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PESTEL Analysis

Discuss about the Analysing Impact of Packaging Design.

Strategic planning is a significant step for every organization in order to settle business in a new market as well as to keep it going in existing market. There are challenges which are faced by a company which has to be overcome by it (Bakker, 2014). So, a justification of those challenges with a solution to strategic management has been given in this course of study. Cola Amatil is a very well known brand for ready to drink beverages and in context to the same company this research is being conducted. Overall organizational study with proper direct and indirect impacts is to be conducted in this research for Cola Amatil in Australia. Innovation strategy which has been adopted by the company is also justified in this report with a specification to various sections of the company and products.

Cola Amatil is a very well renowned business corporation that deals in nonalcoholic, alcoholic, fruit etc. ready to made drinks which captures a very big market worldwide. Hence, the positioning of company is very strong and commendable that it covers a huge market share(Barney and Hesterly, 2010). The customers are using its products very often which are becoming a crucial point for company to success. It aims to provide best of the services it can to its customers in the field of beverages and drinks. The company is continuously cooperating with changes which are happening inside and outside the business which is affecting the business. But still, there are some threats which are still there for the company and its operations which may impact the business and has to be addressed. PESTEL analysis to recognize the potential threats for Cola Amatil is illustrated below:

When entering a new market the political condition of that nation has to be addressed this is very significant for the company so as to have a complete hold on the market (Buckingham, 2011). There are the new set of rules which are to be followed and encountered by an organization and likewise it has to be addressed by Cola Amatil while making its strategies for further functioning.

The market plays a very important role in the success of a business as it justifies the potential power of the customers to spend on a product (Carroll, Primo and Richter, 2014). This helps in setting up the price of a product and an approximate justification for the revenue which will be earned by the company. Hence, if the economy of a country is not in compliment with the company’s product’s price than it may have a huge impact on business success.

Current Growth of the Company

The factors related to culture, religion, people, race, values etc. are very important for a business to consider while operating (Cortez, Tu, Anh, Ng and Vegafria, 2014). The people of the country have to be valued for what they are and practices of the business must follow in the same manner so that no person in the society is affected. If it goes in another direction than it may cause positioning issue as well as acceptance issue for the company's product in a market.

This is the most rapidly changing section which keeps on developing frequently within the very short period of time. Hence, a company has to cope up with essential designing and technological up gradation(Daspit, Chrisman, Sharma, Pearson and Long, 2017)n wherever required in the operating system of business. Hence, if the company fails to coordinate with this factor it will face the problem so it has to make sure that this factor is addressed.

There are problems related to the natural environment as well as artificial which is created by people. A company has to cope up with both through its operations so that the inside and outside surroundings do not get affected by the activities of the company (Dhariyal, Negi and Kothari, 2017). A government of the nation also makes some rules to invest in the environmental restructuring which also has to be followed in a proper manner.

The set of rules which is being set by the constitution of the country has to be followed in business practices otherwise the company can be held by the legal bodies. So, for a smooth functioning of the business, this factor has to be taken into account. This is the significant factor for the company while making policies of a company which must have all of the rules associated with this factor (Djenontin, Foli and Zulu, 2018). Hence, a company has to make sure this factor is addressed properly while making the strategies so that there are no future problems.

Further, threats in the industry are very crucial which are mostly related to substitution problem. There are so many similar products on the market which are same as Cola Amatil so there is a threat of switching to the customers. Hence, a company needs to have proper competitive advantage strategy with innovation so as to have an edge over the market.

Cola Amatil is performing very well in the market worldwide with a huge share of market earning the profit in billions. Hence, the company has several product lines and sections in which it operates very keenly (Duffy, 2011). A current position of the company in market is very high and all of the sections of food items are performing in their best way. The better justification for this factor can be given through BCG matrix which will help the study to have a better understanding of products and their performance. Same is given below:

BCG Matrix

Products which have the low market share and high market growth opportunity which is the food products of Cola Amatil which is still on the verge to improve its share of the market. There are huge chances of innovation for the product so that there are more customers inclined to a product (GABRIEL and ALINA, 2018).

The best performing products of a company and in context to Cola Amatil the best performing products are nonalcoholic drinks which are having huge market share and growth in the present and future of the company.

High market share but the growth of product is very limited in this case the chances of innovation are very low. Hence in context with Cola Amatil water-related products fall into this category which has a limited scope of growth and development.

Hot beverages of Cola Amatil falls into this category as the product is not performing so well as well as it has the low market share (Wambui, 2018). This has to be improved over time by the company to have a stability in this section.

There is also another theory which can be helpful for further option study of the company which is McKinsey GE frameworks which suggest the investments options and the risk factors associated with it at different stages. So, in context to strategy the factors which have to be taken care while investing in forming the strategy for the company and its activities. Investment in the strategies for the development of sections of a company which is not performing properly which will help in improvement and development. There are three stages in this matrix and they are suggestions onto where to invest and not to invest. Likewise while making appropriate strategies there has to be certain preparation for which portion of the organization requires more time and effort to be invested. It is an approach for a multi-businesses company to divide its financial resources in such a manner among its various divisions (GABRIEL and ALINA, 2018). This helps in the management of various divisions just like Cola Amatil which has diverse business operations and products which need proper investment procedures. So, this matrix can help the company to invest in the various section like hot beverages which have to be fostered in order to reach the targeted growth and such that food and other beverages so as to have proper growth of each division and products.

McKinsey GE Frameworks

Coca-cola Amatil is currently operating the business in a very good manner and further, the business is working on various sections of the society and people to help them to grow and develop. The innovation strategy which company is using to excel rate the growth of a business is in the form of diversity in product and new drinks which are added to the list of products. The packaging of the product is also another attractive source of business through which business is innovating its products on a very high scale. It has a huge section of customers and the share of the market is also very high for the company in the market (Kusyk, Uyar and Sahin, 2018). Since it has an established business company is performing very well. The company is pursuing an opportunity which is inclined to innovate the product of company and people. It has launched a program for people to showcase their talent by giving them a platform to perform necessary skills which people are having. This way company is performing properly through which it is giving back to the society. The growth vehicle choice which company has chosen is simple and product-oriented which inclines the product development and divestment of the business. The growth of its nonalcoholic ready to drink beverages is performing very well and there is furthermore investment in the same (Lumbroso and Ramsbottom, 2018).

A company is investing its financial resources in such a manner that it invests in the sections of business properly and wherever the most of the investment is required. The development methodology which organization is utilizing to exceed expectations rate the development of business is as assorted variety in item and new beverages which are added to the rundown of items (Nurcholis and Satria, 2017). The bundling of the item is additionally another appealing wellspring of business through which business is advancing its items on a high scale. It has a colossal segment of clients and the offer of a market is additionally high for the organization in the market. Since it has a setup business organization is performing extremely well. The organization is seeking an opportunity which is slanted to advance the result of organization and individuals. It has propelled a program for individuals to grandstand their ability by giving them a stage to perform vital aptitudes which individuals are having (Shah-Hosseini, Safari and Homayouni, 2018). Along these lines, an organization is performing appropriately through which it is offering back to the general public. There are many more innovation opportunities in terms of this section which company can use further to develop and grow. It also focuses on the development of brand at a very high rate and the brand value of the company is very high that it faces fewer problems in the positioning of the product. Considering it as the strong point of the company. The brand is performing very well in further business associations and launches in products (Sung and Park, 2018).


In the limelight of the above-executed analysis, it has been inferred that The value of a brand and its various divisions is a conclusion of this project. The performance of Coca-cola Amatil and its various products is also obtained in this report.  A deep analysis of the company’s PESTEL is being a result of this course of study. Further, the business and further opportunities available to it is also obtained in this report. Innovative strategy and various other procedures upon which company is working have also been concluded in this report. It is very important for a business to have the proper structural investment in the business which is also been a result of this assignment.


Bakker, D. (2014) Vertical Brand Portfolio Management: Strategies for Integrated Brand Management Between Manufacturers and Retailers. Springer.

Barney, J.B. and Hesterly, W.S. (2010) Strategic management and competitive advantage: Concepts. Englewood Cliffs, NJ: Prentice hall.

Buckingham, I.P. (2011) What’s Employee Engagement?. In Brand Champions (pp. 37-74). Palgrave Macmillan UK.

Carroll, R.J., Primo, D.M. and Richter, B.K. (2014) January. Using Item Response Theory to Improve Measurement in Strategic Management: An Application to CSR. In Academy of Management Proceedings (Vol. 2014, No. 1, p. 12215). Academy of Management.

Cortez, M.A., Tu, N.T., Van Anh, D., Ng, B.Z. and Vegafria, E. (2014) Fast fashion quadrangle: An analysis. Academy of Marketing Studies Journal, 18(1), p.1.

Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G. (2017) A strategic management perspective of the family firm: Past trends, new insights, and future directions. Journal of Managerial Issues, 29(1), p.6.

Dhariyal, D., Negi, M.S. and Kothari, H.C. (2017) Analysing Impact of Packaging Design on Impulsive Buying using Regression Model. International Journal of Engineering and Management Research (IJEMR), 7(1), pp.200-205.

Djenontin, I.N.S., Foli, S. and Zulu, L.C. (2018) Revisiting the Factors Shaping Outcomes for Forest and Landscape Restoration in Sub-Saharan Africa: A Way Forward for Policy, Practice and Research. Sustainability, 10(4), p.906.

Duffy, S. (2011) September. A community creating their own rules on foursquare. In Mobile and Online Social Networks (MOSN), 2011 Workshop on (pp. 7-12). IEEE

GABRIEL, C.G. and ALINA, C.I. (2018) The concept of managerial strategy and their components in the sporting organization (Note I). Studia Universitatis Babes-Bolyai, Educatio Artis Gymnasticae, 63(1).

Kusyk, J., Uyar, M.U. and Sahin, C.S. (2018) Survey on evolutionary computation methods for cybersecurity of mobile ad hoc networks. Evolutionary Intelligence, pp.1-23.

Lumbroso, D. and Ramsbottom, D. (2018) Flood Risk Management in the United Kingdom: Putting Climate Change Adaptation Into Practice in the Thames Estuary. In Resilience(pp. 79-87).

Nurcholis, M.A. and Satria, A. (2017) Implementasi Kebijakan Strategi dengan Balanced Scorecard pada Kementerian Kelautan dan Perikanan. Jurnal Ekonomi dan Kebijakan Publik, 8(2), pp.71-86..

Shah-Hosseini, R., Safari, A. and Homayouni, S. (2018) March. Estimation of Natural Hazard Damages through the Fusion of Change Maps Obtained from Optical and Radar Earth Observations. In Multidisciplinary Digital Publishing Institute Proceedings (Vol. 2, No. 7, p. 365).

Sung, T.E. and Park, H.W. (2018) The adequacy of volatility for the elaboration of technology valuation based on real options. Technology Analysis & Strategic Management, pp.1-24.

Wambui, L.N. (2018) Impact of organizational culture on organizational commitment. Strategic Journal of Business & Change Management, 5(2).

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