MGT5STR: Boost Juice - Agribusiness Strategic Analysis Report

This report provides a comprehensive strategic analysis of Boost Juice, an Australian agribusiness specializing in healthy juice and smoothie products. The report begins with an executive summary and table of contents, followed by an introduction to Boost Juice, detailing its products and revenue. T...Read More

Running head: BOOST JUICE
BOOST JUICE
Name of the Student
Name of the University
Author note

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Executive summary
It is observed that before starting of any business all the aspects must be kept in mind that are
based on the internal and external factors effecting the business immensely. This report
insights about the macro and internal analysis of an agribusiness named Boost Juice and also
suggesting recommendations strategically for the business.

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Table of Contents
Introduction................................................................................................................................3
Products offered by Boost Juice:............................................................................................3
Revenue estimation:...............................................................................................................4
External environment of agribusinesses.....................................................................................4
Economic factors....................................................................................................................5
Social factors..........................................................................................................................6
Technological factors.............................................................................................................6
Legal and environmental factors............................................................................................6
Analysis of internal organization...............................................................................................7
Capabilities and core competencies.......................................................................................7
Resources and competitive advantages..................................................................................8
Recommendation........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Most of the population of the world is now affected by a serious problem of obesity or
overweight and there are many health problems that are related to these facts and causes. The
mortality curves have increased than usual as a consequence of this that is obesity and the
most affected people of obesity are the children of the society who crave for more junk funds
as they instigate their hunger and appetite (Young et al. 2000).
To fight a battle against this, a woman from Australia brought an idea of having a
restaurant that provides fast-healthy foods to its customers. She had no experience in business
but she had an unlimited passion for providing healthy and tasty living to the customers
coming up. The entrepreneur named Janine Allis started this business named “Boost Juice”
and this has now became one of the most popular juice and smoothie parlor of the country.
The company believes in producing tasty products that are a combination of fresh fruits and
vegetables to their customers. The menu of the company was developed by the nutritionist
and the naturopaths she had of her own and was responsible for providing a selection that had
healthy, and freshly squeezed juices and smoothies (Juice 2020).
This report insights and discusses about the various products that the business is in to
and the analysis of the internal and external environment of the business. The report also
discusses about the strategic directions taken by the business and accordingly recommending
ways.
Products offered by Boost Juice:
There are variety in products offered by Boost Juice; these includes smoothies,
blends, crushers and juices. There are also products based the benefits of health and these
includes juices or smoothies less than two hundred calories, dairy-free products, gluten free

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products, products that contains low fat and products that are sources of proteins and fiber
(Juice 2020).
.
Revenue estimation:
The Boost Juice has grown rapidly and it is now present over 14 countries of the
world and has about 250 stores across the globe. The company has an annual turnover rate of
$125 million and earns a profit of around $6 million (Juice 2020).
External environment of agribusinesses
External environment is also known as the macro environment and it consists of
several larger societal factors that are responsible for effecting the micro environment as a
whole. Most of the factors of the external or macro environment includes the political,
economical, social, technological and environmental factors (Fedulova et al. 2016). These are
the factors that are responsible for the rise of the opportunities and threats of the organization.
The analysis of these factors or the macro environment is done to understand and
evaluate the market in which the organization is placed in or located in. this can be done
using a tool called the PESTLE analysis. PESTLE analysis is a strategic tool used by any
business to know the competitiveness and the competitive advantage over the competitors
present in the market. This tool also helps in the better understanding of the growth or decline
faced by a company or a market (Keats and Wiggins 2019). This also helps in understanding
the potential, position and the direction of the business in the market.
Political factors

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These are the factors that are related to the policies and laws that has an influence in
the operation of the organization. They are also responsible for understanding the
government’s intervenes on the company and the economy.
The political factors that are responsible and has an impact on the business called
Boost Juice includes trade policies, level of taxes and taxation and the political stability of the
domestic and international countries. There is a huge difference in the institutions of citizens
and publics in Australia (Okabe, T. and Kam, T 2017). Corruption is yet another issue faced
during this political analysis. The problem of corruption and its related perception is growing
immensely and the hardships of economy must be revitalized. It is observed that the power
based on politics is taken away from the citizens and this had led to the increase in the
protests group of people who are critical.
Economic factors
These are the factors that are used for considering the performance of a certain
economy. There are several factors that are responsible for the consideration of the economic
environment and these includes rate of exchange, rate of inflation, interest rates and the
disposable income of the consumers. Balance of payment is also ne things that is considered
for the economic environment factors.
The economical factors that are responsible and has an impact on the business called
Boost Juice includes the growth of economy over the four years which has grew about 3.1
percent in the year 2007 (Giannakis and Bruggeman 2015). This growth in the economy was
somehow supported by the demands that were domestic however a positive contribution to
the GDP was maintained by the foreign sector. It was also observed that the annual variation
rate of CPI in 2019 January was approx. 0.5 percent and this had a huge effect on the
businesses in Australia.

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Social factors
These are the factors that gives a representation about the type of general environment
based on the characteristics of demographics, customs, norms and values of the population
where the industry or the company is operating in. Many factors are responsible for
considering this particular factor while doing a business (Mwase et al. 2015).
Distribution of income is major issue that is faced in Australia as there is no equal pay
given for the same work. There are also others factors like the age, rate of growth and the
attitude in career growth are also important factors for this. These are the influences socially
related to the changing of the cultures and demographics (Kirkegaard et al. 2014). People are
now more inclined towards leading a life that is healthy and this is also helping the business
to grow as the consumers are now focused more towards eating healthy and remain fit.
Technological factors
These are the factors that are related to the innovations made in the industry and the
innovations adopted by the business to grow either favorably or unfavorably (Johnson et al.
2014). These factors are involved in the field of automation, research and development and
the amount of technological awareness the business will have.
However, in this case there is no such problem that is relate to the supplies and
machineries that are related particularly for this type of product as these kind of product are
not very specialized and no restrictions are imported by the business that is available in the
country.
Legal and environmental factors
Legal factors are somehow related to the political factors and they possess a same
threat to the business in Australia as discussed above (Peter, Rastislav and Kravcakova 2017).
Environmental factors are the one that are related to the climatic change and change of

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weather that helps and effects the businesses related to agriculture in the country (Terziev and
Radeva 2016). The awareness among the people and the business has a huge impact on the
companies that are operating in the market.
Analysis of internal organization
The internal analysis of the organization can also be done through the strengths,
weaknesses, opportunities and threats faced by the business in the countries. It deals with the
capabilities, core competencies and competitive advantages faced within the organization
(Rose et al. 2016). This can also be done through the SWOT analysis of the company. This
helps in analyzing the current situation that the market is going through by formulating many
was that are helping the business to remain competitive throughout.
Capabilities and core competencies
Boost Juice has many key strengths and one of the major key strengths of this
company is that it helps in encouraging the opportunities for franchising to others will help
the main company to have a master franchisee that has the full authority in the area where the
activity is carried out. This allows the business to expand its branches throughout the market
and a better scope and strong customer base is formed to serve. Besides, a wide range of
communication tools that is integrated is used by the business which helps to have that brand
recognition in the mind of the customers (Paul, Cadle and Yeates 2014). The production
process of the company Boost Juice is highly efficient and the major component used by the
business is fruits. Therefore, a minimal or very less wastage is encountered.
The organization can find ways of expanding the market with the products they have
and can also launch a new one for the acquisition of a new customer base and a new market.
There are different standards of quality that varies in different countries and this should be

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taken care of while manufacturing or producing any juice or smoothie for that particular
country.
Resources and competitive advantages
A variety of products and a very deep assortment is provided by Boost Juice and they
have evolved as a very great brand by making innovations in the service they provide to the
customers. When it comes to competitive advantage, the company has a very good market
position in the country and also in the international markets. The company has a base of
customers that are loyal are always involved in making any improvements I the products they
serve to them. This create a very strong bond and a sense of trust between the organization
and the customers and keep them competitive in the market (Dudin et al. 2015).
The main focus given by the company is on the promotional strategy. It uses many
activities that are essential for creating a vision in the mind of the customers and also grabs
attention making the products aware to the customers the organization has. Though the cost
of investment is high but since the company has a loyal customer base it makes it easy for the
company to make an approach to the customers through different mediums of
communication.
Recommendation
It is seen and observed that the company being a global brand is able to understand
the factors that are responsible and that must be considered at the time of entering the market
that is international.
A minimum profitability is ensured when a business opens franchisee as the quality of
the product that is produced originally is not exactly the same in the franchise stores. Hence,
it must be kept in mind that a commercial risk is also associated with this type of decisions ad

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these must be taken very firmly ad according to the situation and the market it is entering .
(Westgren, Sonka and Litzenberg 1988).
There will be times in the international countries that the weathers may be extreme cold or
extreme hot in such weathers the company must try to product a different variety of products
like some hot chocolates or coffee or tea which will help the company to attract more
customers than usual during winters or summers (Chen, Yueh and Liang 2016).
The company must make a decision to incorporate these and a strategy that is based
on diversification must be developed which would help the customers get a new variety and
types of products.
Conclusion
Therefore, from the above discussion it can be concluded that there are certain companies in
the market which do not participate or they do not even have the capacity to decide whether
to enter the market or not. It is very important to have an analysis over every aspect be it
internal or external as it will help in better understanding and decision making for the
company and also help in making the decisions precise.
The environment in which the organization is present is not stable and the policies are also
very tough to understand. If the company wants to stay in the market with the same or
constant quality and also in the innovation in the product and services then the campaigns
that involve intense advertising and a deep research of market is required.

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References
Chen, C.C., Yueh, H.P. and Liang, C., 2016. Strategic management of agribusiness:
Determinants and trends. Journal of Entrepreneurship, Management and Innovation, 12(4),
pp.69-90.
Dudin, M.N., Lyasnikov, N.V.E., Leont’eva, L.S., Reshetov, K.J.E. and Sidorenko, V.N.,
2015. Business model canvas as a basis for the competitive advantage of enterprise structures
in the industrial agriculture. Biosciences Biotechnology Research Asia, 12(1), pp.887-894.
Fedulova, E., Medvedev, A., Kosinskiy, P., Kononova, S. and Pobedash, P., 2016. Modeling
of the agribusiness enterprise activity on the basis of the balanced scorecard. Foods and Raw
materials, 4(1).
Giannakis, E. and Bruggeman, A., 2015. The highly variable economic performance of
European agriculture. Land Use Policy, 45, pp.26-35.
Johnson, J.A., Runge, C.F., Senauer, B., Foley, J. and Polasky, S., 2014. Global agriculture
and carbon trade-offs. Proceedings of the National Academy of Sciences, 111(34), pp.12342-
12347.
Juice, B., 2020. Home - Boost Juice - Boost Juice. [online] Boostjuice.com.au. Available at:
<https://www.boostjuice.com.au/> [Accessed 26 March 2020].
Keats, S. and Wiggins, S., 2019. Future diets: implications for agriculture and food prices.
Kirkegaard, J.A., Conyers, M.K., Hunt, J.R., Kirkby, C.A., Watt, M. and Rebetzke, G.J.,
2014. Sense and nonsense in conservation agriculture: principles, pragmatism and
productivity in Australian mixed farming systems. Agriculture, Ecosystems &
Environment, 187, pp.133-145.

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Mwase, W., Sefasi, A., Njoloma, J., Nyoka, B.I., Manduwa, D. and Nyaika, J., 2015. Factors
affecting adoption of agroforestry and evergreen agriculture in Southern Africa. Environment
and Natural Resources Research, 5(2), p.148.
Okabe, T. and Kam, T., 2017. Regional economic growth disparities: a political economy
perspective. European Journal of Political Economy, 46, pp.26-39.
Paul, D., Cadle, J. and Yeates, D. eds., 2014. Business analysis. BCS, The Chartered Institute
for IT.
Peter, A., Rastislav, K. and Kravcakova, V.I., 2017. Legal form of agricultural entities as a
factor in ensuring the sustainability of the economic performance of agriculture. Agricultural
Economics, 63(2), pp.80-92.
Rose, D.C., Sutherland, W.J., Parker, C., Lobley, M., Winter, M., Morris, C., Twining, S.,
Ffoulkes, C., Amano, T. and Dicks, L.V., 2016. Decision support tools for agriculture:
Towards effective design and delivery. Agricultural systems, 149, pp.165-174.
Terziev, D. and Radeva, D., 2016. Studying the new agriculture. In 2nd International
Conference on Development and Economics (I. CO. D. ECON.), Thessaloniki, Greece,
Conference proceedings: https://icodecon. com/images/docs/proceedings_2017_3_18.
pdf (pp. 175-179).
Westgren, R.E., Sonka, S.T. and Litzenberg, K.K., 1988. Strategic issue identification among
agribusiness firms. Agribusiness, 4(1), pp.25-37.
Young, T.K., Dean, H.J., Flett, B. and Wood-Steiman, P., 2000. Childhood obesity in a
population at high risk for type 2 diabetes. The Journal of pediatrics, 136(3), pp.365-369.