Organizational Strategy Assessment: Innocent Drinks Company Analysis

This presentation provides a comprehensive analysis of Innocent Drinks' organizational strategy. It begins with an introduction to organizational strategy and then delves into the strategic positioning of Innocent Drinks, utilizing PESTLE, SWOT, and VRIO analyses to assess its external and internal environments. The presentation then explores future strategic options for the company, applying the Ansoff Matrix to identify potential market penetration, market development, product development, and diversification strategies. Finally, it examines possible strategic options for linking with other businesses, including strategic partnerships, joint ventures, and marketing collaborations. The conclusion summarizes the key findings and emphasizes the importance of organizational strategy for long-term business growth, supported by a list of relevant references.

Organizational
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Strategic positioning of the business.......................................................................................................3
Future strategic options for business......................................................................................................4
Possible strategic options for linking with other businesses...................................................................5
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................7

INTRODUCTION
An organizational strategy refers to the sum of actions a company takes in order to
achieve its various types of goals. For this presentation, Innocent Drinks Company has been
considered. It is British Company which makes smoothies and juices and has many outlets.
MAIN BODY
Strategic positioning of the business
Strategic positioning of a business refers to the position of company within the industry
(Ajagbe, 2016). 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. Thus they impact Innocent
Drinks as well.
Social factors- The social factors impact a business because they determine the buying
behavior of the consumer (Aten and Thomas, 2016). They can impact Innocent Drinks by
affecting its business model.
Technological factors- The technological factors impact a business because new
technology can reduce the costs. Thus impact is created on Innocent Drinks as well.
Legal factors- The legal factors impact a business because they are determined according
to the rules and regulations of the government. Therefore impact is made on operations of
Innocent Drinks as well because its profitability can be affected.
Environmental factors- The environmental factors affect a business enterprise because
they can either increase the profit level or can decrease it. They impact Innocent Drinks as well
because of the changing attitude of the customer towards the nature and ecology.
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.
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.
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.
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.
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.
Future strategic options for business
For analyzing future strategic options for business Ansoff Matrix can be used (Gylfe and
et.al., 2016). 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. This can help in providing of a wide variety of goods according
to the needs and requirements of the customers of the organization. It can be used by Innocent
Drinks if it expands its products into different lines.
Market Development- In it, firms enter into a new market which has scope for
expansion of their profits (Mazzei and Noble, 2017). They need to conduct a thorough market
research before using this strategy. Innocent Drinks can use this strategy if it has to expand in a
new market so that it can realize its objective of maximization of 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. Innocent Drinks can use this strategy to bring innovation by
creation of new products so that it can increase its customers by broadening the customer base
and can maximize the profits.
Diversification- In it, firms enter new market by bringing in new products or services.
This is the riskiest strategy in the whole matrix (Ocasio and Radoynovska, 2016). It involves a
lot of risk as if it fails then it can result in huge losses to the business enterprise. Innocent Drinks
can use this strategy so that it can result in maximization of its level of profits.
Justification- Innocent Drinks should choose Market Penetration Strategy as it is the
least risky of all the strategies. It also offers a large scope in the future for growth of the

company by application of proper plans made. If utilized properly, this strategy can not only
broaden the customer base of the company but can also allow it to realize its aim of
maximization of level of profits.
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. For example- Innocent Drinks can tie-up with some other businesses to provide some
certain benefit to its customers when they purchase its product. 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 (Soltanizadeh and et.al., 2016). Innocent Drinks can use this option to link itself with
other businesses of its group. Innocent Drinks can get into an agreement with other businesses to
form a joint venture with them which will enable it to achieve its objectives. 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 facilitates side-by-side advertisement with the
competitors. Innocent Drinks can use it to take its marketing activities to a new level and ensure
their effectiveness. 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.
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
Books and Journals:
Ajagbe, M. A., 2016. Which Precedes the other? Organizational Strategy or Organizational
Structure. International Journal of Economics and Business Management. 2(6). pp.50-66.
Aten, K. and Thomas, G. F., 2016. Crowdsourcing strategizing: Communication technology
affordances and the communicative constitution of organizational strategy. International Journal
of Business Communication. 53(2). pp.148-180.
Gylfe, P. and et.al., 2016. Video methods in strategy research: Focusing on embodied
cognition. Strategic Management Journal. 37(1). pp.133-148.
Mazzei, M. J. and Noble, D., 2017. Big data dreams: A framework for corporate
strategy. Business Horizons. 60(3). pp.405-414.
Ocasio, W. and Radoynovska, N., 2016. Strategy and commitments to institutional logics:
Organizational heterogeneity in business models and governance. Strategic Organization. 14(4).
pp.287-309.
Soltanizadeh, S. and et.al., 2016. Business strategy, enterprise risk management and
organizational performance. Management Research Review.