SWOT Analysis of Innocent Drinks

This report is a brief description about management and operations of 'Innocent Drinks'. It explains how management and operation skills are used in managing departments and teams for effective working. The concept of management and operation are explained in reference to Innocent Drinks. Strategies, management, structure, and modern management approaches are analyzed to identify key factors while setting up and exploring the organization further.

Management
&
Organisation

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Innocent Drinks...........................................................................................................................2
TASK 2............................................................................................................................................3
Structure of organisation.............................................................................................................3
TASK 3............................................................................................................................................4
Modern Slavery approach...........................................................................................................4
TASK 4............................................................................................................................................5
Strategies and approaches ..........................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Management is an art which helps in negotiating with the things and operations in
systematic manner (Taylor, 2012). An organisation is a set of various type of departments and
teams. Managing these departments and teams are the major task which needs coordination,
communication and leadership skills. This report tells about the management and operations of
Innocent Drinks, London, United Kingdom. Its is defined in this report that how did this
organisation come in existence in beverage industry and set up its business in UK.
TASK 1
Innocent Drinks
This organisation was established by three friends named Adam Balon, Richard Reed
and Jon Wright (Lee and Liu, 2011). These all graduated from Cambridge University. They
utilised there six months in making smoothies and soft drinks and they presented their concept in
a music festival in London. They organised a survey and asked people whether they should quit
their job to start their own smoothies and beverage business.
This was a new concept and set up a new image of organisation there was huge
investment required. They have to face and make their efforts in generating finance to setup the
organisation. Finally An American businessman named Maurice Pinto show his interest in their
idea and invested £250,000. it took 15 months to implement the concept in market.
Smoothies are the main product of this organisation. Fruits and vegetable juices, coconut
water are also its best selling products. It keep innovating in varieties of smoothies. It introduced
new flavour of juice in 2014 as combination of fruits, vegetables, crushed flax seeds and
botanicals. Its drinks contains protein, vitamins in accurate manner.
In Connected with McDonal's in 2007 with five type of Innocent smoothies. But
McDonald had to breach their contract with this organisation due to negative response and
feedback of customers. After this organisation replaced it smoothies with Chiquita Smoothie in
Netherlands. It had to face market crises in 2008 as loss of £8.6 million.
In April 2009, it sold its 10-205 shares to Coca Cola company for £30 million and all the three
founders continued their operation with existing organisation. It got benefit of global economy
after being a partner of Coca Cola company. In 2016 organisation introduced its new products
and smoothies as coconut water and vegetable smoothies. It made new records of selling and
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increased sale amount. There was record revenue of £247.4 million generated in 2016 by
organisation which was 13% more than its previous sales records.
TASK 2
Structure of organisation
Organisational structure shows the base and model around which it operates its functions.
There are some boundaries and limitation around which its people works (Qian, Lin and Chen,
2012). Innocent Drinks is one of the beverage organisation supplying wide rage of smoothies and
soft drinks in UK. Its head quarter is situated in London, which is full of its staff members,
managers, employees and planners. It has a fruit towers, shops and juice stations in various
places in London.
This organisation is eligible in making good brand image and customer interest in UK. Its
products and smoothies are taken as healthy and effective options. Its products contains enough
quality of vitamins, calories, proteins which are beneficial for good health. It has connections its
organic fruits and vegetables farms. It used quality fruits and ingredients in making smoothies
and drinks.
Innovation and experiments are the need of changing environment and customers get
attracts by innovative ideas and new concepts. Innocent Drinks has an experts and
knowledgeable members who works as a team. This team seeking out different ways of making
juices and keep experiments to enrich the taste of drinks. Innovations and experiments are also
one of the main reason which attracts new customers. This build and effective and faithful base
of strong customer relation.
Organisation has its own website and also connected with social media. It gets feedbacks,
advises and new ideas of customers through social media. Its also helps in advertising and
promoting the product in market.
Its organisation structure contains managers, advisors, partners and managing directors.
It has its staff management, accounts payable and receivable department, legal department,
service centre. Its is known for best customer relations and supplier relations too. Its business
structure is made in building sustainable position and building faith in customers and clients. It is
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very concerned in improving the image and follow the legislations of UK government. All the
beverage rule and measurement are preceded by its production and managing department.
TASK 3
Modern Slavery approach
It is very important to select and appropriate and adequate approach of management to
operate the functions and operations in organized manner (Sallis, 2014). Innocent Drinks is a
brand name in UK and famous for its variants and multiple products. It deals in smoothies and
soft drinks. Its success shows the picture and better formulation of work as a group.
Its modern slavery approach fasten the people of organisation in one garland. It works in
direction of keeping customer's interest first. This approach is working the direction of building
supply chain with its sustainable image. There are multiple teams and individual works in
making customer interest and improving rights of people. This approach not only works for its
people but also works for maintaining healthy and friendly environment.
Its management department make smooth and flexible strategies and policies. These
policies helps making contracts and agreements with suppliers. These agreements are called
MSA(Master Services Agreements). There is systematic and accurate payment structure is
designed as per approachability of suppliers. There is 60 days payment policy is made top get
payment from suppliers.
One of its management team keep monitoring the factors which affect the interest of
customers. It has its own information system and website through which it operates its clients
feedbacks and issues. It is also active on Facebook, twitter, and other social media. Its software
provide required information regarding ingredients, new strains of fruits and vegetables.
Modern slavery approach of Innocent Drinks not only work for identifying the risk of
climate change, environmental laws and regulations, child labour, gender inequality, human
rights and civil laws. It has its own tactics and set limitations in building new supplying chain.
Forecasting new change, techniques and merits are also one of the important factor of building
customer interest.
This approach is focused upon exploring the scope of organisation across the territory. Its
motive and aims are centralised in exploring its supplier chain all over destinations in UK. It has
committed to invest £1 million by 2020 to grow its supply chain in global market.
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TASK 4
Strategies and approaches
To set up and exploring the scope of organisation it is required at initial stage to analyse
internal and external factors of environment (Wagner and Svensson, 2010.). Innocent Drinks was
funded in 1999 and from that it faces lots of changes, ups and down. Today it is operating its
functions successfully in UK. It has multiple chain, stores and shops in London. There is some
approaches are defined in as
Ans-off matrix
(Source : Ansoff Matrix, 2017)
This approach is divided in four dimensions;
Market penetration – Organisations make their plans and policies to grow its existing products
and services. This strategies helps in increasing sale of organisation's star products. This
strategies would also helps Innocent Drinks in accelerate sale of its smoothies and mixed fruit
juice. Its sugar free orange smoothies and drink tubes for kids are its prime products.
Market development – This strategy indicates towards making new connections as buyers,
suppliers, customers and foreign investment (Ashill and Jobber, 2014.).
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Product development – New innovations and experiments in products as change in design,
packaging, new ingredients etc. Innocent Drinks bring new concepts and products as adding new
flavours, mixed juices, sugar free smoothies etc. which improve customer interest in having and
enjoy new products.
Diversification – as per this strategy an organisation invites different business types and
investors to buy its market share and divide organisational type in multiple parts. Innocent drinks
sold its 10%-20% market share to Coca Cola company in 2009 and diverted its market share with
global economy.
SWOT analysis of Innocent Drinks
Strength :
 Impressive and innovative brand image
 Multiple options of products
 Large market share in UK
 Partnerships with Brand name as Coca Cola.
Weakness :
 Competitors with Tropicana products, PepsiCo
 Limited resources for introducing at global level
Opportunity :
 To become adequate in respect of health.
 Large scope of getting explore the business type at international level (Ngim, Amah and
Abang, 2012. ).
Threats :
 Risk of getting change in climate
 Uncertain market conditions
 Political changes as Brexit
CONCLUSION
This report is brief description about management and operations of 'Innocent Drinks”.
How management and operation skills are used in managing departments and teams for effective
working. Concept of management and operation are explained in reference of Innocent Drinks.
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What strategies, management, structure are used in this organisation elaborated in summarised
way. There is a modern management and strategic approach is defined to analyse the key factors
while set up and explore organisation further.
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REFERENCES
Books and Journal
Lee, T. H. and Liu, R. T., 2011. Strategy formulation for the recreational areas of Central
Taiwan: An application of SWOT (strengths, weaknesses, opportunities, threats)
analysis. Journal of Hospitality Management and Tourism. 2(3). pp.38-47.
Taylor, E. C., 2012. Competitive improvement planning: using ansoff's matrix with abell's model
to inform the strategic management process. In Allied Academies International
Conference. Academy of Strategic Management. Proceedings (Vol. 11, No. 1, p. 21).
Jordan Whitney Enterprises, Inc.
Sallis, E., 2014. Total quality management in education. Routledge.
Qian, J., Lin, X. and Chen, G. Z. X., 2012. Authentic leadership and feedback-seeking
behaviour: An examination of the cultural context of mediating processes in China.
Journal of Management & Organization. 18(3). pp.286-299.
Wagner, B. and Svensson, G., 2010. Sustainable supply chain practices: research propositions for
the future. International Journal of Logistics Economics and Globalisation. 2(2).
pp.176-186.
Ashill, N. J. and Jobber, D., 2014. The effects of the external environment on marketing
decision-maker uncertainty. Journal of Marketing Management. 30(3-4). pp.268-294.
Ngim, N.E., Amah, P. and Abang, I., 2012. Tropical Diabetic hand syndrome: report of 2 cases.
Pan African Medical Journal. 12(1).
Online
Ansoff matrix, 2017. [online]. Available through :
<https://en.wikipedia.org/wiki/Ansoff_Matrix#/media/File:Ansoff_Matrix.JPG>
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