Red Bull Company Management Analysis

Currently, over 68 billion cans have been sold since its manufacture. The company has a large staff. According to the 2017 figures, it employs 11,886 employees. It is a dominant player in the energy drinks industry. The company’s main markets are the USA and Western Europe. The new markets have also led to the increase in revenue. The company adopts an aggressive business approach, moving from its traditional markets in Europe and venturing into the new markets. The good advertisements have given it an edge over its competitors. In countries such as Turkey, Red Bull has registered very good sales. The company’s successes can also be attributed to its good management. Corporate Social Responsibility is important to any business. First, it helps to create a good image for the company.

Consumers are able to connect with the company through the activities Corporate Responsibility activities that they engage in. Second, it acts as an advertisement strategy. CSR activities offer the company great publicity. The company’s corporate social responsibility is also in the protection of the environment where it undertakes all measures to ensure that its activities are eco-friendly. The company has a policy of minimizing carbon emissions. The production policies from the production of the cans, the recycling and even the cooling system all work towards the goal of environmental conservation. So far, it has ensured that it makes use of renewable sources of energy in its production, therefore, preventing the depletion of the world’s natural resources. Marketing strategy Red Bull company has distinguished itself as an energy drink manufacturer through its marketing strategies.

Advertisement slogans such as “Red Bull gives you wings” show the targeted market the benefits of the product. The slogan has become like a trademark. In 2017 the company signed a deal with First Derivatives company to supply its Kx technology to its Formula 1 team in what the media referred to as ‘giving Red Bulls more wings’ (McDonnell 2018)2. The slogan’s stimulating quality makes it attractive to young people. It has tailored its marketing strategy to relate to the target market. In 2009, the company has also founded a team in Leipzig town in Saxony region in Germany. The company’s efforts to rename the club as Red Bull Leipzig were however unsuccessful forcing it to settle for the name RB Leipzig. The club has had tremendous success since it was founded by Red Bull, becoming the first German club to be in Bundesliga since 2009.

Through the sponsorship of clubs, the company has developed into a sporting brand (Kunz et al. The company has also been a major sponsor in the Formula 1 motor races sponsoring some of the participants (Duncan 2018)4. Red Bull has a unique logo that it puts in all its adverts. It also uses catchy colors to create a thrill for the viewers. Red Bull’s video adverts are effective because young people are always looking for adrenaline-filled videos. The videos, therefore, engage the consumers and create a lasting picture in their minds. Most of the videos that the company’s marketers have produced have always gone viral therefore marketing the energy drink. A sustainable business focusses on all the key resources which are human resource, natural resource, and financial capital.

Additionally, a sustainable company should not just focus on the immediate profits but must consider how their actions will impact in the long term. The areas of sustainability include environmental issues. It has been argued that the continued use of non-renewable sources of energy and the release of greenhouse emissions into the environment are a threat to the ecosystem. The manufacturing process involves the use of energy. The culture is a personification of its founder, Mateschitz. It differs from the bureaucratic culture that characterizes traditional companies. According to Mateschitz, marketing requires a clear mind and bright eyes. This implies the ability to be aggressive and to be open to undertaking new opportunities and challenges. He, for instance, rejected a market survey recommendation that advised him against launching an energy drink (Pangarka & Agarwal 2013)5.

The cans are also designed in a manner that allows coolers to hold many cans and therefore the company spends fewer resources on energy for coolers. Environmental standards Environmental conservation is key to the ecosystem. Companies have an obligation to ensure that their activities conform to the requirements of environmental conservation. Red Bull company recognizes that given the high capacity of its production it may cause a significant impact on the environment. It, therefore, puts in place all the possible measures to ensure that it has the least negative impact on the environment. Littering of the environment is one of the challenges that face environmental conservation. The company promotes environmental conservation by using renewable sources of energy. The company also recycling its cans.

Recycling of the cans is energy efficient as compared to manufacturing new cans. The company’s cans are manufactured using aluminum. The recycling of the cans helps to conserve the environment while also reducing the amount of carbon that is released into the environment. The company mainly uses ships and rail as a means of transport and trucks are only used where necessary. The packaging of the drinks makes it easy to transport many cans at a go compared to glass bottles or pet bottles. It saves on the back and forth transportation that occurs when fewer bottles have to be transported at a given time. The transport system also lowers carbon emission since trucks emit more carbon compared to trains and ships.

Taurine is an amino acid that naturally occurs in the body. A normal human has about 70 times as much taurine as that contained in a can of Red Bull. The B-group vitamins help to maintain the normal body function. Particularly they contribute to the proper functioning of the brain and the nervous system. The vitamins also assist the body in metabolism. The products ability to keep the consumer alert also makes it ideal for business people who always want to be attentive whenever they are going about their business. If one is feeling mentally fatigued, all they need to do is to take a short break and to grab a can of Red Bull. The stimulant in the drink helps to maintain clear mental activity.

Ethics Ethics refers to the well-founded standards of right and wrong. It is integral to the sustainable development of a company. The ethical issue that has faced the company is with regards to advertising. The company was accused of false advertising (Stein 2014 p. The plaintiff, in this case, claimed that the advert that the drink gave its consumers the wings to fly was false. It was established at trial that the advert was exaggerated. The ethical question, in this case, is whether an exaggeration in an advert amounts to unethical behavior? Generally, the company observes ethical behavior which has helped it to distinguish itself from its competitors. The company also has low levels of bureaucracy which allow any employee with an innovative idea to bring it on board.

The structure has allowed constant improvement in terms of the product quality. The products are approved in all the 171 countries that the company operates in. The company employs many people to undertake the safety of the product before it is released into the market. It also educates the consumers on the effects of the use of caffeine and Red Bull in general. The target market is always the sports people and those who engage in other tiresome tasks that require them to replenish their energy. The company packages its products in aluminum cans complete with its logo. The cans are portable, easy to hold and durable. Despite the can being good, it is cost effective to produce. That means that packaging does not cut the company’s revenue.

The company has associated itself with sports, athletes, and heroes. It has therefore distinguished itself as a reliable energizer capable of supporting high octane activities. Sources strategy Sources strategy refers to identifying the issues affecting an organization and developing measures on how to address them. In involves all aspects of the organization starting with the employees. First establish what motivates the employees. It involves outsourcing a logistics company. Red Bull outsources the supply chain services. In Italy, for instance, the company uses XPO Logistics. It also has supply chain teams in different countries. The use of logistics companies has been successful in the company business. Price fluctuations can be due to different factors such as inflations in the market or changes in the tax regimes.

The fluctuations disrupt sales and can lead to losses to the company. Second, logistical expediency. Companies often focus on saving costs in their supply chain management. Cost saving measures can compromise of the quality of the supply chain. It is important for any company to brand itself just like Red Bull has branded itself as a sports promoter. The branding that a company chooses should be in line with the product it manufactures and the target market. Red Bull is also an example of a company that uses sustainable development measures. In ensuring the proper management of the company, it should also take into consideration the environmental protection. Reference List Duncan, P. ’ The Irish Times. March 31, 2018. Pangarkar, N. , and Agarwal, M.