and management principles to students. Strategic management in case analysis is essential to the processes of analyzing, decision-making and the implementation of the underlying actions and resolutions. With such, the reader’s aspects of differentiation, speculation, and integration in the evaluation of complex problems in an organization are developed(Dess et al. 451). Additionally, case analysis is essential in identifying the various organizational situations, their analysis and the provision of sound recommendations.
The paper will critically analyze the case of Jamba Juice. A summary of the organization’s situation together with its various business issues will be highlighted. The paper will also provide a comprehensive analysis of the key issues that Jamba Juice company has been experiencing over time. Further on, the case analysis will incorporate various recommendations that would be vital in overcoming the current discussed too.
Summary of the Situation
Jamba Juice is a company that largely concerned with the production of healthy alternative foods and drinks. The company has headquartered in the New York though it has a large number of outlets in other states and regions. The company has undergone both thick and thin due to the large number of new entrants in the food and beverage industry. The key issues that face the company are critical and essentially significant in influencing its future returns, revenues, and progress.Firstly, the company is facing a great challenge inSecondly, the cut-throatcompetition in the field signals a danger in the company’s production and sales practices. Thirdly, the Jamba Juice is striving to uphold its production quantity and quality while reducing its overall costs and expenses. Fourthly, the company has channeled its effort in ensuring full engagement of her workers son as to provide and maintain excellent services to the consumers.
Key issues and their Analysis
Jamba Juice is facing some stiffcompetition from other companies that produce health alternative foods and drinks. The competition has profound effects on the company’s production and sales. Both the traditional and nontraditional outlets are facing a great challenge in their marketing and sales practices due to a large number of competitors. For instance, the traditional outlets are encountering a lot of competition from the locally based firms that produce similar products such as smoothies, baked meals, and squeezed fruits. Theother challenge faced by the traditional outlets is the seasonality in the demand for the products(Dess et al. 530). For instance in the northern states and cities such as the New York, the long cold winters lead to a drastic fall in the sales of the company’s products. With such,the demand for products from rival companies such as the Starbuck and Burger King subsequently increases. The Tim Hortonscompany that is based in Canada is one of the greatest rival of Jamba Juice in the production of Smoothies(Dess et al. 532).
The question of whether the company will be able to maintain its quality in production is a key issue. The existing competitors in the field are posing a great danger to the company’s production. The ‘health alternative’ of the Jamba Juice product has been instrumental in commanding higher demands and better prices in the sector(Dess et al. 534). However, the production of similar products with cheaper prices has signaled some danger to the future sales and demand for the company’s products. For instance, in 2010 McDonalds introducedJuice (534).The decision by the company to expand its menu base by introducing non-juice and hot products mayAs such the ‘healthy alternative’ aspects of the company’s products may be comprised.
The plan to engage the company works is also a key issue that the management of Jamba Juice ought to consider(Desset al. 533). It is assumed that the incorporservices. The assumption may not be worthwhile owing to the existing differences in character and passion for the employees. The plan by the company to reduce its expenditure while maintaining the quality of the product is a key issue too. As such, the CEO, Mr. White cited the reduction of store and administration costs as the probable areas that would help to realize the cost issues. Other critical issues in Jamba Juice are concerned with the significance of the franchise, growth plans, and the prevailing economic forces. For instance, in the year 2008, the economic challenges led to huge losses thereby prompting the closure of about ten stores. Additionally, the unbuilt locations of the company were leased(Dess et al. 531).
Recommendations
The existence of such key issues in the company necessitates the need for strategic management practices so as to maintain the production and consequently an edge against the competitors.I would recommend the following actions, techniques and actions to the leaders and managers of Jamba Juice to maintain their competitive abilities and production levels. Firstly, the increased levels of competition that is created by the existing as well as the new entrants in the market may be averted by adopting a blue ocean strategy. With such, the company should embark on serious innovations of new and unique products that the competitors cannot be able to match (Kim 6). The move will have significant effects on the prices charged for the products and the underlying demand components. The blue strategy willprompt new and unique products that will attract higher prices and hence higher returns. The maintenance of the product quality will be a fundamental requirement by the company. To achieve this endeavor, thorough research on the use of low-cost production technologies would be of great significance. Quality control measures should be upheld to maintain the customer base. The engagement of workers in the various undertakings of the company should be initiated by a clear framework to avoid losing customers. The company should embrace both online and print media advertisement of its products. The rationale for such an endeavor isto increase its competitiveness and maintain the loyalty of the customers. Any forward-looking company should embrace diversification and flexibility in production(Jovanovic 44). The action will be essential in overcoming the seasonality aspect of demand.The economic challenges should be counteracted by upholding efficiency in speculation and analyzes of the prevailing forces of demand and supply. The action would help in determining the amount to produce with regard to the demand requirements. Proper management of the franchise stores would help in increasing their revenues and hence minimal losses to the Jamba Juice.By upholding the above recommendations, the goals and objectives Jamba Juice will be ultimately realized.
Works Cited
Jovanovic, Boyan. The Diversification of Production. New York: C.V. Starr Center for Applied Economics, New York U, Faculty of Arts and Science, Department of Economics, 1993. Print.
Kim, W. Chan. “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant/W.” Chan Kim, Renee Mauborgne–Harvard Business Review (2005).
Dess, Gregory G, G T. Lumpkin, Alan B. Eisner and Gerry McNamara.Strategic Management: Text and Cases. New York: McGraw-Hill Education, 2014. Print.