities 508.000
4.346.00
Total cost of Assets 0
Total Liabilities 1.548.000
Less Accumulated Depreciation -359.000
EQUITY
3.987.00
Total Fixed Assets 0 Owner Equity
Paid in Capital 264.500
Other Assets Retained Earnings 0
Stock 430.000
Deposits 220.000 Total Stockholder Equity 264.500

Total other Assets 650.000

9.201.00
TOTAL ASSETS 0 TOTAL LIABILITIES AND EQUITY 1.822.500

FINANCIAL RATIOS

Current 31/12/2016 Current 31/12/2016

Current Ratio 4,04 Debt (liabilities) to Equity 5,85
Assets to Liabilities 5,94

The audit found a Lack of customer service training, where no training provided for some
employees, It should be mandatory for all public facing positions.

We discover there are limited opportunities for employees to move up within the
organization, training policy does not allow employees to take courses not related to their
current position.
 Financially the company behaves correctly and the finances are moving forward. However,
Nearly 100% of all Apple department budgets are underspent by an average of 20% annually,
which means some projects were not executed or eliminated.

Production cost has slightly increased. The reason of this is the production capacity of Apple
Laboratories has reached its limit and too many extra shifts were scheduled in order to comply
with the sale demands.

Consumption energy and power supply have plummeted because of the investment in solar
panels made a few years ago. It proves the need of continuing investing in green methods and
implementing procedures for making a better use of the natural resources.

13. Development tactics

13.1. Change the worldwide reputation of Apple Laboratories.

 Increase the advertisement – all above the line communication.

 Implement Individual philanthropy activities - campaigns, actions and conferences that
bring more information about Apple Laboratories.

Philanthropy activities
Motivational speakers, Celebrities participating Professional discussions
professional seminars, e- in talk shows and and articles regarding to
commerce, different describing the products marketing, financial,
leadership programs. or company, offering free product and other
products. strategies.

13.2. Increase production capacity.

 Replace old machinery for more efficient equipment.

13.3. Reach the new target market - lower class customers.

 Develop a lower price line

13.4. Stabilize the position of social responsible company – protect the environment.

 Reduce the amount of new plastic used in the products and replace it for recycled
plastic.
 Increase from 30% to 40% our solar energy production.
 Design and build a water treatment plant for Apple Laboratories.

14. Timeline
 14.1. Short-term Tasks
 Design a seminar and a conference quarterly.
 Design the water treatment plant
 Quote with different providers recycled plastic containers for cosmetic products
 Budgeted and implement a fundraising plan for purchasing the solar panels for
incrementing our solar energy production.
 Execute a production needs analysis for upgrading machinery and more efficient
machinery
 Quote with supplier new machinery according to the result of the production
needs analysis.
 Buy the new machinery in accordance with Apple’ management directions.
 Perform a market research for a new Apple’ lower brand price.
 Design and develop lower price products according to market research results.

14.2. Mid-term Tasks

 Implementing a talk show with a well-known celebrity
 Build the water treatment plant
 Execute the validation and qualification of our water treatment plant
 Implement a recycle program for labels and containers
 Install new equipment and machinery
 Launch lower price products to the market
 Purchase solar panels according to financial projections.

14.3. Long-term tasks

 Monitor water management plant efficiency
 Perform the Validation and qualification of the new equipment according to Good
Manufacture Practices.
 Monitor and evaluate production efficiency
 Promote and advertise lower price products.

15. Financial Projections

Development plan expense Budget 2018

Design a seminar and a conference quarterly. $55.000

Design the water treatment plant $30.000

Design and develop lower price products according
$210.000
to market research results.
Perform a market research for a new Apple’ lower
$13.000
brand price.
Buy the new machinery in accordance with Apple’
$330.000
management directions.
Quote with supplier new machinery according to $12.000
 the result of the production needs analysis.
Execute a production needs analysis for upgrading
$3.000
machinery and more efficient machinery
Quote with different providers recycled plastic
$1.000
containers for cosmetic products
Budgeted and implement a fundraising plan for
purchasing the solar panels for incrementing our $10.000
solar energy production.
Total Expense $664.000

16. Additional Resources Needed

 There is a need of hiring an environmental engineering who takes care of the water
treatment plant construction, solar energy production capacity and upcoming
environmental projects.
 It is necessary to increase the budget for Research and development department
because of the new lower price brand.
 It might be necessary the hire of 2 laboratory technicians for supporting research and
development department activities.

Part B

 What support for the implementation was provided by the senior management?
 Senior management was constantly involved in all the changes perform into the company.
Managers took the leadership in some projects like the Production manager was in charge
of the production needs analysis and its prior implementation, supporting the purchase
and all the training needed for the correct operation of the equipment.

 How was the implementation received by staff?

Overall the changes were well assimilated by the staff. However, Production staff was a
bit resistance with the new models and changes in the production methods brought with
the new machinery.

 Were there any unforeseen problems that arose during the implementation?

Yes, they were. Some employees were overload with work because of the amount of
projects that were running at the same time.

 How were any problems arising deal with/managed?

There was necessary to get the Board of directors involved and authorized an extra
amount of money for the temporary hiring of assistants who helped the specific projects
and relieve pressure in those work overload employees.

 What consultative processes were undertaken during the implementation?

There were two forms of consultative processes implemented, focus groups and surveys.
The former were working on the research and development of the new lower price brand
line, in those groups brainstorming were the most useful tool for achieving the goals and
objectives.

Surveys were performed by an external stakeholder in order to illustrate the employee

perception of the changes being implemented.

 What team development activities did you utilize? Were these successful? How could
they be improved?

Principally, trust was used for building and developing Apple’ teams and I could say this
was the best technique. Apple’ Managers always spoke honestly and acted right. It
developed an environment where the employees felt confidence and were opened to talk
and express their opinions. It allowed managers to have a better understanding of the
member of the team, including their strengths and weaknesses.

Apple also enhanced the collaboration between members of the team where everyone
works towards the same purpose, and aligned the performance of everyone in
accordance with achieving the goals and objectives of this development plan. It could be
 improved creating more social activities that allow employees to know each other much
better.

 What strategies were in place to manage conflict between individuals and/or groups to
achieve consensus or agreement?

The generated conflicts were managed by the Human Resources Department. Conflict
between peers was the most common conflict and they were solved using collaborating
methods.

 Describe the intervention undertaken?

The process for solving issues was to talk with each part and heard their opinions and
views. It allowed the mediator to understand the problem that was arose. Then a meeting
was arranged with both parties and encouraged them to speak each other. In this meeting
after discussion between them and proper intervention of senior management, an
agreement was reach. In most cases the agreement was successful. However, there was a
case in which the employee quit the job a few days after the agreement.

 Outline the brainstorming activities undertaken for producing alternative proposals.

Brainstorming activities were performed for coming up with the new brand name. The
selected name was AQUA.

The research and development department brainstormed for having different proposals
about the main claims that were going to give value to the new products and characterize
them.

Finally, with the installation of a new reactor of 2 tons, the power supply in all the
company had to be suspended for 35 hours. A brainstorm activity was done for coming up
with different proposals for allow the organization not to be delayed in their chronograms
and schedules.

 Outline any negotiations for agreement on outcomes

There was a negotiation with employees when the power supply was shut down because
there were 2 weekdays off. The negotiation was in order to catch up with the production
schedule so employees had to work the whole weekend. Compensation was provided to
all employees affected by this change.

Part C

a. Survey and Results

1. What is the mission statement or goal of the organization?

2. Do you think change is important in an organization? why?
3. Did your workplace ever go through the process of change?
 4. Did you know about the changes being done?
5. How did they decide that an intervention was needed? What was the causes
or reasons that lead for the need to change?
6. Did you have a professional Organizational Development or specialists to help
you in the implementation of change?
7. Were you involved in the decision process for change?
8. What are your reactions, attitudes towards change?
9. Did you face certain challenges, barriers, restraining forces or resistance to
change?
10. Did those changes yield to positive results?
11. Has your workplace change for better or not?
12. Will you support a future change into your workplace?

Overall the survey illustrated that the changes being done did not generate a loss of support for
organizational development. On the contrary, employees understood that the commitment of
Apple Laboratories with its customers and environment involves continuous changes and it is
necessary a constantly improvement in methods and techniques that help the growth of the
company.

b. Minutes of the meetings

There were 15 meetings during the development program in which every participant,
mainly senior managers from different areas of the companies brought issues and
comments from their departments, that allowed the company to have a feedback and
boost peoples leadership and employees motivation. These meeting were the key for
having top management connected with their employees and taking into account
their opinions about the development plan.

c. Evaluations

The development program was evaluated in terms of timelines accomplishment and

expenses budgeted. Overall the timelines were followed as desired, with only a
slightly delayed in the construction of the water treatment plant which presented a
15 days delayed because of shipping issues in Melbourne port.

d. There were no modifications to set out activities.

e. Senior Management communications

Senior management reinforced the changes that were done through the following
activities:

 Ensuring trainees have immediate and frequent opportunities to practice and apply the
new knowledge and skills.
 Encouraging and reinforcing the trainee’s application of new skills on the job.
 Arranging a meeting after the training has occurred to discuss what the employee has
learned.
 Developing a post action/ learning plan with the employee to ensure transfer occurs in
the workplace.
 Following up with the employee, at minimum 30 – 90 days post training to discuss how
the new behaviors were being applied.

f. Generally speaking, the development plan brought many benefits to the company. It
must be said that it was a challenging plan with many areas changing at the same
time, creating stress and overloading some employees that showed their discomfort.
However, the company dealt with this situation and hired the required personnel in
order to relieve pressure and stress.

Some of the benefits are going to be showed in a long term period such as the
financial benefit of the 10% more of energy solar production although the benefit of
lowering our gas emissions was immediately. The same situation will not happen with
the water treatment plant, which does not bring financial benefits, but it was an
investment that depicts our commitment for a green future and better environment.

The cost final cost of the execution of this development plan was $ 734.000, just a
little bit up from budgeted.

Finally, Apple Laboratories gained better opportunity markets with its lower price
Brand AQUA, which since it was launched it has been a success and the sales are
going forward. The problem of production capacity was solve and now the company
had improve its production efficiency without using extra shifts that let employees
have a better work-life balance.