Critically evaluate Innocent Drinks non-traditional ways of doing business. Choose one traditional economics’ theory to assess Innocent Drink’s product price setting

Assignment No. and type:

2500-word report applying economic theories to a case study organisation

Assessment weighting:

Submission time and date:

Target feedback time and date:

Assignment task

Innocent Drinks was set up in 1998 by three best friends of Richard Reed, Adam Balon and Jon Wright.

The company is known for their fruit smoothies and a brand image of being natural.

Innocent Drinks has a reputation of doing things “a little bit differently”. For example, the three friends’ original market research of whether they should go to a smoothie business or not, was based on bins; when people purchased smoothies in a music festival in London, they were asked to put the empty container to a bin saying “yes” or “no” regarding whether they should get into business selling smoothies. At the end of the festival the “yes” bin was full and the “no” bin was not.

Task 1 (LO1)

Critically evaluate Innocent Drinks non-traditional ways of doing business.

1. Choose one traditional economics’ theory to assess Innocent Drink’s product price setting
2. Choose one of the business decisions Innocent Drink has made, such as donating 10% of their profits to charity. Use at least one behavioural economic theory theory to analyse benefits and drawbacks this decision has been for the Innocent Drinks. Justify your viewpoint.

Task 2 (LO2)

Innocent Drinks sold 18% of the business to Coca-Cola company in 2009. By 2013 Coca-Cola owned over 90% of the Innocent Drinks.

Critically assess did Innocent Drinks make the right decision to sell first part and later most of their business to Coca-Cola? Use at least one economic theory to justify your viewpoint.

Task 3 (LO3)

Use Porter’s five dynamic forces model to analyse Innocent Drink’s main competitors in 2024. Using PESTLE analysis together with the competitor analysis, recommend the next steps Innocent Drinks should take.

This assignment has been designed to provide you with an opportunity to demonstrate your achievement of the following module learning outcomes:

LO1: Critically evaluate the alternative theories of economics and their implications for business, including traditional economic approaches and also more contemporary approaches relating to behavioural economics.

LO2: Critically assess concepts and principles underlining business activity.

LO3: Apply the appropriate models and techniques for analysing the environment within which business organisations operate

Practicalities: Referencing, presenting and submitting your work

Please see your programme handbook for information on the standard referencing style, presentational requirements and process for submitting your work.

• Overall word count is 2500 +/- 10% ; introduction and conclusions approximately 300 words, main body 1900 words
• Please follow report structure:
• Main page; University, module, your student ID, your Lecturer, date of submission and word count
• An Executive summary
• Table of content
• Introduction to the Innocent Drinks
• Main body; Tasks 1-3
• Conclusions
• References
• Appendices (if applicable)
• Title page, table of content, foot notes, references and appendices are not part of the word count
• Use clear font, such as Arial, Calibri or Time New Roman font size 12 with double spacing
• Use 20-30 academic references using Harvard referencing
• Submit via Blackboard via TurnItIn submission point before 14.00

Confidentiality

You are expected to take responsibility for maintaining and managing confidentiality issues in your work. You should maintain and respect confidentiality in relation to the protection of personal, technical and/or commercial information of a sensitive nature in your assessed work, whatever the format.

For further information and guidance, please see the relevant section in your programme handbook.

Academic integrity

Academic integrity means taking responsibility for your own work.

When you submit an assignment, you are making a declaration that it is your own work and that you have acknowledged the contribution of others and their ideas in its development (for example, by referencing them appropriately).

For further information and guidance, please see the University website: https://www.bnu.ac.uk/current-students/registry-helpdesk-and-academic-advice/academic-integrity-and-misconduct