Case Study: Drinks Company (Term Paper Sample)

Innocent Drinks Company.
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Introduction
Innovation is a strategy that most businesses employ to accelerate their performance. The strategy may call for forming partnerships with other organizations, to strengthen performance. Another reason for innovation is to ensure a sense of continuity of the organization in the business world. It also promotes ownership among customers and longevity of suppliers. With the changing times of technology and tastes for products, a company should strive to stay ahead of its competitors. One of the benefits of forming partnerships with a gigantic company is the attraction of consumers from a larger field (Brown 2002, p.136). This extends consumer loyalty for the known company to the upcoming one. This case study is about the Innocent Drinks Company that is presently owned by the Coca Cola Company.
Innocent Drinks Company
Innocent started its origin in 1999 through three graduates from Cambridge University. Adam Balon, Richard Green and Jon Wright made and sold fruit smoothies in London. The commendable response from customers led them to invest in Innocent Drinks and later form an agreement in 2009 with the Coca-Cola Company (Brown 2002, p.135, p.144). This case study will look at the company’s ownership, growth and structure as well as its partnership with the Coca-Cola Company. The study will also report on its successes since its initiation and its current performance under the control of the international company (Temporal 2011, p.67). The company relishes in its uniqueness of producing products that consist of 100% fruit. However, some of its drinks contain ginger and carrots (Edes 2006). The products packaged currently are smoothies, veg pots, and juices. The veg pots are three servings of whole rains, sauce and vegetables. They are packed in little recyclable bottles with a little smiley on each of them (Edes 2006).
Organizational Structure, Ownership, and Growth
The organizational structure at Innocent comprises of four main teams. Each of the department is made up of other small teams. The first main team is the essential department. This department comprises of the customer relations team, information and technology team as well as the finance team. The second main department is the United Kingdom team. Under this, there are the commercial operations, business delivery and the marketing team (Van 2012, p.8). The third main department is operations. Under it are the production, technical, logistics and fruit and ingredients teams. Lastly, other departments are represented by Benelux, Germany, Alpine, Scandinavian and Ireland teams. The founders of the company remain in charge. The company was growing steadily from selling only 3 cases of smoothies at a local sandwich bar to generating 3.6 million pounds in 2005 (Baines, Fill, & Page 2012, p.60).
The Coca-Cola Company owns 90% of Innocent’s shares. The company underwent four stakes of development in order to reach their up most level. The first stage is the entrepreneurial edge. This consisted of a flexible but non-formal human resource function. There was the absence of processes and systems for the management of people. The second stage that the company underwent was the emerging enterprise. There was formal structure that led to the introduction of the processes and policies (Schmidt 2009, p.123). The third stage consolidating organization involved taking stock and strategic planning. The human resource approach was supportive and aligned to the business strategy. The last process that the organization underwent and is still undergoing is on establishing the organization. In this phase, the organization focuses on performance on a long-term basis. It also is conscious on the culture, talent management and overall engagement of the people that run and drive it (Baines et al 2011, p.100).
After its introduction to the market in 1999, the company experiences a significant supermarket listing in 2004. There business doubled in size to 60 from 30 staff members. Systems and processes in the human resources department were introduced during this year. In 2006, the organization had more than 100 employees. This saw an appointment of the People Director. By 2007, the organization developed and implemented development and learning projects for both the management and staff members. This saw the appointment of the Learning and Development Manager. The year 2009 saw the organization saw the Coca-Cola Company investing in the company. The organizational shift was focused on the local target population of consumers. The various teams operating under the organization developed identities of their own. The human resources department was equally equipped with sufficient resources to run the business (Dana & Dana 2009, p443; Temporal 2011, p.57, p.73).
From 2011 to date, structures and processes were put in place. These were still operating according to the organizational culture and nature. A number of activities that are carried out in the organization involve sessions that are led by team leaders. The leaders who comprise of board members discuss the future and the proceedings of the company. The communication channeled was also established during this period. It was structured to be open with a top-bottom up approach. Employee surveys were also done annually. These surveys gave reports on attitudes and engagements as well as the quality of the human resources services provided (David 2005, p. 30).
Reasons for Growth Up to 2005
The changes in the organizational structure of the organization contributed mainly to its growth before the year 2005. This change focused mainly on developing products that were meeting increasing demands of consumers. The structure also revised and developed policies and processes, which established an environment that favored delivery of service. This resulted to retention of resourceful employees and employment of competent ones (Davis 2005, p.35).
Another reason that led to the growth of the company up to 2005 was on the selling and packaging of their products. The company sold prepackaged juices and smoothies through channels such as convenience stores and grocers to customers. This made the business exceed its projections as per their initial business plan. The move also enabled the company to grow at a 63% compounded rate (Shaw 2009, p.99-102).
With the introduction of products that were made from 100% fresh fruit, the company gained popularity among consumers. The ingredients that finalize the products were also not made from artificial or genetically modified materials. Each bottle provided the 25% vitamins that are required daily. The organization further made drinks that were suitable for children (Shaw 2009, p.145). They contained the vital vitamins that boosted and sustained their growth. The products also gained popularity among the younger generation especially the youth. This was because they were refreshing and enhanced their energy. The adult drinks were designed to consider the needs of the working adult population. In addition, United Kingdom’s institute of quality assurance examined as well as certified these products (Dana & Dana 1999, p.445).
The packaging of products in different sizes that were suitable for different tastes was also a plus. Products were packaged in 250ml for children and 500ml for young, adult or older consumers. The 1000ml bottle was designed for products that needed to be consumed by the whole family. The aging population formed a surprisingly significant liking to the quality products due to their healthy ingredients. The producing and packaging of products according to age ensured a wider market, which translated to higher returns (Robert 2007, p.232).
The company also strategized on reaching out to the international market. With the rise of global health complications such as obesity, cancer and others, most of the consumers in Europe were attracted to innocent products. Within no time, shops and other outlets in most parts of Europe were distributing smoothies and drinks to consumers. This move doubled the company’s revenue and led to it opening more branches and outlets even in other continents such as America (Baines, Fill & Page 2012, p.88).
Strategies Employed from 2006
In the course of the new millennium, various factors altered consumption of products. These factors were such as the decline of the global economy and global warming which affected the climate of productive areas. The crisis led to low performance in food related companies, and many of them closed down. As a result, unemployment rates shot to high levels. Consumers then opted for cheaper products that could suit conveniently with their income. The Innocent Drinks Company alongside other companies faced the effects of inflation. In order to maintain its enviable position in the market, it formulated various strategies. The company sought to review their marketing and sales strategies. This was in a bid, to maintain their market share and growing sales (Roberts 2007, p.209-211).
One of the strategies that the company employed to curb the situation included changing its promotional strategies. This was done in the company’s website. The site stated that innocent products are fresh, entirely pure, and unadulterated. The statement assured consumers that they got a 100% delicious and natural drink. In the event that consumers find the products falling on the contrary, then they should contact the company. The company then stated that they would apologize for any complaint regarding the content of its product. This strategy assured consumers that Innocent Company is committed to distributing only products that are sensitive to their health and that are of excellent quality (Shaw 2009, p.142).
The organization also improved the delivery services of their pro...