Jones Sodas Organizational Theory and Design - Paper Example

2021-08-25 17:11:31
3 pages
561 words
University/College: 
Boston College
Type of paper: 
Case study
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Jones Soda has a unique organizational purpose that deviates from the traditional operational strategy. The company is committed to creating a brand that is different from its competitors by deviating from the conventional rules that guide new entrants to an existing market (Draft & Armstrong, 2015). The company started in 1994 and found that the beverage market was full of competitors. Therefore, Jones Soda adopted a strategy that would differentiate it in the market as a novice firm. It refrained from copying its predecessors like Pepsi and Coca Cola in various ways. For instance, it ignored the consumers opinion of its products and implemented the idea brought forwarded by its founder to make it the brand it is today (Draft & Armstrong, 2015).

Company Challenges

Competition is the biggest challenge that Jones Soda has faced over the years. The existence of Coca Cola and Pepsi has always threatened it expansion and sales. However, it has managed to overcome the threat by differentiating its organizational strategy from that of its competitors. Health issues associated with sugary beverages have always kept the company at its toes. It, therefore, focused on producing beverages in low-content bottles as a measure to protect the health of the consumer (Draft & Armstrong, 2015).

Porters Competitive Strategy

All the five concepts of Porters competitive model are applicable to this business. Jones Soda is constantly battling the threats posed by new entrants through remaining committed to its goals and working by its peculiar operational strategy. However, there exists competitive rivalry in the domestic market posed by Coca Cola and Pepsi. There is also a huge customer base for the Jones Soda products. The products are relatively cheap thus promoting the buyers purchasing power. Currently, Jones Soda does not depend on suppliers for the concentrate (Draft & Armstrong, 2015). However, its suppliers for packaging material and fruits are consistent and powerful. There is currently no substitution threat for Jones Soda in the Canadian market.

Miles and Snow Typology

With regards to the Miles and Snow typology, Jones Soda is a prospector company. Its strategy is anchored in the exploration of new and peculiar ideas that have not been identified by its competitors.

Four Approaches to Effectiveness Values

Jones Soda places a lot of emphasis on human resources. It, for instance, values the input of its web designer to the development of the company in its early stages (Draft & Armstrong, 2015). In the open systems emphasis, the company capitalizes on the sub-goal of flexibility. In the management of internal process, Jones Soda has a strong information management system that drives its decision-making (Draft & Armstrong, 2015). Finally, the company has a clear future plan that will see it succeed in the international market.

Recommendations Based on the Balanced Scorecard

There are four recommended actions that will see the company move to its next level of prosperity. These are prudent financial management, focus on customer satisfaction, regular auditing of business process, and employee motivation. The company should track its financial performance by using quarterly net income. Jones Soda can get a glimpse of its customer satisfaction levels by using periodic consumer surveys. The company should also track its order fulfillment and make improvements as necessary. Finally, the company should measure the employee turnover rates to identify the gaps and achievements in staff motivation.

 

ReferenceDraft, R. L., & Armstrong, A. (2015). Organizational Theory & Design (3rd Canadian ed.). Toronto, ON: Nelson Education Ltd.

 

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