THE SUCCESS OF INNOCENT DRINKS USING COMPETING VALUES FRAMEWORK AND PESTEL ANALYSIS.
Innocent Drinks was started by three friends in 1999 that developed premium smoothies that contained 100% natural fruit with no water or added sugar. The aim was to provide people with quick ready-to-go and healthy food and drink options. The company is now one of the best-loved and fastest growing businesses in Britain. The highly successful Innocent Drinks sells $2 million smoothies per week across Europe, building a 72% market share in the 8 years since they were founded (Anne 2008). They give 10% of their profit to charity and continually participate in fund-raising activities such as ‘The Big Knit’. Throughout the years, Innocent has managed to sustain a creative work culture and stay true to their brand values. Their skilful recruitment of staff ensures that people working for them share the same vision for the company thus are driven to success. Another strategy that has been a success for them is their branding using straightforward and simple approach with friendly and cute labels and commercials (Jonathan Salem 2009). To raise their funds and expand further, their ventures with big companies such as Coca-cola have been a great step in expanding the business into Europe. The aim of this piece of work will be to analyse the success of Innocent Drinks by using the Competing Values Framework and PESTEL analysis to ascertain the future prospects of the company over the next few years. This will be done by looking at all the different aspects of the company and how they contribute to its success.
The Competing Values Framework of Quinn and Rohrbaugh (1983) is a theory that was developed initially from research conducted on the effectiveness of organizations. The basic framework consists of two dimensions, one drawn vertically and the other drawn horizontally forming four quadrants. One dimension emphasises flexibility, discretion and dynamism while the other dimension emphasises stability, order and control. The quadrants are made up of models including the human relations model, open systems model, rational goals model, and internal processes model (Quinn & Rohrbaugh 1983). Keeping the models in mind, the company’s strategies are discussed starting with the human relations model.
The human relations model places emphasis on flexibility and internal focus and stresses cohesion, morale and human resources development as criteria for effectiveness. Innocent have developed and sustained a creative culture among its entire workforce which has enabled them to remain true to its core brand values throughout an extended period of growth and expansion. Effective communication is an integral part of the company’s culture ensuring that there is involvement form every department. Innocent arranges big quarterly meetings, monthly forums for debates and weekly catch up involving the whole company so that people are able to express their thoughts and give inputs. Any decision big or small, is made with the involvement of all employees to ensure they don’t feel neglected or a part of the team. The organisation shows compassion by donating 10% of their profit to charity every year. This appealing factor makes them different from others as not many organisations make such promises. One popular public relations program, “The Big Knit,” enlisted people to knit tiny caps which were placed on bottles of Innocent Drinks. The company then donated a portion of every purchase of a capped bottle to an organization that provided warm clothing to elderly citizens. Again, showing compassion and participating in good causes keeps innocent in the good eyes of the people. As well as staying true to the values of the company, Innocent has a great marketing strategy which has kept them at the top.
The open systems model emphasises flexibility and external focus and stresses readiness, growth and resource acquisition and external support. One of Innocent’s...
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