Table of Contents

SWOT ANALYSIS ...................................................................................................... 2

STRENGHTS ............................................................................................................ 2
WEAKNESSES ......................................................................................................... 4
OPPORTUNITIES ..................................................................................................... 6
Social:................................................................................................................... 6
Technological: ....................................................................................................... 7
Environmental: ...................................................................................................... 7
THREATS ................................................................................................................ 8
Social:................................................................................................................... 8
Technological: ....................................................................................................... 9
Environmental: ...................................................................................................... 9
ECONOMIC: (Opportunities and threats for the Host Nation and Home Countries) ... 11
Opportunities ..................................................................................................... 12
Threats ............................................................................................................. 13
Political & Legal ................................................................................................ 15
Impact of Political and Legal Practices on Stakeholders.......................................... 16
Ethical ................................................................................................................ 18
Impact of Ethical Practices on Stakeholders .......................................................... 20
KEY TERMS: ............................................................................................................... 21
Chain (of a business) ............................................................................................. 23
1. Outlets of a business ....................................................................................... 23
2. Value Chain ..................................................................................................... 24
3. Chain of command ........................................................................................... 26
Avatar: ................................................................................................................... 27
Pressure groups .................................................................................................... 31
Recycling:.............................................................................................................. 34
Biodegradable ....................................................................................................... 36
SWOT ANALYSIS
STRENGHTS
- Global Presence- Factories in six continents, exploiting economies of scale.
- Various products in product portfolio- 30+ products, have added coffee
and water and planning to add healthy snacks --> risk bearing economies
of scale.
- Sustainable Initiatives- modernize factories and focusing on green
factories and manufacturing leading to positive impact on stakeholder.
(Especially pressure groups, govt. And consumers supporting green
businesses) Eco-friendly factories = upgrading to greener tech cuts costs
and boosts Myt’s reputation.
- Since it is a PLC, access to more funds; limited liability, easier to get loans
- Using social media for Promotion: Social media influencers lead to access
to a larger customer base, AI & avatars in ads = digital avatars can make
ads cheaper and more engaging.
Strengths of being a publicly held company:

- limited liability

Strengths of being a MNC

- Economies of scale – diversification

- Higher sales opportunity > they can enter new markets more easily because govt will
want such businesses to set up in their nations
- Support from governments in developing countries > subsidies
- Lower costs for raw materials and transportations costs reduce
Owns manufacturing factories on six continents

- Similar advantages as being an MNC

- Various economics of scale opportunities

Growth – internal and external

- Higher sales
- Benefit from Economies of scale --> avg. Cost of production goes down

Diversification, taking over

- Sales growth opportunity

 - Economies of scale
- Market share --> possibility of becoming market leader

Social media influencers as a promotional strategy

- New customer base

- Popularity > their followers become the brands potential customers

Modernizing and making its factories green

- CSR opportunity
- Economies of scale - (technical)
- Brand reputation
- Appreciation from pressure group and support from govt.

Exploring entering healthy snacks market

- Another form of diversification

- Sales can increase
- CSR
- Brand reputation

Computer generated avatar

- Helps them generate a USP > help them deal with foreign competition
- Popularity > eye catching > marketing opportunities
- Cost effective instead of working with social media influencers / celebrities

Reduce caffeine and sugar levels in its products

- CSR opportunity
- Reduce potential backlash from pressure groups
- Could be used as an advertising opportunity

Improve its CSR

- Improving brand reputation > chances of growth in sales

-
WEAKNESSES
- Health Concerns and Public Perception
Many of Myt’s drinks are high in sugar and caffeine, which contributes
to obesity, diabetes, and other health problems - CSR principles,
businesses that fail to address societal concerns may face reputational
damage, reduced customer trust, and potential legal issues, especially in
countries with strict health regulations.
- Dependency on High Sugar Products
- Myt’s core products are linked to health concerns. The heavy reliance on
these products could result in long-term sales decline as consumer
preferences shift towards healthier options. An over-reliance on cash cow
products from the 30 products in the portfolio (using the BCG Matrix)
may be unsustainable if the market for sugary drinks shrinks.
- Negative Impact of Artificial Sweeteners
Diet drinks with sugar substitutes, which are marketed as healthier
options, are also associated with health risks. This creates a dual problem
of negative publicity and challenges in creating genuinely healthier
alternatives. - Falling in the PLC could lead to stagnation or decline in
sales of diet drinks. And negative publicity from harmful products being
sold.
- Limited Expertise in Diversified Markets
The recent acquisitions of Lotssa Coffee (LC) and Honest Water (HW)
show a shift in strategy towards diversification. However, entering
markets like bottled water and coffee shops involves steep learning
curves and could dilute the company’s focus on its core business. -
Ansoff’s Matrix highlights that diversification is a high-risk strategy due
to unfamiliarity with new markets and products.
- Environmental Concerns
Myt’s factories, which are spread across six continents, likely contribute
to significant carbon emissions and environmental degradation. Although
modernization plans are announced, current operations may lead to
criticism and regulatory pressures. Weak environmental practices
contradict CSR strategies and may affect long-term sustainability.
- Potential Overextension
With over 30 products, global operations, and acquisitions, Myt risks
stretching its resources thin, leading to inefficiencies in production,
marketing, and supply chain management. As per economies of scale,
large-scale operations can lead to diseconomies of scale when
inefficiencies arise.
- Dependence on Social Media Influencers
- Heavy reliance on influencers for promotions could backfire if
influencers face controversies or fail to resonate with target audiences.
This could damage the brand's image and reduce marketing effectiveness.
According to promotion strategies in the marketing mix, over-
dependence on one promotional method limits the flexibility of a brand’s
marketing strategy.
- Brand Dilution Risk
By expanding into unrelated sectors like healthy snacks and bottled
water, Myt’s brand image as a drink manufacturer may weaken,
confusing customers about its core identity. Brand loyalty and clear
positioning are critical in competitive markets. Diversification could
dilute Myt’s brand equity.
- High capital costs= modernizing factories with better capital takes big
investments.
OPPORTUNITIES
Social:
1. Rising health consciousness of consumers – aligns with MYT’s switch to
make their drinks healthier - “explore entering the healthy snacks market”
- Consumers: More health-conscious choices, improved well-being.
- Investors: Growth potential in health-conscious markets, increased
profitability.
- Regulators: Ensures compliance with stricter health standards.
- Employees: Potential need for retraining in new product formulations.
- Suppliers: Shift towards sourcing healthier ingredients.
- Pressure Groups: Reduced criticism from health advocacy groups.

2. Convenience – with a rising fast paced capitalistic job market people prefer
convenient ready to go goods – this aligns with MYT’s product line
- Consumers: Quick, accessible food and beverage options.
- Retailers: Increased demand for grab-and-go products.
- Distributors: Need for a more efficient supply chain to meet demand.
- Employees: Potential job creation in production and logistics.

3. Diverse flavors – with being set up in 35 countries, MYT can utilize the
unique culture of every country to create new products and flavors. For
example, in India they can expand into chai, lassi etc
- Consumers: More culturally relevant and exciting choices.
- Marketing Teams: Opportunity for regional branding and targeted
campaigns.
- Suppliers: Higher demand for locally sourced ingredients.
- Employees: Need for R&D teams to innovate new flavors.
- Investors: Increased market expansion opportunities.
- Pressure Groups: Potential scrutiny over cultural appropriation or ethical
sourcing.
Technological:
1. Social Media Influence = leveraging influencers helps reach more customers
online.
2. Healthier drink production=new food tech can help Myt reduce sugar and
caffeine while keeping great taste.
3. Sustainable packaging= biodegradable bottles and cans appeal to eco-
conscious buyers.
4. Online sales growth = investing in e-commerce means more direct sales and
less reliance on stores.
5. Stakeholder impact:
• Customers: Get healthier drinks that still taste great and come in eco-
friendly packaging—good for them and the planet.
• Investors: More online sales and influencer marketing mean bigger
growth and better returns.
• Retailers & Distributors: Might see some changes as Myt focuses more
on selling directly online.
• Employees: Get to be part of cool innovations in food tech and
sustainability, making their work more exciting.
• Regulators: likely to support Myt’s push for healthier ingredients and
greener packaging.

Environmental:

1. Aluminum Cans – Infinitely Recyclable & Low Carbon Footprint

a. The recyclability of aluminum cans presents an opportunity to reduce
waste and minimize the carbon footprint, positioning aluminum as a
sustainable and eco-friendly packaging choice.
2. CBM (Circular Business Model) Implementation
a. Implementing a Circular Business Model (CBM) that focuses on the
three Rs (Reduce, Reuse, Recycle) provides an opportunity for greater
sustainability. It ensures that packaging materials are used efficiently,
and the company can lead in responsible production practices.
3. Glass Bottles – Reusability & Infinite Recycling
 a. Glass bottles, which can be reused and recycled infinitely, offer a
sustainable alternative. This promotes the idea of eco-conscious
packaging, catering to the growing demand for environmentally
friendly products.
4. Reduced Environmental Impact from Aluminum Cans
a. By using aluminum cans instead of plastic, the company can lower
environmental impact, align with eco-conscious consumers, and
improve brand image as an environmentally responsible company.

THREATS
Social:
1. Increasing consciousness – their previous product line may become
redundant due to consumers new philosophies. Additionally, with growing
methods of acquiring knowledge through social media – people will become
aware of the health risks of sugar free beverages
- Consumers: Shift towards natural and organic alternatives, potential loss
of trust.
- Investors: Need for reformulation, risk of declining sales.
- Regulators: Possible stricter labeling and health regulations.
- Employees: R&D teams required to innovate healthier alternatives.
- Suppliers: Shift in demand towards natural sweeteners.
- Pressure Groups: Likely to push for transparency in product ingredients.

2. Skepticism on computer generated marketing – people have extreme views

on using computer generated methods of marketing, majorly leaning against
it so it can affect consumer’s willingness to buy from MYT
- Consumers: May perceive the brand as inauthentic or manipulative.
- Marketing Teams: Need for a balance between AI automation and human-
driven marketing.
- Investors: Risk of public backlash affecting brand reputation and sales.
- Employees: Potential job displacement in marketing roles.
- Regulators: Possible future regulations on AI in advertising.
 - Pressure Groups: Ethical concerns over data privacy and consumer
manipulation.

3. Cultural concerns – with them being set up in multiple countries, some of

their standard products maybe against the consumer preferences and they may
have dietary restrictions which would stop them from buying from MYT.
- Consumers: Reduced appeal and exclusion due to dietary restrictions.
- Marketing Teams: Need for localized strategies and culturally adapted
branding.
- Product Development: R&D must create region-specific alternatives.
- Suppliers: Increased demand for diverse, culturally appropriate ingredients.
- Investors: Market expansion challenges if adaptations are not made.
- Pressure Groups: Criticism over lack of inclusivity and potential cultural
insensitivity.

Technological:
1. Health risks & regulations= more research on sugar and caffeine could lead
to stricter rules.
2. Cybersecurity issues= going digital increases the risk of data breaches.
3. Intense competition = rivals are also using AI, influencers, and online sales.
4. Supply chain struggles =tech upgrades need stable suppliers, which can be
risky.

Environmental:

1. Plastic Bottles – Non-Biodegradable & Environmental Harm

a. Plastic bottles contribute significantly to pollution, creating long-term
environmental harm. This is a threat as it can lead to ethical concerns,
negative public perception, and regulatory challenges related to plastic
waste.
2. Glass Bottles – High Carbon Footprint in Production
 a. While glass bottles have environmental benefits in terms of
recyclability, the energy-intensive production process and higher
carbon footprint could be a threat if not managed properly. The
environmental cost of production may counterbalance the sustainability
benefits.
3. Failure to Recycle Aluminum Cans
a. If aluminum cans are not properly recycled, they can become part of
municipal solid waste, contributing to environmental degradation. This
is a threat to the company's sustainability goals if recycling rates are not
monitored and improved.
ECONOMIC: (Opportunities and threats for the Host Nation and Home
Countries)
Opportunities
1. Job Creation and Economic Growth
• USA: Myt’s operations contribute to employment in manufacturing,
marketing, and distribution. Expansion into new product lines (e.g., bottled
water and coffee) can boost local job markets and encourage investment in
related industries.
• Other Countries: In nations where Myt operates factories, local employment
increases, reducing unemployment and stimulating consumer spending.
 Additionally, foreign direct investment (FDI) from Myt helps strengthen
industrial capabilities.
• Stronger government and public support in host countries due to employment
opportunities.
• Increased brand loyalty if seen as a job creator.

2. Trade and Export Benefits

• USA: As the headquarters and primary research hub, Myt’s exports generate
foreign revenue, improving the U.S. trade balance. The company’s global
reach strengthens American economic influence.
• Stable supply chains as supplier economies grow, ensuring long-term raw
material availability.
• Reduced production costs if economies of scale improve in supplier countries.
• Other Countries: Nations that export raw materials for beverage production
(e.g., sugar from Brazil, coffee from Colombia, or packaging materials from
Southeast Asia) benefit from increased demand, boosting their economies.

3. Technological Advancements and Infrastructure Development

• USA: Investments in factory modernization and green technology could
enhance efficiency in the U.S. manufacturing sector, setting a precedent for
sustainable industrial practices.
• Other Countries: Developing countries hosting Myt’s factories may see
improvements in infrastructure, including better supply chain networks and
technological advancements, which could benefit multiple industries.
• Improved operational efficiency reduces long-term costs
• Positive brand perception due to sustainability efforts.

Threats
1. Economic Inequality and Labor Exploitation
• USA: While high-level jobs (e.g., corporate, R&D) remain in the U.S., lower-
income jobs in factories may be outsourced, leading to potential job losses in
manufacturing sectors. This could contribute to regional economic disparity.
 • Other Countries: Developing economies may face labor exploitation concerns
if wages remain low in Myt’s factories. There is also the risk of economic
dependence on Myt, where job security is tied to the company’s presence.
• Public relations crises if accused of unfair labor practices.
• Risk of government scrutiny or legal action due to allegations of low wages
or poor factory conditions.

2. Government Regulations and Trade Barriers

• USA: The federal and state governments may impose stricter regulations on
sugar and caffeine levels, increasing compliance costs for beverage
companies and potentially leading to job cuts or factory closures.
• Other Countries: Some nations may impose tariffs or bans on sugary and
caffeinated drinks to curb obesity, limiting Myt’s market access and reducing
economic activity in the beverage sector. Additionally, pressure from
environmental regulations (e.g., plastic packaging laws) may require costly
adjustments for both domestic and multinational firms.
• Possible loss of market share if Myt’s reformulated products fail to attract
consumers.
• Need for alternative packaging solutions, increasing R&D expenses.
Political & Legal
Opportunities
1. Government Support for Sustainable Business Practices: Many
governments provide tax incentives, subsidies, and grants for companies
adopting eco-friendly production methods. Myt’s plan to modernize
factories and make them “green” could qualify for financial assistance.
Which in turn reduces operational costs and improved sustainability
efforts, strengthening CSR and public image.

2. Favorable Trade Agreements and Market Access: As a multinational

company, Myt benefits from free trade agreements (FTAs) that reduce
tariffs on imported/exported goods. Expanding into new markets with
lower trade barriers can increase global reach. Lower production costs,
higher profitability, and stronger international market presence.

3. Opportunities for Public-Private Partnerships (PPPs): Governments often

collaborate with private companies on sustainability initiatives, recycling
programs, and public health campaigns. Myt can partner with authorities
to promote its CSR efforts and social impact projects. Positive brand
reputation, increased consumer loyalty, and potential government
contracts.

Threats

1. Government Regulations on Caffeine and Sugar content in a beverage: Many

countries have introduced sugar taxes or caffeine regulations to combat
obesity and diabetes. Myt may face restrictions on the amount of sugar and
caffeine in its drinks. Affecting their overall revenues and causing issues in
production as they must reintroduce their products meeting government
regulations. This might also add cost of researching for development of new
healthier drinks.
 2. Tariffs or Political uncertainty: As a multinational company with factories
across six continents, Myt must comply with various trade agreements, tariffs,
and import/export regulations. Or wars that may occur due to political
conflicts causing supply shocks for the company. These regulations can
increase the cost of production for the company, making their product
unattractive for price-weary consumers.

3. Environmental Regulations: Myt PLC’s production processes by increasing

costs, disrupting supply chains, and introducing compliance risks. The shift
to eco-friendly materials requires costly R&D and higher production
expenses, as biodegradable plastics and recycled materials are often more
expensive than traditional alternatives. Additionally, sourcing sustainable
raw materials can be challenging, especially when global regulations vary,
forcing Myt to adapt packaging for different markets. Compliance with strict
carbon footprint targets may necessitate investments in renewable energy and
low-emission transportation, further raising operational costs. As a company
if they were to exceed their carbon limits, they would have to pay tax and or
purchase more carbon caps from other companies.
Impact of Political and Legal Practices on Stakeholders

- Investors & Shareholders: Myt’s commitment to sustainability and

government-backed incentives can drive long-term profitability and
enhance brand reputation, attracting ESG-focused investors. However,
compliance with stricter environmental regulations and research costs for
reformulating beverages due to sugar/caffeine restrictions may temporarily
reduce profit margins. Additionally, political uncertainties such as tariffs
and supply chain disruptions could increase operational expenses,
potentially affecting stock performance and dividends.

- Consumers: While Myt’s sustainability efforts and CSR initiatives can

strengthen brand loyalty and attract environmentally conscious consumers,
regulatory changes on sugar and caffeine content may impact product taste
and formulation. Reformulated beverages could face resistance from
existing customers who prefer the original taste, leading to possible
 revenue loss. Furthermore, increased production costs due to eco-friendly
packaging and compliance requirements might result in higher product
prices, making Myt’s beverages less accessible to price-sensitive
consumers.

- Suppliers & Partners: As Myt transitions to more sustainable production

methods, suppliers will face pressure to provide eco-friendly materials at
competitive prices, requiring their own investments in sustainability.
Global trade agreements and PPPs may create new business opportunities,
but political instability, tariffs, and stricter environmental regulations
could disrupt supply chains, leading to delays and increased costs.
Additionally, suppliers of traditional packaging materials or high-sugar
content ingredients may lose contracts if Myt shifts towards biodegradable
packaging and healthier formulations.
Ethical
Opportunities

1. Commitment to CSR and Ethical Practices:

a. Myt’s announced initiatives to improve corporate social responsibility
(CSR), such as factory modernization and reducing sugar and caffeine
levels, can strengthen its ethical branding. These actions demonstrate
accountability and align with growing consumer demand for companies
prioritizing health and sustainability.
b. Impact: Positive public image, stronger consumer trust, and potential
differentiation from competitors.
2. Alignment with Consumer Health Trends:
a. Reducing sugar and caffeine levels in beverages addresses ethical
concerns regarding Myt’s contribution to obesity and diabetes. Offering
healthier products improves ethical positioning and demonstrates a
commitment to public health.
b. Impact: Enhanced consumer loyalty, increased market share among
health-conscious demographics, and compliance with global health
advocacy.
3. Ethical Marketing Practices:
a. Leveraging transparency in advertising, such as clearly disclosing
sponsorships with social media influencers and responsibly utilizing
computer-generated avatars, ensures compliance with marketing ethics.
b. Impact: Builds credibility, avoids public backlash, and fosters a
positive relationship with regulators and advocacy groups.
4. Collaboration with NGOs and Local Communities:
a. Ethical partnerships in sustainability initiatives (e.g., recycling
programs, reducing plastic waste) can foster goodwill and generate
public-private collaborations.
b. Impact: Increased stakeholder engagement, reduced criticism from
environmental groups, and access to additional funding or support for
social impact projects.

Threats
1. Risk of Greenwashing Accusations:
a. If Myt’s CSR initiatives (e.g., modernizing factories, reducing
environmental impact) lack measurable outcomes or transparency, the
company could face allegations of greenwashing from pressure groups.
b. Impact: Damage to brand reputation, loss of consumer trust, and
heightened scrutiny from pressure groups and regulators.
2. Ethical Backlash Over Bottled Water Production:
a. Bottled water faces criticism due to its contribution to plastic pollution
and unsustainable water extraction practices. Without clear action to
adopt biodegradable packaging or sustainable water sourcing, Myt risks
being labeled as unethical.
b. Impact: Pressure from environmental groups, potential boycotts, and
reduced sales in eco-conscious markets.
3. Targeting Vulnerable Audiences Through Advertising:
a. The use of computer-generated avatars or social media influencers to
target younger demographics may raise concerns about manipulation
and the lack of authenticity.
b. Impact: Regulatory fines, loss of trust among consumers, and stricter
advertising regulations.
4. Ethical Dilemmas in Supply Chain Management:
a. Sourcing sustainable materials for packaging or ingredients may lead
to reliance on suppliers that exploit labor or operate unethically,
reflecting poorly on Myt’s CSR goals.
b. Impact: Damage to ethical standing, strained supplier relationships, and
increased supply chain costs.
5. Inconsistencies Across Markets:
a. Varying ethical expectations and cultural norms across Myt’s global
markets may create challenges in maintaining a consistent ethical
framework. For example, acceptable advertising practices or
sustainability expectations differ by region.
b. Impact: Risk of alienating specific consumer groups, legal challenges,
and additional compliance costs.
Impact of Ethical Practices on Stakeholders

• Consumers:
o Opportunities: Ethical practices like healthier products and
transparency in advertising build trust and loyalty. Support by even
willing to pay a higher price for the products.
o Threats: Perceived insincerity (e.g., greenwashing) could alienate
health-conscious or environmentally aware customers.
• Employees:
o Opportunities: Improved working conditions in modernized factories
foster a sense of pride and satisfaction.
o Threats: Automation during modernization could result in job losses,
leading to ethical concerns about employee welfare.
• Pressure Groups:
o Opportunities: Transparent CSR initiatives reduce criticism and create
collaboration opportunities.
o Threats: Environmental and health advocacy groups may escalate
campaigns if they perceive Myt’s efforts as insufficient.
• Regulators and Governments:
o Opportunities: Aligning with ethical practices can lead to partnerships
in sustainability and public health projects.
o Threats: Failure to meet ethical expectations could result in strict
KEY TERMS:

Social Media Influencer:

Meaning: Individuals with established credibility and large social media followings,
have power to affect the purchasing decisions of their audience due to authority,
knowledge, positions or relationship with followers, can be celebrities, industry
experts, bloggers, or even small influencers with smaller but engaged audiences.
Benefits:
- Expose brand to large, targeted audience quickly enhancing brand awareness
- Followers trust influencers’ opinions, translating into credibility and trust for
Myt
- Influencers create engaging content that resonates with their audience leading
to high interaction rates and increased sales
- Can be more cost-effective especially with micro-influencers
- Ability to reach niche audiences
Features:
- They share their personal experience with the products making endorsements
more genuine
- Reach broad audiences including demographics that may be hard to target
through traditional media
- Campaigns can be easily tailored to fit budgets and goals- for example,
content can be tailored according to goals like raising brand awareness, and
can also be presented as either posts, reels, or stories depending on the budget
and marketing objectives of the company
- Used by companies selling consumer goods like fashion and food, tech
companies to showcase new gadgets and software, travel and hospitality
companies, fitness and wellness related brands and e-commerce brands
- Advantageous to startups due to cost-effectiveness
Challenges:
 - Can be difficult to find influencers who align with brand image, whose
audience aligns with target market
- Over-commercialization (like if every reel is sponsored, or if many products
and brands are endorsed simultaneously) leads to loss of trust amongst
followers
- Difficult to measure direct impact and ROI of influencer marketing on sales –
while you can measure engagement and the enquiries received after a post, its
difficult to count how that's translated into sales
- Regulatory issues like compliance with advertising standards and disclosure
requirements can be complex and hard to monitor
- Influencer controversies can negatively impact brand image
- Time consuming to manage relationships and campaigns
In the mid-2000s, platforms like Facebook and Twitter began to gain popularity, and
influencers started to build their followings on these platforms. This inspired brands
to begin partnering with social media influencers to promote their products, and
influencer marketing was born in the form we know today.
Chain (of a business)

1. Outlets of a business
• A business chain refers to a series of retail stores, franchises, or outlets
operated under the same brand name and management. These outlets deliver
goods or services to customers in multiple locations.

Key Characteristics:

• Uniformity: Standardized branding, store layout, and customer service across

all outlets.
• Centralized Management: Strategic decisions (e.g., pricing, marketing) are
often made by headquarters to maintain consistency.
• Franchise Model: Chains may be owned by the parent company or franchised
to individuals who pay a fee to operate the outlet under the brand's name.

Where it is relevant:
• Operations Management: Standardizing processes across outlets ensures
quality.
• Marketing: Maintaining brand identity and consistent customer experience.
• Growth Strategies: Chains enable rapid market penetration and scalability.

Advantages:

1. Brand Recognition: Consistent branding across multiple outlets builds

customer trust and loyalty.
2. Scalability: Easy expansion to new markets with pre-established business
models.
3. Economies of Scale: Centralized operations (e.g., bulk purchasing) reduce
costs.
4. Standardization: Ensures uniform quality of products/services across all
outlets.
 5. Customer Convenience: Multiple locations make it easier for customers to
access the product or service.

Disadvantages:

1. High Initial Investment: Setting up multiple outlets requires significant capital.

2. Management Complexity: Managing operations across multiple locations can
be challenging.
3. Risk of Cannibalization: Outlets may compete with each other, reducing
overall profitability.
4. Cultural Challenges: Standardized approaches might not cater to local
preferences.
5. Dependence on Brand Reputation: A single outlet’s failure or bad press can
impact the entire chain.

2. Value Chain - A value chain is a series of consecutive steps that go into the creation
of a finished product, from its initial design to its arrival at a customer’s door. The chain
identifies each step in the process at which value is added, including the sourcing,
manufacturing, and marketing stages of its production.
Aspect Added Value Profit
Definition The value a business adds to its The financial gain after
inputs during production. deducting all costs (fixed and
variable) from revenue.
Formula Added Value = Selling Profit = Total Revenue − Total
Price−Cost of Inputs Costs
Scope Focuses only on the production Considers all costs, including
stage. operating, marketing, and
administrative expenses.
Purpose Measures the value contribution Measures the overall financial
of the production process. performance and viability of the
business.
Key Costs Includes only variable costs (e.g., Includes both variable and fixed
raw materials, direct labor). costs (e.g., rent, salaries, utilities,
etc.).
Perspective Related to operational efficiency Related to profitability and
and customer willingness to pay. financial sustainability.
Where it is relevant:

• Strategic Analysis: Helps identify areas where value can be added or costs
reduced.
• Competitive Advantage: Businesses focus on differentiating their value chain to
outperform competitors.
• Operations and Sustainability: Ensures efficient use of resources.

Advantages:

1. Improved Efficiency: Breaks down processes to identify inefficiencies and

optimize operations.
2. Cost Reduction: Helps reduce costs at each stage of production by streamlining
activities.
3. Enhanced Value Creation: Focuses on adding value at every step, improving
customer satisfaction.
4. Strategic Advantage: Differentiation in the value chain can help build a
competitive edge.
5. Better Resource Utilization: Ensures effective allocation of resources.

Disadvantages:

1. Complexity: Requires in-depth analysis and coordination across all stages of

production.
2. High Initial Costs: Implementing value chain improvements may need
significant investment in technology or training.
3. Dependency on Suppliers: A weak link in the chain (e.g., unreliable suppliers)
can disrupt the entire process.
4. Challenging in Dynamic Markets: Rapidly changing customer preferences may
require frequent adjustments to the value chain.
5. Lack of Flexibility: Over-optimization might reduce the ability to adapt to
unexpected changes.
3. Chain of command
The chain of command refers to the hierarchical structure in an organization that determines the
flow of authority and communication. It establishes who reports to whom within a business.

Key Features:

• Hierarchy: From top management to frontline employees.

• Span of Control:
o Wide Span: Fewer management levels, more subordinates per manager.
o Narrow Span: More management levels, fewer subordinates per manager.
• Authority & Responsibility: Each level has specific roles and responsibilities.

Where it is relevant:
- Decision-Making: Clear chain of command ensures accountability and smooth
communication.
- Organizational Structures: Types include:
- Flat Structure: Fewer levels of hierarchy, encouraging collaboration.
- Tall Structure: More levels, suitable for large organizations with defined roles.
- Leadership and Motivation: Clear reporting lines can improve productivity and
employee morale.

Advantages:

1. Clear Accountability: Employees understand their roles and responsibilities, leading to

fewer conflicts.
2. Efficient Decision-Making: Decisions flow systematically from higher to lower levels.
3. Organizational Clarity: Maintains order and structure within the organization.
4. Authority Distribution: Ensures that tasks are delegated appropriately.
5. Supports Leadership: Encourages a defined leadership hierarchy.

Disadvantages:

1. Communication Delays: Information may take time to pass through multiple levels,
causing inefficiencies.
2. Lack of Flexibility: A rigid chain of command can hinder quick decision-making.
3. Employee Demotivation: Employees at lower levels may feel excluded from decision-
making processes.
4. Potential for Miscommunication: Messages may become distorted as they move up or
down the hierarchy.
5. Costly for Tall Structures: Organizations with many levels of management may have
higher administrative costs.
Avatar:
Definition in this context: Using avatars/mascots for promotion. The usage of
computer generation implies AI but this will solely focus on usage in promotion.

How Avatars (Mascots and Virtual Avatars) Are Used in Business for Promotion:
Avatars, including mascots and virtual avatars, are increasingly used in business for
promotion due to their ability to create memorable, engaging, and relatable brand
experiences. Here’s how they are utilized:

1. Brand Identity and Recognition

Mascots as Brand Ambassadors: Mascots serve as the face of a brand, making it
more recognizable and relatable. Examples include the Michelin Man (Michelin) or
Tony the Tiger (Kellogg’s Frosted Flakes).
Virtual Avatars for Consistency: Virtual avatars can represent a brand across digital
platforms, ensuring a consistent and recognizable presence.
2. Enhancing Customer Engagement:
Interactive Experiences: Avatars can be used in chatbots, virtual assistants, or
interactive apps to engage customers in a friendly and approachable way.
Gamification: Businesses use avatars in games or apps to promote products,
encouraging users to interact with the brand in a fun and immersive way.
3. Social Media and Digital Marketing
Animated Content: Avatars are used in animated videos, GIFs, or memes to create
shareable and viral content.

Virtual Influencers: Some brands create or collaborate with virtual influencers (e.g.,
Lil Miquela) to promote products on platforms like Instagram or TikTok.
Personalized Marketing: Avatars can be customized to reflect a customer’s
preferences, creating a personalized shopping or browsing experience.
4. Virtual and Augmented Reality (VR/AR)
Virtual Showrooms: Avatars guide customers through virtual showrooms or product
demonstrations.
AR Filters: Brands use AR filters featuring their mascots or avatars on platforms like
Snapchat or Instagram to promote products.
5. Event Promotion and Experiences
Live Events: Mascots often appear at trade shows, conferences, or retail events to
attract attention and create a fun atmosphere.
Virtual Events: Avatars can host or participate in virtual events, webinars, or
metaverse experiences, making them more interactive and engaging.
6. Storytelling and Emotional Connection
Narratives: Avatars and mascots are often used in storytelling to humanize a brand
and create an emotional connection with the audience.
Cultural Relevance: Avatars can be designed to reflect cultural trends or values,
making the brand more relatable to specific audiences.
7. Product Representation
Product Packaging: Mascots are frequently featured on product packaging to make
it more appealing, especially to children.
Virtual Try-Ons: Avatars allow customers to virtually “try on” products like clothing,
makeup, or accessories.
8. Customer Support
Virtual Assistants: Avatars are used in customer service chatbots or virtual assistants
to provide a more engaging and human-like interaction.
9. Global Appeal
Localization: Avatars can be adapted to suit different cultural contexts, helping
brands connect with diverse audiences worldwide.
Language Flexibility: Virtual avatars can communicate in multiple languages,
making them ideal for global campaigns.
10. Innovation and Futurism
Metaverse Presence: Brands are creating avatars to establish a presence in the
metaverse, offering virtual goods, experiences, or events.

NFTs and Digital Collectibles: Avatars are being used as NFTs (non-fungible
tokens) or digital collectibles, creating new revenue streams and promotional
opportunities

Computer-generated avatars, also known as digital humans or AI avatars, are virtual

representations of people created using computer graphics and artificial intelligence. They are
increasingly being used in advertising to create engaging and personalized experiences for
consumers.

Example: Duolingo’s green owl

Advantages

• Cost-effective: Creating a CGI avatar is often cheaper than hiring a human actor or
model, especially for long-term campaigns.

• Versatility: Avatars can be customised to fit any brand or target audience, and their
appearance and behaviour can be easily modified. > can be flexible in-terms of adjusting
it for different cultures > connect back to having factories in six continents

• Availability: Avatars are always available and can work 24/7, making them ideal for
customer service and other tasks that require constant availability.

• Personalisation: AI-powered avatars can analyse user data to personalise interactions

and deliver tailored messages.
 • Innovation: Using avatars can make a brand appear modern and innovative, attracting
younger audiences which is important for a beverage industry who would ideally target a
younger demographic. > marketing opportunities
Disadvantages

• Lack of human touch: Some consumers may find avatars less relatable than real people,
as they lack genuine emotions and experiences.

• Technical challenges: Creating realistic and engaging avatars requires advanced

technology and expertise. > may need to hire specialised workers > can increase costs
Pressure groups

Political pressure groups are organizations set up to influence government policy-

making, legislation, and public opinion. They are also known as lobbying groups,
advocacy groups, special interest groups and protest groups. They don’t aim to run
for office themselves but work to get lawmakers or officials to make decisions that
help their cause, like better laws on the environment or workers' rights.

Reasons for creating Pressure Groups:

1.To Promote a Cause: Focus on issues like the environment, animal rights, or
workers' rights.
2.To Influence Government: Push for changes in laws or government decisions.
3.To Represent Specific Groups: Advocate for communities or minorities with
limited political voice.
4.To Protect Rights: Defend civil rights, equality, or freedom from injustice.
5.To Raise Awareness: Highlight issues that aren’t getting enough attention.

Impact of Pressure Groups:

1. Influence Laws: Pressure groups can help change or create new laws that
match their goals, like those that protect the environment or consumer rights.
2. Raise Awareness: They make people aware of important issues that may not
be in the spotlight, such as health, education, or climate change.
3. Hold Power to Account: Pressure groups can make sure that governments or
businesses act responsibly and follow rules that benefit the public.
4. Give a Voice to Minorities: These groups represent the needs of people who
might not have a say in government, ensuring their concerns are heard.
5. Shape Policies: They provide experts and useful information that can help
policymakers make better decisions.

Benefits of Pressure Groups:

 1. Support Democracy: They help make sure that different opinions and
concerns are considered in the decision-making process.
2. Encourage Participation: They motivate people to get involved in political
issues and speak out about things that matter to them.
3. Provide Expertise: Many pressure groups know a lot about certain topics and
can help lawmakers make better, more informed choices.
4. Advocate for the Public: They push for policies that benefit the general public,
like better healthcare, cleaner air, or safer products.
5. Push for Social Change: Pressure groups can create social change by raising
awareness and running campaigns, like civil rights movements or
environmental actions.

Features of Pressure Groups:

1. Well-Organized: Pressure groups have clear leadership and goals, and they
are often well-structured.
2. Focus on a Specific Issue: Most pressure groups focus on one main issue, like
animal rights, climate change, or workers’ wages.
3. Ways of Influencing: They influence decisions by lobbying (talking to
lawmakers), organizing protests, running awareness campaigns, or offering
expert advice.
4. Members or Supporters: They usually have members or supporters who back
their cause and help spread their message.
5. Non-Political: Most pressure groups don’t run for office or back a political
party; they just work to change specific issues or policies.
6. Government Relationships: They work with, or sometimes against,
government officials to get their message across and push for change.

Challenges of Pressure Groups:

1. Limited Money and Resources: Some pressure groups don’t have enough
money to compete with large, powerful organizations that might have more
resources.
2. Opposition from Powerful Groups: Big companies, politicians, or other
powerful groups may try to stop them from achieving their goals.
3. Negative Public Opinion: Sometimes people may not like the methods of
pressure groups, especially if they cause disruptions or seem too forceful.
4. Internal Disagreements: Pressure groups can face problems within their own
ranks if members disagree on goals or strategies.
5. Competing Groups: Other pressure groups with different goals might fight
against them, making it harder to win support for their cause.
6. Ethical Issues: Some pressure groups may face criticism if their funding or
methods seem questionable or unfair.
Recycling:
Definition of Recycling

Recycling is the process of collecting, processing, and reusing materials that would
otherwise be discarded as waste. For a non-alcoholic beverage producer using cans
(aluminum) and bottles (plastic or glass), recycling involves reprocessing these
materials into new packaging or other products to reduce environmental impact and
resource consumption. According to the circular business model, firms should focus
on the longevity of their product. Since certain products cannot be recycled, they
should be able to sustain their integrity for long periods of time to avoid disposing
them.

How Common Is Recycling Among Soft Drink Manufacturers?

• Many large beverage companies (e.g., Coca-Cola, PepsiCo) have

sustainability goals that include increasing the use of recycled materials in
their packaging.
• Some companies use 100% recycled aluminum for cans, while plastic bottle
recycling rates vary by region and policy.
• Governments and regulations (e.g., bottle deposit schemes) influence
recycling adoption, making it more common in some markets than others.
• Overall, while recycling is widely practiced, actual implementation varies
based on cost, consumer participation, and infrastructure.

Cost-Effectiveness of Recycling
• Aluminum Recycling – Highly cost-effective since recycling aluminum uses
95% less energy than producing new aluminum from raw materials.
• Plastic Bottle Recycling – Less cost-effective than aluminum due to
challenges in collecting, sorting, and reprocessing plastics. However,
advancements in recycling technology (e.g., chemical recycling) are
improving efficiency.
• Glass Recycling – Can be cost-effective but requires high energy input for
melting and reforming, making it less economically viable than aluminum
recycling.
 • Overall, aluminum is the most cost-effective material to recycle, while plastic
and glass recycling depend on regional policies and economic factors.

Efficiency of Recycling
• Aluminum: One of the most efficient materials to recycle, with a high
recovery rate (~75-90%) and minimal quality loss over multiple recycling
cycles. Glass bottles are more expensive due to their longevity while
aluminum cans are extremely cheap.
• Plastic (PET): Less efficient due to contamination issues and material
degradation, leading to downcycling (i.e., being turned into lower-quality
products).
• Glass: Efficient if properly sorted, but breakage and contamination reduce
recycling rates. However, glass can be infinitely recycled without quality loss.
Biodegradable

Biodegradability is the capability of a material to be broken down by living organisms, such as

bacteria, fungi, or water molds, and reabsorbed by the natural environment.

A product is compostable when at least 90% of its total mass biodegrades in a period of less than
6 months.

CEN has published several standards on biobased products, but there is no clarity around the part
of a plastic product that is entirely or partly derived from biomass. Currently there are no EU
sustainability criteria that apply to biobased plastics.

Bio based plastic – as recommendation

A bio-based plastic is completely or partially manufactured of renewable raw materials for

example wood, corn or sugar beet. Conventional, fossil-based plastic is made from raw oil and
natural gas.

Challenges

These include feedstock availability and the fact that several types of renewable feedstock either
compete with crops for food or feed production or encourage deforestation to create new farmland.
Other challenges include the higher cost of bio-plastics compared with cheap fossil-based
materials, the need to collect and separate organic waste streams, competition with bio-fuels, and
the complexity of communicating how bio-plastics benefit both society and the environment.

Advantages for businesses:

1. Waste reduction: The great problem of conventional plastic, together with the use of

renewable sources, is the generation of waste. On many occasions, we find containers that

are very difficult to dispose of because they are composed of different types of materials

or due to their size, etc. so under the right conditions biodegradable products eventually

disappear.

2. Csr and brand image: Consumers are becoming increasingly concerned about the
environment, so their demand is moving towards biodegradable products.
By using these types of products, you are demonstrating your commitment to nature, which often

has a positive impact on your brand’s image with consumers.