business studies term 1 yr 11- boost juice

role of boost in society- include what they make, how much profits they make, range of income for exmployees, competitors, target market and how they stay relevant

• primarily produces fruit juices and smoothies

• all made in store, made to order, by employees

• profits of over $320 million AUD a year which boosts economy, as it increases local consumer spending due to increased employment

• income ranges from $16 - $35 of employees

• top competitors are Top Juice, Cali Press and Starbucks

• Boost is innovative as they produce new products, such as vegemite smoothies, to intice the customer base and stay relevant in a competitive market.

• Boost filled the gap in the Australian juice market as it offered a healthier alternative which was appealing to health-oriented australians in the target market of 25-35 year old women

who is the owner and why did thet make boost

Janine Allis- she made it to fill a gap in the market for healthy juices. for the first 3 years she made no profits.

how does boost create wealth

• creates jobs which stiumlates the economy and helps other businesses

• supports local suppliers of fruits and vegetables as they benefit from boosts demands

what size business is it

boost currently has over 580 stores, and has well over 200 employees, making it a large business. It is also a tnc (trans-national corporation) that operates across a span of 13 different countries.

what industry is boost in.

boost is part of the quinary sector, as it handles foods and beverages which are typically done within the household.

what legal structure is boost

boost is a private comapny (pty ltd), meaning it is incorporated and has limited liabilty, so Janines assets cannot be taken if the business becomes bankrupt.

when was boost founded

27th of march 2001 by Janine Allis

factors influencing the choice of legal structure?

• size- large comapny, needs to be incorporated so there is limited liabilty

• ownership- boost is owned by janine allis and retail zoo, which is the parent company, janine is likely to stay a private company so she still maintains a certain amount of control whilst still having the finances of shareholders.

• finance- private company means she has imporved access to loans as she is less of a risk to banks and can get money from her private investors.

3 external influences

• economic

  • boost was founded in 2001 and the economy grew strongly between 2011-2002, although there was low consumer confidence

  • boost relies on the flow of the economy to determine how much profit will be made in that term, they must deal with the cycle of the economy, and cut costs during recessions and busts, and try to implement value packs or discounts, but then employee more workers during peaks and growths.

  • Some extreme economic conditions that have impacted boost include, COVID and the 2008 financial crises

• social

  • boost needs to respond to the changing needs and wants of their consumer base to stay relevant (such as producing new innovative smoothies, like the ones with vegemite)

  • they must repond well to consumers changes in morals and values, including the growing concerns about enviormental sustainability, they repsonded to this by using paper cups and straws, which is safe for the enviorment.

• legal

  • boost has had multiple lawsuits where they compromised legislation

  • the accc has created laws that concern the fruit juice industry that must be complied with

  • they must also follow laws surrounding the fair work commission, ensuring the fair treatment of staff

  • juice industry code of conduct must also be followed to improave the relationshiop between wholesalers and suppliers

internal influences

• Location

  • boost relies on foot traffic for profits, so location in prime areas is an important factor influencing profits

  • examples include shopping cntres, such as bondi junction, bondi beach and randwick junction

  • proximity to supplier is also an important factor, so having non-rural stores is an important influence

• profits

  • affects the business and profits because they dont have to pay money for a warehouse and the upkeeping of machinery because everything is made in store, on an order basis, which means the process of producing the goods takes longer, which may result in customer insatisfcation, but lowers the expenditure

• resources

  • human resources are the most important part of boost, because they have to make the smoothies and are the essetial backbone of the business

  • Physical resources are also of high importance because they allow the goods to be produced

  • all resources are of value to producing profits but are also the leading cause of expenditure

what is boost managemnt starutcure

boost management structure is behavioural because it relies on the opinions and ideas of employees by having consultations with them to gain a range of ideas that lead to better choices. Also, it motivates employees to work harder and feel more empowered within the business. however, it is a very time consuming process.

what are the stakeholders in boost

• shareholders (private as the company is not listed on ASX, including the founder Janine Allis)

• managers

• employees (there is 763 employees across asutralia)

• society and customers (2 sip guarantee, consumers want low prices for high quality goods, they want a good taste, so boost implemented the 2 sip gaurantee, consumers value enviromnetal sustainability, so they chose to utilise paper cups and straws and they have a transparency in the production so consumers can be sure of the quality)

• enviroment (planting 10,000 trees a year and use non-toxic ink on paper cups and straws to help the enviorment)

establishment stage of boost

• boost was established on the 27th of march 2001

• Janine self-raised the first funds

• first stiore was located in adelaide

growth stage of boost

• janine decided to purchase more store-fronts for the franchise in order to expand the business

maturity stage of boost

• growth started to slow down, but sales remained high

• not as much marketing because brand awareness and consumer loyalty is high

• produced new lines of products, such as protein balls to maintain relevance in the market

post maturity stage of business life cycle

• boost has not yet reached the stage of post maturity but when it does it has three choices:

  1. steady-state- continue at the same rate it is now, but cannot stay in this phase for long without renewal or decline

  2. decline- meaning they failed to stay up to date with what consumers expect, such as new flavour combinations or continueing the esignificant negative enviromnetal impact

  3. renewal- where they introduce new products and stay up to date with consumers chnaging needs and wants and be proactive to problems.

has boost experienced voluntary or involuntary cessation?

due to excellent management, strategic financial planning and a loyal customer base boost is yet to enter cessation. Due to the lack of public shareholders if boost were to decline it would likely result in voluntary cessation because of Janines limited liability so she wouldn’t have to sell her personal assets.

how did boost combat the issues for each stage of the business lifecycle

1. Establishment

   • faced many challenges- including acquiring loans andthe criticism for the high sugar concentratuon in their drinks

   • janine was able to secure bank loans by putting her own house up as an asset

   • they combatted the sugar criticism by advertising the use of natural sugars andlow sugar options.

2. Growth

   • there was extreme negative media perceptions of boost and harsh rising costs of wages

   • boost combatted these challenges through the SAP concur program, which helped them manage money

   • they continued to expand the product range to keep consumers excited about the brand

3. Maturity

   • boost works to maintain its brand image by adjusting to regional variations of consumers needs and wants

   • they work to cater for the different taste palletes