Jamba Juice Strategic Management Analysis - Case Study Example

? Jamba Juice Strategic Managment Case Study Question Jamba’s core competencies and reasons for the identified choices in accordance to the company’s strategic decisions The company has an advantage over its competitors since the Californian society recognizes the brand for its healthy ingredients. The CEO would be acquiring competent by ensuring that the consumers accrue the outlined product benefits after every purchase and consumption of the company’s juices. Since Jamba in the past has adapted a different packaging method, it would be ideal for the company to identify the ill issues that led to the discourse and lack of the product’s success in the market. Arguably, Jamba juice has competitive advantages over its competitors since the clientele groups have been presenting their grievances on the issues that they feel important and deserving immediate redress from the organization. Similarly, the CEO witnessed the gradual increase in sales performances after repackaging the brand in new containers holding importance to the environment. Therefore, the company is certain that its recent setbacks emanated from the inclusion of polystyrene in the container linings. Such information serves for the benefit of the company since the management will eventually order the packaging and processing teams to find and use environmentally friendly materials before presenting the products to the market. The resolutions are ideal and are present in the company’s strategic decisions since the management has full knowledge that the consumer groups seek to consume products packed with the ethical considerations of the entire environment. Question 2: Description of the juice’s diversification and growth strategies Jamba’s growth and diversification strategies are ill addressed since the company failed to evaluate all the market needs prior to implementation of its product. Arguably, the management thought that the product would acquire successful outcomes after its introduction since the consumers would realize the benefits of the polystyrene cans in delivering the desired state of the juice. On the contrary, the company’s packaging failed to win the desired clientele since the society is currently embarking on the use of environmentally friendly goods while disowning those products, which deviate from the norm. Unfortunately, Jamba’s diversification strategies may not accrue any profound outcomes lest the company engages in the production of the ideal cans that the society would view as a reassurance to their health during and after consumption of the juices. For example, the company would achieve its growth strategies through offering intensive support to the society’s health considerations, and the total disuse of any packaging materials that cause any form of alarm to the environment. The juice shall reach its edge of diversification and growth in market share if the company shall successfully deviate from the ill practices, a factor that would lead to increased clientele groups, and increased population of capital investors. Question 3 The social trend that is contributing to the entrepreneurial venture of Jamba Juice Company is how people trying to outdo environmental pollution hence ensuring that the environment is friendly. Although the company claimed to be a healthy lifestyle brand, it kept on using polystyrene foam, which was harmful to the environment due to its long life. Polystyrene foam was harmful to both wildlife and human being since it posed healthy risks. Jamba CEO realized that using polystyrene foam was illegal since it caused pollution to the environment and thus it was inconsistent with the image the company wished to portray, as customers were concerned with environmental and health concerns. The consumers never wanted to benefit from using Jamba’s products and suffer from environmental pollution in the future. Additionally, most cities had already banned the use of polystyrene foam, thus Jamba Juice Company had to shift to another alternative form of cups such as lined paper cups, which were environmentally friendly. However, currently a campaign had surfaced from a website Change.org, whereby a ten-year-old girl gathered thousand signatures telling Jamba Juice Company to abstain from using polystyrene foam “Styrofoam” cups. This stressed the matter since there was a lot of public pressure demanding the company to stop using the Styrofoam cups. The Jamba Company CEO was aware that he was to trade with a lot of care since the company had faced many challenges in the past year hence dropping the stock price. In order to avoid huge losses, the company had no other choice rather than to stop using the Styrofoam cups and look for other alternative cups. Question 4 The products of Jamba Juice Company have emerged during the time when customers are aware of the environmental impacts that its products might cause. The consumers are aware that using the company’s products will pose a severe environmental hazard, which might be harmful to both human beings and wildlife. As the CEO continued with his walk, he kept on wondering whether his company should stick to its initial technique of selling smoothies or shift to a new environmentally friendly alternative demanded by the public pressure. Since there were some of the consumers, who are aware that the company’s products were in environmentally pollutant packaging failing to switch to an alternative method would result in many customers abstaining from buying the smoothies hence, experiencing a huge loss. Due to these losses, the company will be unable to cater for its expenses. The company will also not earn the returns on investments hence company will have high chances of collapsing. Question 5 Some of the seven generic sustainability strategies responses that are evident in the in Jamba Juice's decisions and practices are definitely embedded and bolt-on sustainability strategies. Under the embedded sustainability strategy, a business is always focused on the profitability of the business rather than the social and environmental impacts of the activities that the business involves in. Bolt-on sustainability strategy on the other side is said to be “green” because of the way it puts emphasis on the environmental and social impacts of the activities that a business organization involves. In a typical business environment, embedded strategies are the most common because of the way they contribute to the profitability of businesses. However, lately there has been public pressure mounting on businesses to adopt bolt-on suitability strategies. In the case of Jamba Juice, it can be easily be noticed that there is evidence of both embedded and bolt-on sustainability strategies. The fact that the company uses polystyrene foam cups in the packaging of their products only proves that the company is interested in increasing their sales through making their products different from others. The company does not really keep into consideration of the consequences of using polystyrene foam. Bolt-on sustainability strategy is evident in the different places that the company had to use paper packaging as a result of public pressure. Question 6 CEO James White is definitely guiding Jamba Juice on a strategy of embedded sustainability. This is because of the way he opts for the use of polystyrene foam in the packaging of their products. The company uses polystyrene foam despite the CEO having the knowledge of how the use of this material impacts the environment. This is further backed by the fact that the company continues to do so with only states in which the use of polystyrene foam has been banned being exemptional. This means that the business is not taking these measures because of their desires to preserve the environment but because of the fact that the use of polystyrene foam has been banned. The CEO also proves to be guiding Jamba Juice on an embedded sustainability strategy due to the fact that it is only public demand that gets him thinking on whether or not the company should continue using polystyrene foam for packaging. If the business was operating on a bolt-on sustainability strategy, then it would not have taken the public’s intervention for the company to consider stopping the use of polystyrene foam for packaging. Question 7 In many times, through management, business organizations take different strategies aimed at realizing organizational goals. As such, Jamba Juice should undertake certain strategies in its activities. In response to the situation that the company is currently in, there are various strategies that the business should opt for. For instance, the company might consider trying to use the cost leader strategy while at the same time embracing bolt-on sustainability strategy. The cost leader strategy refers to a strategy in which a business strives to have the most affordable prices in the market. The company would consider using easily recyclable packaging material that is also affordable. A good example of such materials is paper. Paper is easily accessible, easily recyclable, and also affordable. This option will enable the business to reduce its production cost. A reduced production cost will also enable the business to sell their products at affordable rates. The affordable rates are likely to earn them a lot of customers especially at this time when everyone is complaining about hard economic times. Apart from giving the company a price related competitive advantage, the strategy will also enable the business to practice in an environmentally friendly way. The business will, therefore, be able to avoid the bad public image that results from using materials that are not environmentally friendly for their production. Work Cited Fredrick A. & Barbara M. (2013). Jamba Juice and the Foam Cup. Read More