case study Flashcards
(33 cards)
Advertising
- social media influencers are a part of promotional strategy
- utilize computer-generated avatars when creating
advertisements; can be used for both ATL and BTL (expand)
- See social media marketing and social networking in 4.5c
Advertising = a method of informative/persuasive promotion that is usually paid for; aim of commercial advertising is to raise level of demand for products (diverse range of beverages)
Build brand awareness, shape customer perceptions, and influence attitudes towards its non-alcoholic drinks.
Board of Directors
The board of directors is comprised of a small group of individuals elected or appointed to oversee
the management and overall direction of a company.
Chain (of a business)
a series of interconnected business outlets owned by the same company and operate under the same brand name like Lotssa Coffee
Because LC is a chain, they benefit from…
Having a chain of coffee shops enables LC to gain from brand consistency and economies of scale (cost savings and operational efficiencies achieved
through bulk purchasing, shared resources, and standardized procedures across its coffee shops).
Company
- NOTE: Myt PLC is a publicly held company
a limited liability business owned by shareholders; certificate of incorporation is issued to separate the legal identity of the owners from the business itself
Corporate social responsibility
The conscientious consideration of ethical and environmental practice related to business activity; a business that adopts CSR acts morally to all it stakeholder groups
How is Myt PLC trying to improve their CSR?
modernising factories (to be green or environmentally friendly)
reducing sugar in its products (to
reduce the health issues - obesity/diabetes associated with the consumption of sugary drinks).
Diversification
How is Myt diversifying?
In the Ansoff matrix, diversification is a growth strategy where a business introduces new products
into new markets.
Myt’s diversification includes acquiring Lotssa Coffee and Honest
Water, as well as exploring the healthy snacks market.
External growth
NOTE: Myt PLC’s takeover of Lotssa Coffee and Honest Water are examples of external growth, allowing the company to increase its market presence and
product portfolio by acquiring these existing businesses.
when a business grows through mergers, acquisitions, or partnerships rather than internal development.
Acquisition
- a method of external growth that involves one company buying a controlling interest (majority stake) in another company with the agreement and the approval of the target company’s BOD (the company being purchased)
Pros and cons of mergers/acquisitons
PROS: greater market share/economies of scale/synergy - shared resources increase productivity/profits
CONS: job losses/culture clashes/diseconomies of scale - increased bureaucracy or longer decision-making
“Green factories” are…
manufacturing facilities that are designed and operated with a focus on
environmental sustainability.
This includes reducing energy consumption, minimizing waste, using
renewable resources, and lowering carbon emissions at Myt’s factories.
“Grown in size” refers to the process of a business organisation, such as Myt PLC, increasing its scale of operations through various means
Expanding production facilities, increasing
production capacity, or expanding its product portfolio (to include coffee drinks and bottled water).
Myt has grown in size through both internal growth (such as developing new drinks) and external growth (such as acquiring other companies like Lotssa Coffee and Honest Water).
The head office of a multinational company is…
the central location of the business where key management and administrative functions are coordinated, and strategic decisions are made for Myt
PLC’s global operations.
Internal growth
when a business grows using its own capabilities and resources to increase the scale of its operations and sales revenue
Manufactures/Manufacturing
This refers to the process of producing physical goods, typically using production methods such as batch or mass production.
Market
A market refers to all existing and potential customers who have an interest and ability in purchasing a business organization’s goods or services.
Market development
Market development, in the context of the Ansoff matrix, is a growth strategy that involves a business seeking to enter new markets with its existing products. Myt PLC is pursuing market development
by expanding its customer reach through acquisitions, such as taking over Lotssa Coffee and Honest
Water, and by diversifying its product offerings, such as entering the healthy snacks market.
Multinational company
an orginization that operates in 2 or more countries with its head office usually based in its home country
Outlets
Outlets are the physical locations or points of sale where a business organization’s goods or services are offered to customers. In the case of Myt PLC, outlets include the retail locations where its drinks
are sold as well as Lotssa Coffee’s 4,000 coffee shop locations in 35 different countries.
Product portfolio
A product portfolio is the range of goods or services offered by a business.
Business plan (see text from line 15)
Document that outlines the goals of the business and how the business plans to achieve them
Pressure group
A pressure group = individuals w/ a common concern who seek to place demands on orgs. to act in a particular way/influence change in their behaviour.
For Myt
PLC, pressure groups could include health organizations pushing for reduced sugar in drinks or
environmental groups advocating for greener production methods.
Products
Products are goods or services that a business offers to meet the needs and wants of its customers.
