Business Management Key Themes (DP IB Business Management): Revision Note

Internal growth

• Myt expanded its product range from a single root beer to a portfolio of over 30 drinks

External growth

• The company used acquisitions to diversify, taking over Lotssa Coffee (LC) and Honest Water (HW)

Diversification

• Myt is expanding beyond soft drinks into coffee, bottled water, and potentially healthy snacks

Use of social media influencers

• Myt engages influencers to promote its drinks, a common modern digital marketing strategy

Advertising innovations

• The company is exploring computer-generated avatars in advertising, showing a shift towards AI and virtual marketing

Obesity and diabetes concerns

• Myt’s products are high in sugar and caffeine, leading to criticism over health risks

Sugar substitutes and health risks

• Even diet drinks have raised health concerns, affecting consumer perception

Reducing sugar and caffeine levels

• The company is responding to public health concerns by modifying its products

Environmental sustainability

• Plans to modernise factories and make them green suggest a focus on reducing the company’s environmental impact

Social responsibility

• Myt's CSR improvements may involve ethical sourcing, employee well-being, and responding to health concerns

Bottled water industry Issues

• The acquisition of Honest Water raises sustainability concerns, as bottled water production often contributes to plastic waste and water resource depletion

Public limited company (PLC)

• Myt is a publicly held company, meaning it has shareholders and must focus on profitability while balancing stakeholder interests

Healthier options

• Consumers are demanding healthier drinks and snacks, leading Myt to explore healthy snacks and reformulate its drinks

Coffee market expansion

• The acquisition of Lotssa Coffee indicates a shift towards the growing coffee culture and demand for premium beverages

Factory modernisation

• Myt is investing in green technology to reduce its environmental footprint

AI and digital marketing

• The use of avatars in advertisements reflects a move towards automation and AI-driven marketing

Operations methods

• Myt produces over 30 drinks, meaning it may use batch or mass production methods

• If Myt expands into healthy snacks, it must decide between job, batch, or flow production

Location

• Myt owns factories on six continents, so it must carefully decide where to locate new production facilities

• It may also consider outsourcing, offshoring, reshoring, or insourcing to improve efficiency

Break-even analysis

• Myt’s investment in modernisation and new product lines requires careful financial planning

• Break-even analysis can help Myt determine if reducing sugar and caffeine or entering the healthy snacks market will be profitable

Circular business models

• Myt’s plan to make factories greener fits into a circular business model, reducing waste and improving sustainability

• Investing in biodegradable packaging and recycling initiatives aligns with CSR goals