International structureAt present Vit Hit is in a simpleorganizational structure. Ian O’Rourke, a successful business man, was invitedto join Vit Hit in 2007 and “The arrival of O’Rourke heralded a massive companyrebrand and a streamlined, simple organizational structure.” (Blair-White et al 2017) When we comparestructure of Vit Hit to the Mintzberg models from Mintzberg, H. (1981), wecan see that it fits into the Simple structure. The company has nospecialization or separate departments.
It is under direct Supervision fromO’Rourke and Lavin. It is a small and relatively new company with a centralizedfunctional structure. From looking at Greiner,L.( 1998) and the 5 phases ofevolution, Vit Hit is in phase 1 the ‘Phase of Creativity’ Since the companyonly 17 years old, it is still quite young and for it to grow the company overheads must strive to create ways to improve and innovate the company to furtherits success and developmentTherebranding of the company played a major role in its internationalization. Theoriginal name ‘Vitz’ had stronger connotations with being German, despite itbeing an Irish company, than being a Vitamin drink which would have impactedits international expansion due to possible conflicts between demographics. Thecompany changed the look of the bottle too, as studies found that consumerspreferred wider bottles and since labelling has a lot to do with the success ofa company they redesigned the bottle to the current model that can be seen inshops today.
AsVit Hit are expanding globally, they have been strategic in how they do so. Thecompany treat each demographic differently as they know that each market reactsdifferently. Vit Hit have apredominantly young, youthful, energetic target market which is why the companyaims to establish themselves in countries that fit this demographic, such asthe US or the UK. However, the company have decided to expand in stages whichis a good idea as it is much harder for a small, relatively new company toenter multiple foreign markets all at the same time. The Vit Hit case study, Blair-White et al (2017),reported that Vit hit was trialed in Virginia via PepsiCo and this then lead tothe company gaining establishment in the US market and they then decided toexpand state by state using regional and local distributors to introduce theirproducts into the US. This then lead to more international deals as the firmcontinued to grow in popularity. According to the Independent.ie.
(2017) Vit Hit signed a 17.5-million-eurodeal with the Honickman Group which is a US and the firm stated that “Partnering with the Honickman Group gives VIT HIT instant credibility in the United States, adding to the continuedgrowth of VIT HIT’s worldwide success across 16+ countries internationally.” ( Release, 2017) which is proof that Vit Hithas gained a strong foothold in the US market as they had hoped to do.The executives of Vit Hit always have a plan of action and haveset goals for themselves that are realistic and achievable if they go aboutexpanding in the right ways.
They are very adamant about staying trueto their aims “But we want the right backer. Thereis no point being wowed by a big name and big money if the soul of the brandcreeps away. Our aim is to make thisIrish-born drink company into a global brand,” said O’Rourke(Independent.
ie. 2018). Vit Hit was aiming toestablish itself in the UK market, and they succeeded in doing so as “Vit Hitwas officially the fastest growing soft drink in Ireland and the 15th biggestselling soft drink nationally. Vit Hit now sells over 17 million bottlesper year in 8 countries and in the UK, it is the market leader in health drinksin both Boots and Tesco.” (Independent.ie.2016).
The company had achieved a lot, but they still wanted to accomplish moreand thein 2017, the firm grew even more and set their eyes on a new goal asLavin said “We are actuallythe fastest-growing health drink in Sainsbury’s with organic growth there lastyear of 35pc. We hope to be the market leader in the UK in this segment in thenext 24 months.” (Independent.ie.2017).A major step for the health drink providerwas signing with Pallas Foods, as this lead to Vit Hit products being stockedin canteens and cafeterias. This brought about a lot of publicity as itencouraged people to see it as a healthy drink for example, if workers saw thattheir employers trust this drink to stock, then it must be good as canteens andsuch usually have a limited stock range that will ensure the best foremployees.
Toconclude, by analyzing Vit Hit and the Food and beverage industry it is inusing tools such as Greiners theory of evolution and Mintzberg’s structuralmodels, it becomes clear that Vit Hit is a simple structured company and itsover heads, Lavin and O’Rourke, are still amid finding creative and innovativeways of making the products the produces a successFromusing Porters 5 Forces Competition and Buyer power is quite high whereassupplier power, threat of entrants and threat of substitution are all quitelow. This is close to the ideal scenario as it is good for a firm ifcompetition, threat of new entrants and are weak while …. However, given thatVit Hits industry is so broad and the fact that there is no other industry likeit and considering that Vit Hit is one of the strongest competitors in theindustry the company is in a very good position in the industry.ThePESTLE analysis revealed that the most dominant influences for the Food andbeverage industry are Politic, Economic and Social.
These factors majorlyinfluence if the firm will be successful, as the state of the economydetermines how much disposable income people have and the likes of social mediahave a lot of influence in society today and the politics behind the industrycan make or break it as the government can control taxes and subsidies forexporting which both have big consequences and effects on the firms in theindustry VitHit is becoming a better-known brand every day. The firm’s internationalizationstrategy has been to treat each demographic differently and to expand in stagesby taking one demographic at a time. The executives were also very careful withtheir expansion plans as they chose to target countries with a more youthfuldemographic. All this combined was strategic and clever due to Vit Hitinitially being such a small and new company and it has allowed them to enterinto large markets such as the US and UK. As the company is now much morepowerful it can now expand quicker and more easily.