The competition has increased in today’s competitive world where every company wants to stay in the competitive market by providing high quality of services to the customers. Strategic information system is an effective tool that is helpful in attaining the objectives of the company in a sophisticated manner (Gaither and Austin, 2016). An information system is referred to as the tool that gives various facilities to handle the management services of the company. The main objective of this paper is to analyse the internal as well as an external factor that can impact the business. Various frameworks have been taken into consideration while elaborating the internal and external factor. Internal and external analyses are divided into two parts in this assignment in order to understand each aspect in a more effective manner. Eventually, the recommendations will be drawn to provide further development in the business about strategic information system so that the company can focus on those factors which can impact the productivity of the business (Doh and Quigley, 2014).
Part 1 (External Analysis)
Coca-Cola Amtail is the company that provides during to the customer. It is the largest distributors and bottlers of alcoholic and non-alcoholic ready to drink beverages in the Asia Pacific. There are more than 14000 employees are working in Australia, New Zealand,Fiji, Indonesia, Samoa and Papua New Guinea. The employee of the company is working as a team to deliver their best everyday for their customers, consumers, communities, shareholders,and partners who all advantage from their success. It has been evaluated that he Coca-colaAmatil has a history as a local manufacturer in which the main focus of the company is to provide food and beverage products (Svensson, Ferro, Hogevold, Padin and Sosa Varela, 2018). The company is operating their business across six countries, glowing track, developing possibilities and pushing boundaries for more than 100 years. The company was founded in 1904, as British Company Limited, the company started diversifying with the printing company and after that, it expanded their business into packaging in 1963.
The industry of Coca-Cola Amatil is the bottlers and distributors of non-alcoholic and alcoholic ready to drink beverages. The company is well known all over the world as the heritage of the company is rich as well as long, full of moments of growth along with challenges. The company has an international presence but local at heart. Beverages and food industry keep huge importance all over the world as it provides the refreshment to people for their special occasion. The main focus of the company is to satisfy the customer towards the quality of the products so that the trust of them can maintain on the industry. The company is invested in local economies in order to build portfolios elaborated by choice. The strength of the company is the intimate knowledge which is helpful for the company to drive incomparable stages of shared value for the customers and partners of the company. The company has more than 950,000 active customers in which the company wants to increase their number significantly. The products of the company are spring water, energy drinks, iced tea, spirits, flavored milk, carbonated soft drinks and many eatable products (Tripod, 2018).
General environmental analysis
Political/ legal factor
The role ofthe government in the political and legal terms of any country is huge as it influences the business through making changes in the rules, taxation policies and regulations in developing the business.It has been found that Australia is a political stable company in which the rate of corruption is low. The growth of the business can be done in an efficient manner with greater support of the Australia Government. The government of Australia is more focused towards adopted a policy so that the trade protectionism can be removed and the country can invite the open trade in the business environment. Coca-Cola Amatil is dealing in Food, Beverage & Tobacco in a number of countries and depicts itself in various kinds of political environment and system risks (Brownlee, Dmytriyev and Elias, 2017).
With respect to the legal factors, it is required for the company to consider each aspect of the legal framework of the country before implementing the business intothe specific country. It encompasses employment law, customer protection law, data protection and many more. It has been found that the laws of Australia are not robust enough which invite muchbusiness to operate their operations in Australia.
Economic factors of any country entail the inflation rate, GDP rate, saving rate and foreign exchange. The economic condition of Australia is strong that influence the business of Coca-colaAmatil in an efficient way. The main focus of the company is to handle indirectly with the other competitors at the international level. The GDP condition of the company is excellent that is helpful for the company to attain the benefits in the coming years (CCA, 2018).
The influence of the culture of the society has a significant impact on the company. It is apparent that the shared beliefs and attitudes of the customer keep huge value in making understand to the company in order to satisfy the customers. It has been evaluated that the Coca-Cola Amatil is the growing company in Australia that provides a high rate of employment to the country. There is a plenty of contribution of the company in increasing the living standards of the employees by providing effective wages.
The role of the technology in the food and beverage industry is huge as it helps in making smooth operation of the company. It has been analysed that the people of Australia want upper level of technology at the time of shopping. However, Coca-Cola Amatil is able to provide high technology services to the customer in order to make satisfy the customers. It has been analyzed that the growing concern for the company is online shopping as number of competitors of the company provide high technology to the customers for the purpose to get attention of the customers towards their products.
Environmental/ global factor
It has been found that environmental standards of every country are different which should be taken into consideration by the company in a sophisticated manner. Different companies in different countries have not the same laws, for instance, there is a diverse legal responsibility clause with respect to the environmental disaster in Texas and Florida.
Demographic and physical factor
It has been analyzed that the population of Australia is growing rapidly and expected to amplify in near future. The food and beverage industry will grow definitively due to the growth of the population. The country has a significant policy to save and protect the environment that is why the government of the country has made the code of standards for the packaging system (Popescu and Otelea, 2015).
Porter’s five forces
The bargaining power of the suppliers is moderate for company in Australia due to huge range of accessibility of suppliers for the raw materials of the company.
The bargaining power of the customers of the Coca-Cola Amatil company is high due to huge availability of the non-alcoholic beverages from a number of companies. The company can face the issue in building profit in this industry due to t existence of a number of suppliers of the same products to the customers.
However, it is not an easy task to open enter new markets in the easiest way as a small company face numerous challenges at the time of entering into new markets. the threat of new entrants is low for Coca-ColaAmatil company but it is required for the company to be attentive while satisfying the customers because new competitors generate products at a lower price to get the attention of the customers (Sullivan, Ortez and Mission, 2017).
The substitute products are gourmet coffee and energy drinks for the products of Coca-Cola Amatil Company. it has been found that the inhabitants of Australia are favored in the flavour of non-alcoholic drinks.
Rivalry among competitors
It has been analyzed that the company encounters a firm sense of competition due to the existence of a number of competitors in the industry such as Nestle Waters France, PepsiCo and many more.
It has been evaluated that Coca-Cola Amatil has espoused effective strategies so that they can retain the high level of position in the food and beverage industry in Australia. With the help of this tool, the company has focused on the major competitor of the company and made strategies according to their procedure to satisfy the customers. The company has a strategic group that entails the sparkling non-alcoholic, still- non-alcoholic, energy, alcoholic, hot beverages and food. There are various competitors of the company but the majors are Nestle and PepsiCo Inc. however, Coca-Cola Amatil is following the strategies within the operation after considering the strategies of these two companies for the purpose of understanding in a critical manner the cause for famous in the commercial beverages industry (Banks, Vera, Pathak and Ballard, 2016). The capabilities of the relevant firms are providing a high quality of services to the customer by keeping consideration of the price, brand image,and quality in order to retain the customers. This kind of activities increases the competition in the industry. The company has applied the strategy to focus on competitors’ activity to satisfy the customers and according to them change the policy. It has been found in the context of the threats with the help of the financial report that every non-alcoholic drink manufacturing company involving tea, sports, energy drinks and coffee are adopted the traditional models of competitor analysis for the purpose of gaining better understanding about the competitive environment of the industry (Mohamed and Omwenga, 2015).
Opportunities and threats
· Continuous growth of drinking beverages
· Preference of youth customers
· Reduced primary cost of producing beverages (Pearlson, Saunders and Galletta, 2016).
· Expansion of the business all over the world
· Option to enlarge products for other segments
· Cultural barriers
· Preference of sports and energy drinks
· Intense competition (Powell and Gard, 2015).
· Interest rates variations
· Increased rate of epidemic obesity (Gertner and Rifkin, 2018).
Part 2 (Internal Analysis)
CCA has effective tangible as well as intangible resources. The products, bottling partners and factories of the company are major resources that help the company to make sure flexibility as well a quality. The consistency of the firm is remarkable along with that the brand equity and the human capital of t eh company create huge value for the company for the long term. These are valuable resources of the company that is able to build the sustainable competitive advantages. The tangible and intangible resources of the company are mentioned below:
The company has more than 14000 employees all over the branch of the company in different countries and it is possible due to the huge support of the human resource department. Along with that, the company is providing attractive incentive plan and other perks to the employee of the company so that they can remain in the company for the long period with efficient manner (Carroll, 2016).
It is another resource of the company which is the part of the tangible resource. It has been found that the financial condition of the company is strong which helps the company to sustain in the competitive market and to produce new products in the market. It pretends that the company has invested in innovating new products for getting a good reputation in the real estate industry.
Technology plays a significant role in providing high quality and instant services to the customer. Coca-Cola Amatil focuses on the latest technology in which the company has developed many products such as energy drinks and hot beverages to the customer (Rani, 2014).
Intangible resources of the company can be elaborated as the total of all intangible assets such as goodwill of the company. The good will of the company is good in the view of outsiders as number of marketers invest in the company without any doubt which helps them to increase efficiency of the company.
Core competencies of the company
The core competency of CCA is brand building for which the company is known throughout the world. The image of the company is respectable which took many years to build. The company’s product is more valuable from generation to generation. Their products are not favorite among many individuals along with that it has developed into a household name. The brand name and symbol of the company is more attractive that able to fetch the attention of the customer towards the product. It has been found that this company is a cash cow in the food and beverage industry. The company is more reliable due to its core competencies which would be helpful for the company to attain the competitive advantages for the long period (Eccles and Serafeim, 2015).
Capability analysis of Coca-Cola
The major dynamic capability of CCA is a huge investment in marketing. It has been found that the company has invested around $3.33 billion in advertising so that they can spread the brand image of the company all over the world. The marketing programs of the company are developed with the thinking of the ‘think globally, act locally’ which amplify the more customer awareness and product appeal for customers. The company has the capability to differentiate the strategies of the company as per the developed marketing and developing marketing. It has been analyzed that the company owns around 275 bottling company and provide their products in around 200 countries. The brand value, brand recognition,and brand loyalty are the major capabilities of the company that help in retaining the customer (Sauerbronn, Barros and Faria, 2018).
Suitable information system
The role of the information system is great in the company that helps in making sure that the smart information is gathered from the number of supply and process. SAP (System Application Product) should be used in the company as it is the information system which is the largest fourth part huge programming system. The main feature of this programming is to provide instant information about the products to the company so that the inventory management keep all information in an effective manner. It has been found that all information technology can be accomplished in one SAP. It gives an instant reply to all kind of questions regarding financials, logistic appropriations and producing department (Stark, 2015).
Evaluation of the system and recommendations
This information system is more valuable for the company as it would be helpful in giving instant information about ongoing activities to the management so that they can take appropriate action as per the requirement. It has been analyzed that SAP functions entail five functions of FICO-financial &control, PP-production planning, MM-material management, SD- sales & distribution and HR- human resource.
It has been recommended to the company to focus on the system information that helps in bringing instant information about the company. The strategies of the company should be more effective so that the company can attain more competitive advantages in the comparison of other competitors. It is recommended to the company to appoint an expert who should be able to do the time to time research regarding the amendments in the strategies of the company and bring changes as per the demand of the customers.
From the above discussion, it can be concluded that CCA is a well known company in all over the world due to its effective strategies to compete with their competitors. The report has been made on the internal and external analysis of the company which would be helpful for the company to increase the better understanding of those factors. The main advantageous factor of the company is strong financial condition of the company by which it is able to invent new products which become the reason for the attraction to the customers towards the latest services.
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