Innocent Drinks Business Analysis Essay

3520 Words Jun 5th, 2011 15 Pages
BA (Hons) Business Studies

Word Count: 2,729


Introduction 3
Evaluation 4 Macro Environmental Analysis 4 PEST Analysis 4 Political 4 Economic 4 Socio-Cultural 4 Technological 5 Environmental 5 Legal 5 Porters 5 Forces 6 Threat of Entrants 6 Power of Suppliers 6 Power of Customers 6 Threat of Substitutes 6 Competitive Rivalry 6 Internal Analysis 7 Resource Analysis 7 Physical Resources – 7 Financial Resources – 7 Human Resources – 8 Intellectual Capital – 9 SWOT Analysis 10 Core Competencies 11 Primary Activities - 11 Inbound Logistics 11 Operations 11 Outbound Logistics 12
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• The cost of competitors – Economically superior competition may force Innocent into price war which it couldn’t survive without outside support. • Credit Crunch – The smoothie market is in decline as customers focus less on health and more on survival.


• Charities in need of help – Greater emphasis has been placed on the need to sustain charities as funding dries up due to government debts and stakeholders giving less in the recession • Fair Trade – Demand for fair trade or ethically sourced produce continues to grow strong, even throughout the recession.


• New technologies allow lower carbon emissions for transportation • Research into recycled material has cut packaging costs • Internet – Has allowed for free flow of communications between organisations and customers


• Climate change issues – Continued research into effects of climate change which could change shipping legislation. • Pollution of shipping – Fines introduced for goods with high carbon footprint


• Embargos/Quotas – These could be set to a specific level, limiting the amount of produce which can be exported. Due to Innocent exporting whole fruit this could affect the water output from an area and so government quotas are installed.

Porters 5 Forces

Porter’s refers

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