Critically evaluate Innocent Drinks non-traditional ways of doing business. Choose one traditional economics’ theory to assess Innocent Drink’s product price setting
Executive Summary
Table of Contents
Introduction- (around 150 words)
What is the main aim of writing this report
What is economics, what is micro and macro economics and why they are important
Provide a clear background to Innocent Drinks company, including the type of organisation, size of the organisation, range of products and services, customer base and which markets it operates.
How many sections will be in this report and which section will cover what
TASK 1 – 30% (750 words)
Critically evaluate Innocent Drinks non-traditional ways of doing business.
- Choose one traditional economics’ theory to assess Innocent Drink’s product price setting
- 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 1- Suggested guidance
- Define Micro and Macro economic theories
- Define market structure and identify different types of market.
- With the use of general equilibrium theory, critically evaluate different price setting mechanisms.
- Express your viewpoints regarding Innocent Drink’s price setting for their smoothy drinks.
- With the use of Decision tree model express your viewpoints on the Innocent Drink’s non-traditional ways of doing business.
- Based on different perspectives critically assess the benefits and drawbacks of Innocent Drink’s decision-making process.
TASK 2 – 30% (750 words)
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 2- Suggested Guidance
What is behavioural economics and what are the main Principles of Behavioural Economics? (Principles of (Behavioral) Economics (harvard.edu))- you may find Six principles of Behavioural Economics on this link. You may consider discussing about the choices and decisions under risk and uncertainty
Using a behavioural economic theory, critically assess did Innocent Drink make the right decision to sell part of their business to Coca-Cola? Justify your viewpoint.
Identify the relevance of these economic systems/theories in the modern economic environment, please support your arguments with many examples from the real-life market scenarios
TASK 3 – 30% (750 words)
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.
Task 3- Suggested Guidance
- Conduct an external environmental analysis by using PESTEL framework and identify main opportunities and threats for Innocent Drinks in current market environment
- Conduct an internal analysis by using Business Canvas for Innocent Drinks and identify main strengths and weaknesses of Innocent Drinks in terms of resources and capabilities
- Summarise the findings of above 2 analyses in SWOT
- Based on the SWOT, suggest some feasible strategies to Innocent Drinks
Conclusion- (around 150 words)
- Draw a concise conclusion with the summary of your findings.
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