Organizational Strategy Assessment: Innocent Drinks Presentation

This presentation provides a strategic analysis of Innocent Drinks, covering its organizational strategy. It begins with an overview of the company's strategic positioning, utilizing PESTLE, VRIO, and SWOT analyses to assess external and internal factors. The presentation then explores potential future strategic options for the business, applying the Ansoff Matrix to identify opportunities for market penetration, development, product development, and diversification. Furthermore, it evaluates possible strategic options for linking with other businesses, specifically through strategic partnerships, joint ventures, and marketing collaborations. The conclusion emphasizes the importance of organizational strategy for long-term growth, highlighting the value of both internal and external strategic considerations. The presentation includes references to support the analysis and recommendations.

Organizational Strategy

Table of contents
 Introduction
 Strategic positioning of the business
 Future strategic options for the business
 Possible strategic options for linking with other businesses
 References
 Conclusion

Strategic positioning of the business
Strategic positioning of a business refers to the position of company within the
industry
 It reflects the choices company will take so that it creates a value for itself. Innocent
Drinks has to take several decisions which will impact the strategic positioning of
the business.
 The external strategic positioning of the business can be identified using PESTLE
analysis which has been explained in the context of Innocent Drinks as follows-
 Political factors- The political factors impact the strategic positioning of a business.
They impact Innocent Drinks as its level of profits can be impacted by them.
 Economic factors- The economic factors impact the strategic positioning of a
business as the economic conditions have an impact on profitability of a business.
 Social factors- The social factors impact a business because they determine the
buying behavior of the consumer.

Continued…
 Technological factors- The technological factors impact a business because new
technology can reduce the costs.
 Legal factors- The legal factors impact a business because they are determined
according to the rules and regulations of the government.
 Environmental factors- The environmental factors affect a business enterprise
because they can either increase the profit level or can decrease it.

Continued…
 VRIO analysis-
 It is an analytical technique which can be used in order to identify those resources
which are valuable, rare, and inimitable and organized for a business. The analysis
in the context of Innocent Drinks is as follows-
 Valuable- Goodwill is valuable because it adds value for the business. Customer
support is valuable because it enhances good reviews from the customers.
Innovation is valuable because it leads to increase in profits. Supply chain
management is valuable because it facilitates effective management of the suppliers.
 Rare- Goodwill is rare for the firm because it takes years to build goodwill in the
market. Customer support is not rare because most firms offer it. Innovation is rare
because not every firm has resources for it. Supply chain management is not rare
because most of the firms can manage suppliers efficiently.

Continued…
 Inimitable- Goodwill is an inimitable resource because it cannot be copied.
Customer support is not inimitable because it can be copied. Innovation is
inimitable because it is difficult to copy it. Supply chain management is not
inimitable because it can be copied.
 Organized- Goodwill is an organized resource because it has taken years to build it.
Customer support is not organized because there are some problems in it. Innovation
is organized because it is carried on effectively. Supply chain management is not
organized because sometimes it becomes difficult to manage suppliers.

Porter’s five forces
 Competitive rivalry- For Innocent Drinks, this force has a high power because it is
facing high-level of competition in the market.
 Supplier power- For Innocent Drinks, this force has a low power because the
suppliers are not in a position to influence the price of inputs.
 Buyer power- For Innocent Drinks, this force has a high power because the buyers
need to be given supreme preference in the market.

Continued…
 Threat of substitution- For Innocent Drinks, this force has a low power because the
buyers do not prefer substitute products over original ones in its industry.
 Threat of new entry- For Innocent Drinks, this force has a low power because it
takes a lot of time for a new player to establish itself in this industry.

SWOT analysis
The internal strategic positioning of the company can be determined using SWOT
analysis which has been explained in the context of Innocent Drinks as follows-
 Strengths-
 Innocent Drinks has a substantial customer base which acts as its major strength.
This helps it in capturing a large market share.
 Innocent Drinks has been able to maintain a decent profitability level which is
steadily growing over the years.

 Weaknesses-
 Innocent Drinks has been very slow in adopting the new technology which has led
to it being left behind by its competitors.
 The marketing and promotion strategies of Innocent Drinks leave a lot to be desired
and have to be updated to match the requirements of a dynamic environment.

Continued…
 Opportunities-
 Innocent Drinks can expand to other parts of the country which offer it an
opportunity of raising its profit share.
 Innocent Drinks can facilitate innovation in its products offered to the customers to
broaden its customer base.
 Threats-
 The new tax policy framed by the government acts as a threat to Innocent Drinks as
it can reduce its profits.
 Increasing level of competition is forcing Innocent Drinks to reduce its price which
in turn is impacting its profitability level.

Future strategic options for business
 For analyzing future strategic options for business Ansoff Matrix can be used. Its
application in the context of Innocent Drinks is as follows-
 Strategies which can be used by business-
 Market Penetration- In it, firms bring in more products and services to be offered
to its existing customers in the market.
 Market Development- In it, firms enter into a new market which has scope for
expansion of their profits.
 Product and Development- In it, organizations can develop new products using
creativity and innovation to get ahead of their competitors in the market and ensure
long-term sustainable growth in the future.
 Diversification- In it, firms enter new market by bringing in new products or
services. This is the riskiest strategy in the whole matrix

Possible strategic options for linking with
other businesses
Innocent Drinks operates in the beverage industry. The industry has a good potential of growth
in the future. There are many players present in this industry. The possible strategic options
which the company can use for linking with other businesses are as follows-
Strategic partnerships- Strategic partnerships refer to linking with other businesses to provide
some certain benefit to the customers of the business. It can be used by Innocent Drinks as it also
acts as an effective promotion strategy to increase the chances of getting more customers. It can
tie-up with Lidl and Premier Inn which will help in combining resources in order to facilitate
better marketing and increasing revenues and sales.
Joint ventures- Joint Venture is a business arrangement wherein two or more parties can come
together to pool their resources for the purpose of accomplishment of a certain task or objective.
It can announce a joint venture with Lidl and Premier Inn which will enhance its position in the
market as the resources will be combined and the combined capabilities of companies will
achieve much more.
Marketing collaborations- Marketing collaboration is a strategy used in business in order to
work with unison with other similar companies for promotion of brand, minimization of cost and
increasing the level of sales. It can collaborate with Lidl and Premier Inn which will lead to
combining of tactics for marketing ensuring the success of both the firms in the market.

Continued…
 Justification- Innocent Drinks should use Marketing Collaboration as its strategic
option for the future. It is so because it will allow pooling of resources for marketing
with other firms which will not only give it more exposure but will also facilitate
better promotion of its products.

CONCLUSION
 From the above presentation, it can be concluded that organization strategy is
required for ensuring growth of firm in the long-run. Its strategic positioning can be
identified using internal and external factors. There are future strategic options
which are available for a business. Also there are options for it to link with other
businesses.

REFERENCES
 Teece, D., Peteraf, M. and Leih, S., 2016. Dynamic capabilities and organizational
agility: Risk, uncertainty, and strategy in the innovation economy. California
Management Review. 58(4). pp.13-35.
 Yuliansyah, Y., Gurd, B. and Mohamed, N., 2017. The significant of business
strategy in improving organizational performance. Humanomics.

Thank You