MANAGING THE GROWING ORGANIZATION INDUSTRY PROJECT REPORT
Mission Statement: “To become one of the world’s most famous and loved brands” (Boost Study kit).
Products: Fresh Juices and Smoothies
We selected Boost Juice for this task because it is the fastest growing juice and smoothie brand in the Southern Hemisphere, and it has a good model for understanding growth stages of a business. Furthermore “Boost is an appropriate name considering the staggering growth this company has achieved. Boost Juice is doubling its revenue every three months, and now Janine’s company is opening a new store every week” said Wealth Creator in (Boost study kit).
Brief History
When Boost Juice started, it was not begun by an encountered prepared retailer, it was begun by a young lady Janine who had no clue about business, and however she was motivated for taking up risk and wanted some adventure in her life. It is clear that higher the risk higher will be the return, she took up risk and now we have her success story (Boost Juice Bars, n.d.).
The couple after getting married wanted to control their fate. She had already worked in various businesses including film organization, on a yacht and as a nanny. However she never ran businesses. In 1999 throughout a trip with her spouse to the USA they saw the Juice and Smoothie class over yonder. To be completely forthright, she did not prefer the thought in the USA, yet she did as the classification of bravo, sound items. With an unadorned bit of paper, Boost was made. They drew up a business plan and displayed it to some of the mates. Everyone had confidence in her and then her husband Jeff transformed their hard win money into a business (Boost Juice Bars, n.d.).
Jeff discovered a site in South Australia in King William Street and we had his Dad sit out the front of the store counting people and provided that they were male, female and harshly how old they were. When they were content with the stream they marked their first lease and opened their first store. They constructed the business one client at once, they were one of the first retailers to present a devotion program and they put a gigantic surety in the store so they could hear everybody’s reaction. Now there are 250 stores in 14 nations, and are as of now developing solid, on account of their stunning Boost that work for them (Boost Juice Bars, n.d.). Inside begin of the business she never had the proposition of opening only one store. In spite of vision for opening more than one store, she never truly knew how enormous the mark might come to be (Appendix Q2.)
STAGES OF GROWTH BOOST JUICE EXPERIENCED
Businesses differ in their size and growth rate (Churchill & Lewis, 1983). Growth rate of organization is dependent upon various factors including organizational structure, management style and many other factors (Fatas, 2000). Similarly Boost Juice has experienced growth due to various factors details of which are mentioned in the Appendix. Different researchers over time have developed various models to find examine the business and its growth. Here we are considering two models and we will see what stages Boost has already covered.
Model 1
(Exhibit 1 in Churchill & Lewis, 1983)
Traditional Approach (Churchill & Lewis, 1983), as per this model there are five phases of growth of an organization. The dimensions include size of the organization and age of organization. As per our research and interview Boost Juice has covered following phases:
Phase 1 has been covered which is growth through creativity, when Janine first made the business plan she incorporated all the creativity and used creative ideas to attract more customers towards the store. Furthermore as she said, “I dedicated myself completely to the profound close at the beginning, did not take no for a response and never looked back” (Appendix Q2).
Phase 2 has also been covered i.e. growth through direction when she started franchising in 2001, which is only 1 year after incorporation this stage started where she actually started directing people and started expansion (Appendix Q3).
Phase 3 has also been covered i.e. growth through delegation. “We truly tell individuals at the begin, ‘If you would prefer not to impart your figures on benefit and misfortune, you’re getting into the wrong organization’. We discuss P&l’s (Profit and Loss) each month” (Appendix Q3). Hence by properly delegating the authority and keeping control in her own hands she expanded exponentially.
Phase 4 has also been covered i.e. growth through coordination, as she said “Astounding items, extraordinary staff and a liquid business plan have made Boost Juice one of Australia’s most adored marks. One store in Adelaide has developed into 181 stores all around Australia and 64 stores abroad” (Appendix Q5). Here effective communication and coordination helped her in growing.
Model 2
(Exhibit 2 in Churchill & Lewis, 1983)
Modern Approach, as per this model following phases has been covered by Boost Juice:
Stage 1, Existence has been covered, when in 1999 Janine and Jeff came up about idea of developing Boost Juice. In 2000 the business was incorporated. “With an unadorned bit of paper, Boost was made. We drew up a business plan and displayed it to some of the mates” (Appendix Q1).
Stage 2 Survival, has also been covered by Boost Juice when the brand was able to complete with off of its major competitors. Janine said that she was able to cover up this stage by actually understanding the customer needs. She further said that her philosophy is about keep customers first and by understanding their needs and wants, which is done through focus groups, feedbacks etc (Appendix Q4).
Stage 3 Success stage has also been covered as she said “one store in Adelaide has developed into 181 stores all around Australia and 64 stores abroad” (Appendix Q5).
Stage 4 Take-off stage has also been covered by Boost Juice because of its global operations the size has increased exponentially and age has also gone up.
CURRENT GROWTH STAGE OF BOOST JUICE
Currently stores are located in Australia, UK, South Africa, Chile, Kuwait, Indonesia, Hong Kong, Estonia, Lithuania, Mexico, China, Malaysia, Singapore, Macau, Germany, UAE and Thailand (Boost study kit).
Model 1
(Exhibit 1 in Churchill & Lewis, 1983)
As per this model currently Boost Juice is in the last phase i.e. Growth through collaboration, here the size of the business has increased a lot and now the business is in mature stage.
Model 2
(Exhibit 2 in Churchill & Lewis, 1983)
As per this model again the business is in last stage i.e. Resource Maturity, where size has increased and it is now a mature business. Furthermore as mentioned above boost juice is doubling its revenues every month it again support our argument that it is in this last stage. Here management style is line and staff, there are extensive formal systems and major strategy is return on investment.
Benefits of Growth
The main aim of existence of any business is shareholder wealth maximization or profit maximization. Increased growth means increased shareholder value and increased profits. The main benefit of growth hence is profit maximization and again as mentioned above its revenues is increasing exponentially. With this comes increased market share again which is mentioned that it is fastest growing juice brand in Southern Hemisphere. Increased market share means increased customer base.
Risks of Growth
It is very famous that higher the risks higher will be the returns (Street, 2004). With growth one of the major risks is that you cannot yourself control each and everything now. As initially Janine was able to take control of everything but now with increased growth as the size has increased manifolds she has to delegate authority. Major risk here is delegation of authority. She mentioned that having right people help you grow, because having right people help in reduction of this risk.
Recommended growth strategies for Boost Juice
Boost Juice has been doing great since its incorporation, which is clearly shown by both its financials and non financials. Return is increasing, sales are increasing, market share is increasing and it is expanding globally. Hence all of these suggest that the brand is doing great. However we recommend that being in the last stage it is very important for the leader to increase collaboration and communication hence they need to focus on that. Janine should stick to her philosophy and business idea but should just increase collaboration. Even when she is delegating she must keep some power in her own hands (Singh & Mitchell, 2005). Being a successful business she has two options of continuing i.e. operating the business herself or she can also sell it. It is recommended that she continues to run the business herself. However there is option of selling it at much higher profit as well.
Appendix
Interview Transcription
Q1. How the idea of developing Boost Juice came into your mind?
In 1999 throughout a trip to the USA we saw the Juice and Smoothie class over yonder. To be completely forthright, I did not prefer the thought in the USA, yet I did as the classification of bravo, sound items. With an unadorned bit of paper, Boost was made. We drew up a business plan and displayed it to some of the mates.
Q2. What is the secret behind your growth?
Inside begin of the business I never had the proposition of opening only one store. In spite of my vision for opening more than one store, I never truly knew how enormous the mark might come to be. I dedicated myself completely to the profound close at the beginning, did not take no for a response and never looked back.
Q3. What strategies did you used to increase the growth of Boost Juice?
One of my development methods was franchising. It was an incredible approach to develop the business, less regarding trade however in for cold hard currency terms of value. All Boost franchisees are alluded to as accomplices. “They are a paramount part of the Boost gang”. “Their triumph is our victory and visa versa.” I don’t trust in letting accomplices fight for themselves. Support will source the best areas with the most sensible lease with the intention that all Boost organizations are gainful. “We are completely transparent”, of the plan of action. “We truly tell individuals at the begin, ‘If you would prefer not to impart your figures on benefit and misfortune, you’re getting into the wrong organization’. We discuss P&l’s (Profit and Loss) each month. They see our own, we see theirs and we talk over how to enhance their primary concern. A great deal of franchisors stress over their top line on the grounds that they get eminences. We stress over their [franchisees] end result in light of the fact that we need to determine they are as fruitful as could reasonably be expected, since in the event that they’re a robust business it helps the business general.” Another essential thing is that “Once you’ve put the right individuals set up, everything is simple”.
Additionally in 2010 we were “Winners of franchise Council of Australia’s International franchise award”. Mainly we grew by knowing we were doing actually.
Q4. What was your philosophy for the business?
Our theory has dependably been to comprehend what the client needs and offer it to them. As a client myself I realize that the main true way an organization can make you joyful is by listening to what it is you truly need and afterward offering it to you. So I made this theory, Boost’s logic and still drive the organization and individuals’ today. Ultimate philosophy is that customers know the best, which we find through focus group research, Customer feedback and Boost guarantee.
Q5. Tell us something about Boost Global and how is it related to growth of the business.
Astounding items, extraordinary staff and a liquid business plan have made Boost Juice one of Australia’s most adored marks. One store in Adelaide has developed into 181 stores all around Australia and 64 stores abroad. Never one to rest on her shrubs, or kiwifruits, Janine Allis’ next center is to make boost a worldwide sensation. So in May 2010, US based private value firm, The Riverside Company obtained a major stake in the Boost’s guardian organization The Retail Zoo. This assertion, gives Boost the money related support and global smoothness required to transform the organization into one of the planet’s most adored marks.
Q6. How important is the role of employees in growth of any business?
Having right people is fundamental to growth, I have always been thankful to my employees including Kylie Hessel (Group receivable and payables manager), Olivia Elsley ( General Manager International), Jo Ocampo (IT systems administrator) and many more.
Q7. How Boost Mobeel helped in growing?
Effective marketing is essential for growth, the idea of Boost Mobeel was to provide convenience as well as to market the brand and increase customer awareness.
Q8. What do you think is your competitive advantage?
Each year we use in excess of 6 million Bananas, 5 million oranges, 3 million pieces of fruit, 3 million carrots, 100,000 + full celeries, ½ million pineapples, 800 tones of watermelon, 20 million strawberries, 1 million entire mangos, 8 million raspberries, 49 million blueberries, and 3 million enthusiasm tree grown food.
Q9. What was one of the greatest setbacks you needed to succeed? What’s more what did you gain experience from it?
Too much to list, but all in all when I think once more at the nights that I couldn’t rest and being stressed to the point that I couldn’t consume, I am appreciative for all the issues, setbacks and botches, since it shows you to be less self-important, all the more comprehension, harder on yourself and your business, more tolerant and more fearless. But above all it reminds you that you need to press on to strike yourself and your business to guarantee you are continually staying in front of the diversion.
Q 10. What are three bits of consultation you might furnish to begin ups/small business that are attempting to develop their organizations?
- Encompass yourself with extraordinary individuals. Procure gradually and do a considerable measure of examination and fire rapidly, when you know it is not meeting expectations.
- Know your numbers, when you are beginning up a business Do Not get other individuals to do you accounts, this is the place your business heart is and in the event that you don’t comprehend your numbers and know precisely what your business is finishing fiscally then stop and go study.
- Appreciate the excursion. When you are running your business you will be investing more of a chance with your business than you will be with your accomplice, children and pooch, so pick something you could be heartfelt about.
Q 11. What has been your motto?
Live your life by Soar:
Solutions
Ownership
Accountability
Responsibility
References
Boost Juice Bars, Retrieved from http://www.boostjuice.com.au
Boost Juice Facebook page. Retrieved from https://www.facebook.com/boostjuice
Boost Study Kit. Retrieved from http://www.boostjuice.com.au/wp-content/uploads/2011/08/A4173_BBB_Study-Kit_2012_v1.pdf
Churchill, N. C. & Lewis, V. L. (May June 1983). The five stages of small business Growth. Harvard Business Review, 3-8.
Fatas, A. (2000). Do Business cycles cast long shadows? Short run persistence and Economic growth, Journal of economic growth;5, 147-162.
Interview with Janine Allis, owner of Boost Juice
Street, C., (2004), Small business growth and transparency, MIS Quarterly Vol 28, pp 473-506
Singht, K., & Mitchell, W., (2005), Growth Dynamics: The Bidirectional Relationship between Inter firm Collaboration and Business Sales in Entrant and Incumbent Alliances, Strategic Management Journal Vol. 26, No. 6 (Jun., 2005), pp. 497-521
