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Overview of Coca Cola Amatil's business activities

Question:

Discuss About The Business Activities Of Coca Cola Amatil?

The report talks about the business operation of Coca Cola Amatil Company. It explains that how the company is maintaining the best brand in soft drinks and beverage products across the world. It describes the core values, mission, vision and corporate strategies of the company. The report also describes the leadership style and organizational culture of the company. It explains that how the company overcomes on its competitors in the market.

Coca Cola is one of the biggest brand and product around the world. It is an independent and self-governing company which is dealing in a variety of beverage and soft drinks. Its headquarter is located in Australia and the company also operates its business in South Korea, Papua New Guinea, New Zealand, Indonesia, Samoa, and Fiji. It is the primary manufacturer and producer of Coca Cola products which mainly focuses on the Asia specific countries. The business of the company is based on snacks foods and alcoholic beverages. It is listed on the Australian securities exchange in 1972. Alison Watkins is the CEO and managing director of the company and David Gonski is the board chairman of the company (Bailey & Peetz, 2015). 

  • The mission of the company is to revive and refresh the world in body, mind, and spirit.
  • To inspire and encourage the brands, moments, brands of the company.
  • To build and develop good values of the company (Maharaj & Reddy, 2013).

The main objective of the company is to introduce and create a variety of beverage brands which satisfy the consumer’s needs, wants and desires. The company wants to develop an effective and strong network of the suppliers and customers to enhance and encourage their values. The other objective of the company is to gain high success and growth with achieving the organizational goals and objectives. It also wants to maximize the profit with maintaining the long term sustainability in the market. The company’s core competencies consist a distribution system, administrative control, and strong brand. The core competencies refer to the specific set of knowledge, skills, and experience which are a need in the organization in order to achieve goals and objectives of the company. Leadership, integrity, sustainability, passion, diversity, and accountability are the core values of the company. The core values and competencies are the uniqueness of the company (Burrows, Pursey & Stanwell, 2015).

The company is using the various corporate strategies in order to meet the long term goals and objectives with maintaining sustainability growth in the organization. The corporate strategies of the company have been discussed below.

Marketing strategies: Coca Cola Amatil uses the various corporate strategies to identify and analyze the taste and preferences of the consumers. Through the marketing strategies, the company can know the various choices of consumers related to beverages and soft drinks products. (Kumarasiri, 2015).

Core values and competencies of Coca Cola Amatil

Promotion strategy: The Company focuses on various promotion strategies to promote and increase the demand for the products in the market. In this way, the company can make a good position in the market.

Growth strategies: The Company is using various kinds of growth strategies to increase and expand the growth and success of the organization. It is investing the large amount on its business operations and activities to achieve the long term vision and mission of the organization. It also uses the various diversification strategies to expand its business in the market.

Stability strategies: If Coca Cola Amatil feels that growth strategies are not viable and feasible, then company uses the stability strategies. Mainly, this strategy focuses on the current position and supply chain and quality control of the company.

Focus strategy: The company uses focus strategy in differentiation and low-cost dimensions.  It also focuses on the cost of the beverage products to increase the profit of the company.

Leadership strategy: The organization mainly focuses on the effective leadership strategy to gain the competitive advantage in the market. The low-cost leadership strategies are one the biggest business level strategies that the company has been using since its incorporation.

Product differentiation strategy: The Company uses the products differentiation strategy to differentiate its product from the competitors’ product. Many times, it seems that the competitive companies produce the similar products. Therefore, the organisation faces many difficulties due to similar products so the company uses the product differentiation strategy (Blanding, 2011).

The growth strategy is the biggest achievement for the company and it is giving the largest competitive and viable edge to the company. This strategy helps to achieve the organizational goals and objectives effectively. Now it is assumed that all the core values, competencies and corporate strategies play a significant role in success and growth of the company (Mialon et al, 2016).

The two criticisms of the company have been discussed below.

  • Water management is a serious issue in the company. Therefore, the company is facing several problems due to water shortage and scarcity. On the other hand, people have also blamed on the company for mixing pesticides in the water to remove bacteria and clear the containments. This is affecting the health of the people. They are suffering from various diseases due to the carbonated and soft drinks. It also affects the revenue and profit of the company. Due to the water scarcity, the company is not providing the healthy soft drinks and beverages to customers. Carbonated beverages are the reason of obesity and overweight. It also affects the behavior of the customers. Various communities and customers are affecting the water scarcity. The company should improve the management of water to gain competitive advantages (Okur-Berberoglu, 2014).
  • The other criticism is sustainability and corporate social responsibilities. The company is facing many challenges due to poor sustainability and corporate social responsibilities. The company is not following all the compliance, rules, and norms of the business. It is affecting the behavior of stakeholders. The corporate social responsibility ensures the compliance with national and international norms, values and ethical standards. The company is not maintaining sustainability among the employees. It also affects the business operation of the company. Now it is assumed that the company should resolve these issues to achieve long term as well as short term goals and objectives (Pallegedara & Warren, 2014).

Coca Cola Amatil is the leading producer and retailer of the soft drinks and beverage product across the world. The company is popular for the carbonated drinks and beverage products. Here, SWOT analysis shows the strengths, weaknesses, potential opportunities and threats of the company. The SWOT analysis is discussed below. 

  • It is the best well known and popular brand across the world in terms of profits, revenue, brand image and stock market performance.
  • It serves its products in more than 200 countries, therefore; it maintains the broad distribution and marketing network in the world.
  • The company uses the strong promotion and advertising strategy to gain the competitive advantage globally.
  • Coca Cola Amatil is focusing on corporate social reasonability programs like water recycling, packaging, and energy conservation. This helps to build the strong and effective corporate image of the company (Hassan, Amos & Abubakar, 2014).
  • The company mainly focuses on some limited products like sprite, coke, and Fanta. Therefore, it does not keep the focus on the healthy beverages and soft drinks.
  • The product portfolio of the company is not properly diversified, it only focuses on the carbonated drinks. It affects the business activities of the company.
  • It has 8 billion dollars of debt in the market which is also another weakness of the company.
  • Product diversification is another negative point of the company and it affects the performance of the organization.
  • The global market is available for the production of soft drink and beverage products.
  • The company can expand its business to produce the new beverage and soft drinks products in the market.
  • Entry into packaged food is another way to expand the market globally.
  • Diversification is another opportunity for the company. Through diversification, the company can improve the quality of beverage and soft drink products.
  • In today’s world, there are many products which are not acceptable in the market due to product portfolio of Coca Cola Amatil. Therefore, the company should focus on the marketing of these products (Gelbrich & Roschk, 2011).
  • Sugar based beverage and drinks lead to many health issues and problems. It is the serious and major threat to the company.
  • More than 60% revenue and profit come from overseas markets. Weak and poor currency performance of other countries will affect the sales of the company.
  • Water resources will also become the major threat to the company.
  • RC cola and Pepsi are giving rigid competition in the market.
  • The market of developed countries are already soaked and saturated (Randeberg &Selvik, 2014).

PESTLE analysis evaluates and identifies changes in the market caused by the various external factors like political, economic , socio-cultural, technological, legal and environmental factors. They are discussed below.

Corporate strategies of Coca Cola Amatil

Political factors: These factors affect the business of the company adversely. Political factors which are influenced the company operations are such as changes in legal regulation, non-alcoholic business area and political condition in the international market.

Economic factors: Economic recession, inflation rate, and interest may affect the company negatively. Therefore, the company analyses the economic factors.

Sociocultural factors: These factors also affect the business operation of the company. The sociocultural factors include the customers’ tastes, preferences, desires, values, customs, and culture of the countries (Crittenden et al, 2011).

Technological factors: The technological factors include the packaging design, new factories, new equipment and new machines. All these factors may have a negative impact on the business activities of the company.

Legal factors: The rules, policies, regulations which are imposed by the government also influence the business of the company.

Environmental factors: The water problems, pesticides and climate changes also affect the market of the company. Therefore, the company should analyze the environmental factors (Allen, Singh & Powell, 2013).

Coca Cola Amatil is one of the biggest companies in soft drink and beverage products across the world. The company provides excellent corporate culture to employees for doing work efficiently. The company culture includes the seven core values such as leadership, diversity, collaboration, passion, integrity, accountability and quality. Alison Watkins is the CEO of the company. She maintains cooperation and collaboration within the organization. Further, the company uses excellent leadership style in the organization. The leadership styles of the company are discussed below (Handayati, Simatupang & Sridharan, 2011).

Team leadership style: The Company uses the team leadership style to create and maintain a good position in the future. CEO inspires and motivates employees through team leadership style. Employees maintain teamwork and coordination among the various departments with the help of this leadership style.

Cross cultural leadership: The Company is expanding its business day by day, therefore, the company needs a large number of employees to perform the work. People come from different background and they follow different cultures. Thus, the company provides cross cultural training to employees.

Autocratic leadership style: In this leadership style, managers strictly focus and monitor the activities of employees. In this way, it improves the efficiency and productivity of employees.  Employees learn many things from their superior and they gain knowledge and experience from them (Klettner, Clarke & Boersma, 2014).

Democratic leadership style: In this style, managers involve employees in the decision-making process. It enhances and encourages the morale and satisfaction level of the employees. In democratic leadership style, managers delegate authorities and power towards subordinates to achieve the mission and vision of the company.

SWOT analysis of Coca Cola Amatil

Coaching leadership style: In this style, superiors improve the skills and knowledge of the employees. Thus superiors and managers motivate the workers to perform their duties and responsibilities.

Now it is assumed that organizational culture of the company is very excellent. CEO provides a good working environment to employees for doing work. She ensures the employee's security and safety and provides good wages to employees. On the other hand, leadership styles also play a significant role in success and growth of the company (Jones & Reid, 2010).

Conclusion

Coca Cola Amatil is one of the biggest brands in beverage and soft drinks across the world. It deals in various products like soft drinks, beverages, coffee, tea, juice, energy drinks, flavored milk and sports drinks. Now it is concluded that the company is operating its business activities across the world. The company is maintaining the effective core values and competencies, mission, vision and corporate strategies to gain competitive advantage. Therefore, the company should maintain the good and effective position in the market.

References

Allen, D.E., Singh, A.K. and Powell, R., 2013. Analysing the return distributions of Australian stocks: the CAPM, factor models and quantile regressions. Global Business and Economics Review, 15(1), pp.88-109.

Bailey, J. and Peetz, D., 2015. Australian unions and collective bargaining in 2014. Journal of Industrial Relations, 57(3), pp.401-421.

Blanding, M., 2011. The Coke machine: The dirty truth behind the world's favorite soft drink. Penguin.

Burrows, T.L., Pursey, K.M. and Stanwell, P., 2015. The Application of Magnetic Resonance Spectroscopy to Investigate the Effect of a Commercial Energy Drink.

Crittenden, V.L., Crittenden, W.F., Ferrell, L.K., Ferrell, O.C. and Pinney, C.C., 2011. Market-oriented sustainability: a conceptual framework and propositions. Journal of the Academy of Marketing Science, 39(1), pp.71-85.

Gelbrich, K. and Roschk, H., 2011. A meta-analysis of organizational complaint handling and customer responses. Journal of Service Research, 14(1), pp.24-43.

Handayati, Y., Simatupang, T.M. and Sridharan, R., 2011. An analysis of collaboration between Coca-Cola and Carrefour using drama theory. International Journal of Value Chain Management, 5(1), pp.1-24.

Hassan, D.N., Amos, A.A. and Abubakar, O.A., 2014. An evaluation of marketing strategies undertaken by Coca Cola Company as a multinational corporation in Nigeria. Journal of Business and Management, 3(2), pp.5-10.

Jones, S.C. and Reid, A., 2010. Marketing to children and teens on Australian food company web sites. Young Consumers, 11(1), pp.57-66.

Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145-165.

Kumarasiri, J., 2015. Use of management accounting practices in carbon emission management: Evidence from Australian companies. Journal of Contemporary Issues in Business and Government, The, 21(1), p.5.

Maharaj, B. and Reddy, M., 2013. To Clear or Not: Examination of Mergers and Acquisition Cases from Small Economies. International Journal of Economics and Finance, 5(2), p.125.

Mialon, M., Swinburn, B., Allender, S. and Sacks, G., 2016. Systematic examination of publicly-available information reveals the diverse and extensive corporate political activity of the food industry in Australia. BMC public health, 16(1), p.283.

Okur-Berberoglu, A., 2014. Exploitation of environmental resources and rural communities by global food companies. Geography, Environment, Sustainability, 7(4), pp.54-67.

Pallegedara, D. and Warren, M., 2014. Evaluating Australian social media policies in relation to the issue of information disclosure. ACIS.

Randeberg, M. and Selvik, H., 2014. A study of tax minimization strategies in multinational companies: with focus on The Coca-Cola company and IKEA(Master's thesis).

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