The innocent drinks is a United Kingdom-based company that produces smoothies and flavored spring water products that are sold to supermarkets, coffee shops, and various outlets such as the Republic of Ireland, Amsterdam, France, Brussels, and Copenhagen. It was formed in the year 1999 by three friends who were referred to as Richard Read, Adma, Balon, and Jon Wright.
The company has a 71% market share of £169 million United Kingdom smoothie market and the company sells over one million smoothies per week. The company’s vision is to be Europe’s favorite juice company in the world that produces healthy products for its citizens so that it can be in a position to compete effectively with its competitors…
The implications of the continued fast growth of innocent drinks for the different functions of the business
The company’s success has been attributed to the production of products that are nutritionally good for human consumption, the company also pays 30% premiums on the pineapples that are produced by the company, it has also spent over four years developing recyclable bottles that are cost-effective to use so that the company doesn’t incur a lot of expenses in developing other bottles for holding the contents of the company’s products.
The company also gives away over 10% of its profits so as to assist the community and this has contributed to the growth of the company since assisting the community is a positive move since it motivates the customers to purchase the company’s products which increase the sales volume of the company’s products. The management’s utilization of its 90% profits in managing its activities effectively has contributed to the success of the company
According to Jane Burkits the head of logistics of the Innocent Drinks company she stated that in order for the company to achieve its goals and objectives it had to identify the key hurdles that would lead to the effective implementation of the demand planning that would facilitate the company’s growth in the future.
She also stated that adopting innovative new approaches would ensure that the management effectively dealt with the volatile customs demand and also by mapping a program of continuous change would lead to the maximization of the company’s return The management of company has also stated that it is committed to run its business in a more sustainable way so as to increase the sales volume of the company.
It is also committed to introducing programs whose aim is to improve the living standards of the residents of the community the programs are aimed at reducing the carbon emissions that have been polluting the environment in which the residents of the community live in and also it has implemented the program of re-cycling waste materials so as to reduce pollution that is caused by the materials that lie idly without been utilized in any useful means..
The marketing actions required for the Innocent Drinks Company
The management of the company’s marketing strategy states that they produce their products without the use of concentrates, preservatives, stabilizers, or weird stuff in their drinks so as to attract its customers since the customers’ desire products that are fresh and pure so that they cannot have a negative effect on the lives of the customers who consumed their products since the preventatives brought about health complications such as obesity, cancer, and other health-related complications..
The management of the company advertises its products through television. The reason for using the television as a mode of advertising its products is that the time in which the products are promoted is chosen according to how the customers have access to the television so as to be in a position to view the products advertisements hence this increases the sales of the company’s products hence its growth.
The management of the company carries out in-store activities so as to avoid running out of stock as it would negatively impact the company’s performance. The smoothie manufacturer of innocent Drinks promote its products through sending emails to their customer it also uses the weekly newsletter to advertise its products to all their customers and also the staff also promote their products so as to increase the sales volume of the company.
They also encourage the customers to visit their offices, they run a regular competition so as to ask the customers to create new recipes and they also organize seminars whose aim is to enable the customers to understand about the usefulness of the products in the market and also this can increase the sales revenue of the company’s products.
The possible problems that are related to the company’s growth
There have been increased reports that the company’s product known as smoothie has been exploding this is as a result of the natural fermentation of its products since the company’s objective has been to produce pure and natural products that do not have preservatives that can keep the products for a longer period of time without getting spoilt.
The exploding of the company’s products has adversely affected the sales volume of the company and has resulted in reduced revenue of the company. The Innocent Drinks Company has faced some tough competition from its competitors but the company’s management improved on the quality of its product and developed its workforce so as to ensure that the sales volume of its products increased.
Issues relating to managing a larger workforce
The company’s workforce consists of over 187 employees who occupy 65% of the domestic market of the company and a good number of the senior management including the United Kingdoms managing Director who oversees that the operations of the company are carried out effectively.
According to the group managing director Mr. Reed he stated that recruiting the right employees was the greatest challenge that the management of the company faced but it stated that it would conduct induction training programs for its employees so as to ensure they acquired the necessary knowledge and skills to run the affairs of the company.
The workforces of a company are motivated by providing them with a good environment in which they can carry out their businesses. The innocent Drinks Company has provided its workforce with a back garden with grass, trees, and picnic tables in between the desks and computers so as to provide the employees with a good environment in which they can relax and feel comfortable while carrying out their duties and responsibilities so as to increase the productivity of the company.
The management of the company has implemented programs whose aim is to utilize color and light to help design a more productive office since in investing in the office’s lighting system can lead to improved concentration levels and subsequently the productivity of the company can also increase. Although according to Cooper he stated that by increasing or decreasing the amount of light in an organization can have a very short effect on the employees who were being studied since they complained that the experiments that were being carried on them were affecting their productivity levels.
Issues relating to financing its growth
The innocent Drinks Company arranged $42 million financings from the Trafalgar. A capital specialized investment fund in the form of convertible debentures to fund the companies operations so that it could be in a position to expand its operations so as to increase the sales volume of the companies and also to enable it to grow effectively.
Implications for the structure and culture of business
The culture of a business is defined as the business sum and value of its values or its beliefs. The leaders of a company such as the authors, owners, or guardians set the company’s value set and those that allow the values to be the driving force in the way the business carries out its activities.
The manufacturer implements the design of their product as a means of reaching the customers and also as a strategy to gain a competitive advantage from the external point of view of company the company’s culture looks more or less informal and relaxed that it cannot have a serious structure and purpose. It has a very relaxed dress code and some unusual assets- a head office that is known as Fruit Towers a customer helpline that is manned by real people and it is called Banana phone and vehicles that are not cost-effective.
The value of the innocent Drinks Company is known and understood by the business leaders and it is managed to ensure the company’s growth so as to sustain a climate that motivates the performance and loyalty of the employees and other stakeholders. The implication is the way the organization is structured is that rigid hierarchies of control give way to management styles that have strong control systems over some functions that are much looser and those that are more team-based approaches.
The implication of producing large scale
The company’s product known as smoother has been the most charismatic brand in the United Kingdom since it’s made from high-quality raw materials, the management of the company has good ethical policies on sourcing, and materials thus it has been in a position to produce the best quality products in the market.
Conclusions
.The management of the company should have reviewed the way it produces its products so as to avoid the explosions from happening in the future as this would have an effect on the sales volume of the company’s products. The management of the company should have marketed its products so as attract the customers who consumed the products and also to maintain the customers and also increase the sales volume of the company’s products.
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