Strategic Consultancy Report for Luscious Juice Bar

This strategic consultancy report focuses on Luscious Juice Bar, a family-run establishment in the UK. It covers the background of the organization, range of strategies, situational analysis, development of objectives, and implementation strategy.

AS2: Strategic
Consultancy Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Background of organisation.........................................................................................................1
Range of strategies.......................................................................................................................2
Situational analysis and developing objectives...........................................................................3
Development of an Implementation strategy...............................................................................6
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Organisational managers prepares strategic consulting report with the objective of assisting
administrators or top level management in high level decision through using deep industrial
information or knowledge for delivering best outcomes (O'brien, 2019). This is a kind of
management consulting report that is devised in all types of businesses. In the report, information
about all angles of enterprise is recorded and suitable actions are advised so to accomplish set
targets and achieve objectives. In the report, Luscious Juice Bar is considered which an
independent family run establishment that offers wide types of juices from its headquarters at
Bedfordshire, UK. Along with various juices, it also provides seasonal fruits as per demands of
targeted population. It also has salad bar where it offers fresh ingredients for making salad box
for customers. The report covers background of organisation, range of strategies, analysis of
strategic situations, identification and development of objectives. It also includes implementation
strategy and recommendation to the entity.
MAIN BODY
Background of organisation
Luscious Juice Bar is the entity that was opened in the year 2007 by a family in
Bedfordshire, UK. The company is first of its types around the city offering fresh juices made
from various fruits and vegetables, some great shakes that are made from almond, soya and cow
milk and amazing fruit smoothies. The entrepreneurs of the business believe in serving high
quality wholesome drinks which are made without nasties and are produced in ethical manner. It
prepares products through using organic ingredients by considering heath consciousness of its
clients and potential audiences (Luscious Juice Bar, 2020). It also makes healthy breakfast and
lunch facilities on the first come basis. It also has salad bar wherein different salad box are
prepared in different size and quantity. Furthermore, the company has some exciting treats
within its shelves including variety of cakes, rice milk chocolate, Tyrrells Vegetable crisps,
coconut water and the list goes on. it makes available pic n mix at distinct sizes that includes
dried fruits, nuts and various naughty treats covered on yogurts and chocolates for making nibble
pot. Luscious Juice Bar also offers frozen yogurts, guarana and aloe vera, sorbets and ice creams.
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Range of strategies
Strategy is mentioned as the general plan through which an organisation aims to achieve
overall objectives within uncertain situations (Dodgson, 2018). There are various types of
strategies that are adopted within a business concern in order to accomplish working smoothly
and pursuing towards the attaining end targets. In this context, major one is entrepreneurial and
intrapreneurial strategies which are used by organisational entrepreneurs and Intrapreneur for
achieve desired state. Some of the entrepreneurial and intrapreneurial strategies adopted at
Luscious Juice Bar are as follows:
Porters Five force strategy:
It is one of intrapreneurial strategy which is used by Intrapreneur of business for analysing
competition in the beverage industry (Ahmad and Ahmad, 2017). In relevance with Luscious
Juice Bar, the Intrapreneur are the managers and employees that have responsibility for devising
plans to attain entrepreneurial objectives. The following forces of the model are as evaluated in
association to Luscious Juice Bar:
Supplier Power: The force explains how easy the things are for suppliers for driving prices.
It is analysed that Luscious Juice Bar obtains raw materials and other ingredients to make variety
of juices, smoothies, shakes and so forth from various suppliers at relatively low prices. For the
company it is easy to switch within suppliers when analyses that supplier are not effective which
gives low bargaining powers to suppliers.
Buyer power: The force assesses about easiness for buyers to drive prices for products. This
is driven by various factors including number of customers in industry, switching costs to buyer,
importance of every individual buyer to business and so on. In case with Luscious Juice Bar, it
has large buyers for its offerings so it has to modify its services and products to retain buyers and
this gives high bargaining powers to buyers as they plays necessary role in enterprise.
Competitive rivalry: It defines about number of companies operating in same industry (Khillari,
2020). In Beverage industry of UK, there are wide number of juice companies such as Boost
Juice, The Juice Executive, Zumo Juice Bar, Gin and Juice, Succo Juicery and so forth. All these
are major competitor of Luscious Juice Bar which states that there is high competitive rivalry for
it.
Threat of substitution: It explains that existence of substitute products increases customers
likelihood for switching to alternative for increasing prices. In beverage industry, there are huge
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substitute available for fresh juices such as tetra pak juice which gives similar benefits to
customers that results in high substitution threat for Luscious Juice Bar.
New entry threat: Beverage industry is profitable sectors which attract new entrants that
erodes profitability for the existing companies. To enter in the industry, there are limited barriers,
less requirements of capital and few government policies that creates huge entrant threat for
Luscious Juice Bar.
BCG matrix strategy:
One of entrepreneurial strategy that organisational entrepreneurs use for representing
their offerings in different quadrants which assist them in decision making about selling, keeping
or investing more in particular commodity. The entrepreneurs of Luscious Juice Bar use the
strategy for focusing on making necessary decision for variants of milk shakes, juices and other
beverage items. The quadrants of the strategy are as described:
Dogs: Dogs represents those offerings of company that have weak market share and
relatively low growth in market (Torquati and Et. Al., 2018). The products of Luscious Juice Bar
which nether generate huge cash nor needs more cash amount can be added in this type of
quadrant.
Cash Cows: This quadrant represents about products which has large market share but slow
growth rate. In context to Luscious Juice Bar, entrepreneurs can add the juices or smoothies
which need little investment but results in generating huge cash for business.
Stars: It represents the commodities of company that have large market share within the
competitive industry. Entrepreneurs of Luscious Juice Bar can add its offerings in star quadrant
which generates cash and requires more investment for maintaining lead.
Question Marks: It represents merchandises of entity which posses relative low market
share and is established in high growth sector. The juices, smoothies, cakes, or other beverage
products offered by Luscious Juice Bar can added by the entrepreneur in question mark quadrant
that requires high cash amounts for the purpose of gaining or maintaining shares of market.
Situational analysis and developing objectives
It involves collection of distinct types of methods which are used at businesses for analysing
internal with eternal situations for understanding about entrepreneurial capabilities, positions,
customers and surrounded business environment (Essabbar, Zolghadri and Zrikem, 2020). For
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analysing situations, capability and position of entrepreneur of Luscious Juice Bar, following are
the models:
SWOT Analysis
Organisational managers use SWOT Analysis for identifying information about
entrepreneurial capabilities together with position. It is done through identifying strengths and
opportunities available to company and weakness along with threats that hampers business
existence. SWOT Analysis of Luscious Juice Bar is underneath:
Strengths Weaknesses
 The business offers healthy and organic
beverages in the market (Ahmad and
Ahmad, 2017).
 Luscious Juice Bar has innovative
concepts of products as well as
offerings for services.
 Higher customer loyalty is its main
strength as it is quite popular within its
customer base.
 Significant sales drop for beverage and
drink products in winter season is
weakness for the entity.
 The brand is to establish in overseas
market.
 Luscious Juice Bar emphasis heavily on
promotional activities that results in
huge marketing expenses.
Opportunities Threats
 Luscious Juice Bar can advertise or
promote the brand through social media
platforms which requires limits
expenses.
 By targeting emerging market and
expanding the business is another
opportunity with the juice enterprise.
 Fluctuating policies of political leaders
and international currencies affects
adversely on operations of Luscious
Juice Bar.
 Intense rivalry from domestic and
global juice company reduces market
share of the business (Crump, 2017).
PESTLE analysis
PESTLE Analysis is one of situational analysis model through which managers of
enterprise assesses its position and main external factors that impact on its practices for
becoming more competitive and sustained in market (Çitilci and Akbalık, 2020). It includes
various factors that are as analysed in context to Luscious Juice Bar:
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Political: Ruling as well as guidelines from political system of a country is important
political factors that influence workings of an enterprise. In UK, one of another political factor in
no deal Brexit that resulted in direct addition to indirect impacts on Luscious Juice Bar. For
example, trade agreements, potential opportunities and trade tariffs are some decisions that are
taken by government which caused huge negative influences of the juice company.
Economical: Consumer spending potentials, growth of economy, unemployment rates
and significant factors of particular industry are economic factors that impacts on Luscious Juice
Bar in UK. It is perceived that economic situation of the nation influences sales demand of the
smoothes, juices and other beverage drinks because of premium price together with availability
of large number of cheaper substitutes.
Social: The social elements that influences practices of Luscious Juice Bar comprises of
changing consumer taste that assist the enterprise to become successful through its ethos related
to usage of natural ingredients addition to premium prices. Moreover, the juice business has
potentials to address growing choices and needs among targeted audiences related to heath
concerns as well as consumer willingness for making payments for premium prices of products
(Priyadarshini and Priyadarshini, 2018).
Technological: New methods related to production, intellectual property and innovation
are technological factors which influences organisational performances in UK. For instance,
Luscious Juice Bar has developed and implemented a technique that helps customers to have
information about amount of water used in juices or any other beverages. This attracts large
customers towards it which results in positive impacts in meeting customer needs and gaining
recognition in competitive industry.
Legal: It is necessary for Luscious Juice Bar to comply or adhere legal frameworks that
are implements by UK’s government including taxation, food and drink manufacturing law,
health and safety act. In UK, substantial changes in legislation due to Brexit have impacted
negatively on amendments and retention of laws concerned with employment rights, safety and
so on. Moreover, uncertainty is developed by proposed soft drinks levy that impacts negatively
on Luscious Juice Bar.
Environmental: Certain ecological elements that affect industries along with abilities for
functioning in smooth ways are environmental factors. For example, ecological issues, dealing
with hazardous substance and power consumption are common environmental factors which
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impacts entire food and beverage industry of UK. In relevance to Luscious Juice Bar, through
using recyclable cups and implementing operations for reducing carbon footprints helps in
addressing complexities of climatic changes which impacts on decision making of managers of
the firm regarding addressing influences of climatic changes and continuing improvements
within manufacturing aspects. This impacts positively on offset potential costs through reducing
wastage addition to usage of water (Triguero, Fernández and Sáez-Martinez, 2018).
Developing objectives
As per the above strategic situation analysis, certain objectives in context to Luscious Juice
Bar are as developed:
 To expand in emerging market for increasing sales demand upto 15% by end of 2021.
 To introduce a new beverage commodity for increasing customer base till 34% by 2022.
 To maximise margins of profit and productivity by 29% till mid of 2022.
Development of an Implementation strategy
As per the above developed objectives, managers of Luscious Juice Bar can develop an
implementation strategy that is consistent with the identified achievable. In this context, Ansoff
Matrix is the suitable one as it will assist the entrepreneurs through distinct strategies that will be
beneficial for it (Dawes, 2018). Following are the concepts of the implementation strategy:
Market penetration: The major consideration of market penetration is towards enhancing
sales for current offerings within existing targeted market. Through implementing market
penetration strategy, managers of Luscious Juice Bar will be able to achieve objective of
maximising profit and productivity by attracting customers through making necessary changes in
prices.
Product development: In this, organisational people make their emphasis towards
launching innovative product for the current market. In case with Luscious Juice Bar,
implementation of product development strategy will benefit the company in achieving objective
that is introducing new beverage item for increasing customer base through making huge
investment in research and development for developing a product that will cater current market.
Market development: Main objective of using the strategy is to enter into new market
with current offerings. Within Luscious Juice Bar, market development strategy is suitable for
implementation in order to attain objective that is expansion in emerging market for making huge
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sales demand. The entity can expand its legs either in new domestic market or into foreign
market.
Diversification: Major consideration of the strategy is to help an organisation in entering
in completing new market with new product (Bai and Zhang, 2018). Marketers of Luscious Juice
Bar can implement diversification strategy in order to achieve objective of expansion in new
market with a new beverage commodity for enhancing customer base and sales demand.
Recommendation
Food as well as beverage sector is growing industry that comprises large business sizes that
performs various kinds of operations with the objective of building and maintaining sustainable
position. Luscious Juice Bar is recommended to make certain changes in its product taste so that
it can attract large market segment and generate huge profits. This will help the enterprise in
building strong position in market as a company that caters needs of customers for healthy, detox
and organic juices, smoothies and many more. Moreover, the company is also recommended to
adopt suitable marketing concepts and practices so that it can develop awareness among
customers for its offerings and influence them to have the taste through making purchase.
CONCLUSION
From the information presented in the report, it is concluded that strategy is comprehensive
action plan that is devised for attaining specific organisational objectives within desired time
frame. Porters five force and BCG matrix are entrepreneurial and intrapreneurial strategies that
are widely used by entrepreneur and intrapreneurs of business. When these both are used in
decent and effective manner then company tends to enhance as well as monitor its growth
together with market share. Situational analysis is important as it aid sin structuring out plan
together with determines effectiveness. For analysing organisation position in the dynamic
business environment, PESTLE Analysis is opted by intrapreneurs of entity. at same time,
SWOT Analysis defines about capability and position of the enterprise in the business
environment. Effective implementation strategy in context to identified objective of Ansoff
Matrix strategy that includes diverse number of tactics which are helpful for the organisation.
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REFERENCES
Books and Journals
Ahmad, S. Z. and Ahmad, N. B., 2017. Just Fresh: fresh juices from the desert!. Emerald
Emerging Markets Case Studies.
Bai, R. and Zhang, M., 2018. An art district system dynamics model of diversified operation
based on game theory. Journal of Discrete Mathematical Sciences and Cryptography.
21 (4). pp.1019-1030.
Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for Environmental
Scanning Process. In Handbook of Research on Decision-Making Techniques in
Financial Marketing (pp. 336-357). IGI Global.
Crump, J. ed., 2017. Smoke on Water: Countering global threats from peatland loss and
degradation. UNEP, GRIDA, GPI.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation (Vol. 11). Routledge.
Essabbar, D., Zolghadri, M. and Zrikem, M., 2020. A framework to model power imbalance in
supply chains: Situational analysis. Asia Pacific Management Review.
Khillari, S., 2020. Beverage Can Market Analysis| Recent Industry Trends Report, 2026.
O'brien, J., 2019. Category management in purchasing: a strategic approach to maximize
business profitability. Kogan Page Publishers.
Priyadarshini, A. and Priyadarshini, A., 2018. Market dimensions of the fruit juice industry. In
Fruit Juices (pp. 15-32). Academic Press.
Torquati, B. and Et. Al., 2018. How can consumer science help firms transform their dog (BCG
Matrix) products into profitable products?. In Case Studies in the Traditional Food
Sector (pp. 255-279). Woodhead Publishing.
Triguero, A., Fernández, S. and Sáez-Martinez, F. J., 2018. Inbound open innovative strategies
and eco-innovation in the Spanish food and beverage industry. Sustainable Production
and consumption. 15. pp.49-64.
Online:
Luscious Juice Bar. 2020. [Online]. Available through:
<https://lusciousjuicebedford.wordpress.com/>
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