Management at Boost Juice Company - Case Study Example

Management at Boost Juice Company Name Institution Tutor Date Executive Summary This paper examines the practice of management at Boost Juice Company. A critical aspect from the analysis is that management is an important aspect in enhancing the competitive advantage of a firm in any industry. Additionally, the approach to management influences the strategies adopted by the firm. The analysis discloses that Boost Juice Company has concentrated mostly on marketing its products essentially within the international market as opposed to innovation. This paper proposes that the company should shift its focus from marketing to innovation. Table of Contents Executive Summary 2 Introduction 4 Background of the company 5 Importance of the company 5 Competitive Advantage 5 Sustainability Issues and strategies 6 Human Resource Management 8 Role of international Business 10 Technology Management 10 Importance of the company 11 Entrepreneurship and Innovation 11 Future strategies 12 Conclusion 12 References 13 Introduction The strategic significance of management has increased essentially after the recent financial crisis. Management is today perceived as an important component of the survival and the success of any organization. In the recent decade, management theories have identified several key management issues that should be integrated within the practice of management. Some of the issues include: understanding and responding to the external environment, improving strategic thinking, managing change, developing and empowering employees, creating a competitive advantage, applying technology, creating an environment of excellence and devising optimum systems / structures (Cole, 2004).The manner in which organizations apply this concepts differs from one organization to the other. The paper therefore seeks to conduct a management analysis of Boost Juice Bars, one of the leading fruit Juice companies in Australia. Background of the company Boost Juice was initiated by Janine Allis a suburban mum in the year 2000. Janine came up with the idea of starting a juice bar venture in 1999 during a trip to the United States. During her trip, she noted that the smoothie and juice market was booming. She therefore took the idea back to Australia where no company was dealing with juice bar outlets despite Australia’s warm climate, outdoor lifestyle and a health conscious population (Boost Juice. Com, 2015). The motivation to come up with the venture was instigated by the fact that Janine is a health conscious person and an advocate for healthy living. She therefore introduced such concepts into her fruit juice business. Her vision was to conduct retailing differently and develop a customer experience that was unique. Janine conducted a study of the local retail sector and discovered that very few outlets provided healthy fast foods in the Australian market at that particular time. She therefore developed a different business concept which involved providing healthy fruit juices to the market (Boots Juice. Com, 2015). The business has grown tremendously over the years and blends and squeezes thousands of fresh fruits each year. The desire for fresh and health fruits has resulted to over $2billion sales globally since the formation of the company. The company is currently located in 17 countries (Boost Juice. Com, 2015). Importance of company to the Australian and international business landscape According to IBIS World (2015) market research, the fruit juice industry in Australia is evidently a saturated one. This has mainly been instigated by increased product innovation which has resulted to an influx of players into the industry. In the previous five years, the industry has experienced challenges such as; a decline in customer sentiments and increased competition that arises from private labels. The rising competition has led to a significant amount of pressure on revenue attained by firms in the industry. However, the industry is still supported by the increase in health consciousness (IBIS World, 2015). This implies that a company such as Boost Juices is still significant to both the Australian and international market. Within the local context, the company has undertaken numerous expansion initiatives in different parts of the country. Every time a new Boost Juice bar is launched in a shopping centre, a new level of enthusiasm can be seen on the faces of the customers. Most people buy Boost products specifically because they are entirely unique (Boost Juice. Com, 2015). Also, locally the company has established a benchmark which other retailers strive to attain. This is because when a Boost Juice bar is set in any strip of shops or even a shopping centre it creates an atmosphere of colour and fun which attracts many customers to the store. Many retailers have therefore worked hard to copy Boost’s approach (Boost Juice. Com, 2015). It can also be stated that the brand has placed Australia on the international map, essentially in the fruit juice industry. Many fruit juice companies exist in the market as disclosed by the IBIS World (2015) market research, however not many of the companies have expanded their operations to a similar level as Boost Juices. Competitive advantage of the company The activity- based view of the firm provides a powerful framework of gaining a competitive advantage. According to view, competitive advantage can be gained when a firm spreads its activities internationally to multiple and different locations, while gaining a potential competitive advantage through coordinating activities across locations within the global network (Porter, 2008). It can be stated that Boost Juices has implemented the activity-based perspective of the firm by conducting international expansion as a strategy of gaining a competitive advantage. Boost has actively engaged in international expansions through franchises which are well coordinated in various locations of the world. A key approach of effective coordination has been through the use of localisation whereby the company uses both local management and marketing approaches in order to sell their products in various regions (Boost Juice. Com, 2011). Additionally, the Resource based View (RBV) propagates the use of a firms internal resources as a tool of gaining a competitive advantage (Hoskisson, al, 1999). Boost Juice has evidently used a key resource which is its fruit juice products in order to gain a competitive advantage. By differentiating its products the company has continuously attained dominance in the market. Vashisht, (2005) highlights that differentiation is a viable approach of creating a competitive advantage. This is because a firm can be superior to the others by making the products or services different from those of the competitors. It entails the ability to offer superior and unique value for the buyer in terms of product quality, after sales services and special features (Vashisht, 2005). A key element of differentiation at Boost Juices is through the features of the products offered. Most of the juices and smoothies provided by Boost are designed in a unique and attractive manner which is quite different from other competitors in the market. For instance; the cup used by Boost is always bright green with a mixture of orange and yellow. A funny character is also placed on the cup which brings out the personality of the brand as one that is full of fun. Boost also differentiates its products by offering supplementary products healthy products such as snacks and yoghurts. Additionally, the management also ascertains that the quality of services offered to the clients are exemplary (Boost Juice. Com, 2011). The porter theory of competitive advantage provides a prolific approach that can be used to evaluate the competitiveness of a firm within a certain industry. According to Porter (2011), the strategies adopted by the firm within their operating environment can influence the competitiveness of the firm within the market of operation. In order to gain a competitive advantage both in the local and international market , Boost Juices has adopted various strategies that seem to be beneficial essentially within the local market and also the international market . One of the key approaches of venturing within the international market is localisation. Boosts approach to localisation is through creating international uniformity. When people travel across the globe they are certain that the product they purchase from Boost will be similar and have the same taste. However, Boost tries to provide a local taste of each product its offers. A case in point is the smoothies which are used for different purposes in different countries. For instance in some countries it is used as a treat while in others it is used as a meal replacement. Boost Juices therefore prepare the product depending on its purpose in that particular country (Boost.com, 2015). The company acknowledges that local markets have local tastes and needs that need to be fulfilled. The localisation strategy for Boost Juices has therefore been a useful strategy of creating a competitive advantage. Sustainability practices of The Boost Juice Company Business are today have the tendency of integrating the expectation of the society into the strategies of the organization. This can basically be supported by the fact that organizations do not operate in a vacuum but rather within an environment. Additionally, in order to move from uncertainty, businesses today strive to integrate the concept of sustainability into their practices (Hannon and Callaghan, 2011). Managers have also come to the realisation that integrating suitability issues and strategies into their business operations does not only meet the expectations of stakeholders but also it can result to the creation of a competitive advantage (Petrini and Pozzebon, 2010). Boost Juice has adopted various sustainability strategies and issues into the company’s operations. Leadership is a very central element of sustainability (Kanters, 2014). Various studies have been conducted to examine the significance of leadership on sustainability. The studies such as those by Browne et al (2003) have disclosed that leadership plays a pivotal role in enhancing and adopting sustainability. Janine Allis together with her husband Janine Allis have adopted a leadership style that is warm, natural and inspiring. The workforce in the company are greatly motivated to attaining the objectives of the company. As a leader Janine defines herself as having a hands on approach of running the business. This has assisted her to develop and understand the issues that face the business. Janine uses this type of leadership approach in order to influence her employees to adapt sustainability. For instance; due to the increasing health consciousness, the fruit juice industry has been under pressure to reduce the amount of sugar used when coming up with the products (Jasper, 2014). Janine has always maintained the idea that the products should be from real fresh fruit and low fat. The employees of the company has constantly worked towards ensuring that they meet this requirement. Savitz, (2005) argues that a sustainable business is one that makes profits while at the same time caring for the environment and improving the lives of people in society. When Boost Juices is practically analyzed, it can be stated that the entire business process of the company is grounded on sustainability. By focusing on providing fresh fruit drinks the company cares about the health of the people. Additionally, Boost has established a foundation that supports children and young people from backgrounds that are not economically stable. Additionally, Boost is very much aware about that the environment is very significant in the development of a sustainable future. The company has therefore been working towards minimizing the implications of its activities on the environment. For instance in the year 2012, the company released a new version of paper cups that had more environmental benefits. The cups were developed from paper that is biodegradable and renewable therefore making the resources used by the company sustainable (Boost Juice. Com, 2015). Human Resource management practices at Boost Juices As argued by the Resource Based View, the resources of an organizations are a useful element in creating a competitive advantage for the firm (Deb, 2009). Additionally, Niehaus (2012) argues that the employees play a critical in the success of the organization as a result the management of the human resource should be undertaken effectively. Boost recognizes the strategic role of employees in influencing performance. As a result, the company works towards ensuring that the human resource function is well managed. One of the key practices implemented by the company is employee motivation. At Boost Juices, employees are provided with both intrinsic and extrinsic motivation. For instance; the work environment is full of fun and the employees are always free to express their views. Additionally, the employees are provided with adequate incentives such as a good pay, holidays and rewards for best performers (Boost Juice. Com, 2015). Based on the fact that the company operates franchises across different locations in the world, International Human Resource practices adopted by the company are usually suitable for the country of operations. The company mainly works with the local partners as the key experts in the region of operations. Consequently, employees in different regions of the world are managed using the local human resources management practices (Boost Juice. Com, 2015). Role of international Business in the company The critical function of international business at Boost Juice is to boost and expand the brand. The company has therefore constantly ventured in international marketing offering in order to promote its brand to other regions of the world. The company ascertains that the messages it gives to the foreign market are just as persuasive as those that are used in the local market (Boost Juice. Com, 2011). International business is also used by the company to promote international customization. Through the use of the franchise approach as a mode of entry, the company is able to promote international customersation. International customization basically entails recognizing that customers are the world posses different customs, values, media habits and purchasing power, as a result, when developing strategies a company puts into consideration this aspects. Boost ensures that the existing differences of customers are well taken care of. As noted earlier, Boost prepares different types of smoothies to fit the culture of people in different parts of the world (Boost Juice. Com, 2011). Technology management The systems theory perceives an organization as a system, whereby each part of the system has to work in collaboration in order to attain the set objectives (Kelly and Kelly, 1998). Companies such as Boost Juices have franchises in many parts of the world and also numerous branches in the local market which work together. The use of technology is therefore significant for such operations (Boost Juice. Com, 2011). Boost has actively integrated technology in its system of operations. The company uses technology such as social media to market their product. Additionally, the company has integrated IT in coordinating different business activities both locally and within the international market. For instance in the event that managers of the various franchises need to communicate, video conferencing has been useful (Boost Juice. Com, 2011). Entrepreneurship and innovation at the company Since the inception of the company in the year 2000, the company has not conducted much of product innovation. However, the company come up with supplementary produces that are to be provided with the juices. A major area of innovation that has been ventured by the company is marketing. The company is a global leader in marketing and design. The marketing strategies adopted by the company in various countries have been considered to be very unique. This is because the strategies are accompanied with ideal designs that attract people from different cultures of the world. Within a period of five years, the company attained a brand awareness of 94% (Boost Juice. Com, 2011). Future strategies management should engage in Based on the analysis conducted, it can stated that one of the key weaknesses that the company has is that it puts more emphasis on promotional activities essentially marketing which is basically very expensive to cater for. Although the marketing function is important, it is essential for the company to divert to strategies that can develop a brand that can stand the market changes. This is because various environmental challenges can affect the performance of the business. Additionally, customer have little patient as a result a company should be actively involved in innovation (Balasubramanian, 2013). For instance, the changes in weather patterns greatly affect the sales of the company. During winter, most people do not purchase juice products and therefore affecting sales (Silverman, 2011). Based on the fact that businesses go through a life cycle and the stages of growth do not remain the same. It is essential for a company to adopt innovation as a strategy. Companies such as Amazon continue to survive the competitive market due to innovation as a result Boost Juices should focus on innovation. Conclusion The above discussion has provided an evaluation of management at Boost Juices. The findings of the evaluation highlight that it is essential for the company to reduce the focus on marketing and venture on innovation. . References Balasubramanian, S, 2013, Insight into innovation: Why companies must innovate, UNC Boost Juice. Com , 2015, Retrieved on 13 October 2015 From Boots Juice. Com, 2011, A bit about Boost, Retrieved on 13th October From Browne, T, Allen, N, and Maynad, B, 2003, Leadership Development Efforts, CNX. Cole, G, 2004, Management Theory and Practice, Cengage Learning EMEA. Deb, T, 2009, Managing Human Resource and Industrial Relations, Excel Books India. Hoskisson, R, Yiu, Wan, W, 1999, ‘Theory and research in strategic management: swings of a pendulum’ , Journal of Management, 25,(3), pp. 417-456. Hannon, A and Callaghan, E, 2011, Definitions and organizational practice of sustainability in the for-profit sector of Nova Scotia Journal of Cleaner Production,9(18), p877-844. IBIS World, 2015, Fruit Juice Drink Manufacturing in Australia: Market Research Report, Retrieved on 11th September From Jasper, C, 2014, Consumer concern over sugar driving down Australian fruit juice sales, abc.net. Kelly, J and Kelly , L,1998, An Existential-systems Approach to Managing Organizations, Greenwood Publishing Group. Kanters, N, 2014, Sustainable leadership, UVh. Niehaus, K , 2012, Human Resource Strategies for Organizations in Transition, Springer Science & Business Media. 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