1. Briefly trace the development and growth of the organisation from its beginnings to the present through the application of corporate strategies – what types of strategies have these been?
2. There have been many criticisms of the business practices that company has pursued over the years. Describe TWO of these practices and outline the outcomes.
3. Perform an environmental analysis for the involvement of the organisation in the context of the industry it operates in – what are the main opportunities & threats?
4. Describe the organisational culture or leadership style within the organization
The report talks about the organizational structure of the Coca Cola Amatil Company. It explains how the company has become a strong leader in food and beverage industry. It explains the core values, competencies, and marketing strategies of the company. The report explores the mission, vision, objectives and function of the company. It explains that how the company is using leadership styles in real business. The report analyzes and evaluates the porter five forces model and PESTLE analysis of the company.
The Coca Cola Amatil is one of the largest companies in soft drink and beverage industry across the world. It is executing and operating its business activities in six countries such as Indonesia, New Zealand, Australia, Fiji, Papua New Guinea and Samoa. It deals in various soft drink and beverage products. The products include spring water, soft drink, energy drink, fruits and vegetable snacks, flavored milk, tea, coffee and other products. The company delivers a large number of non-alcoholic and sparkling products. The company mainly focuses on the snacks food and soft drinks. The objective of the company is to achieve long term as well as short term goals. The other purpose of the company is to maximize the profits and maintains the sustainable growth in the beverage and soft drink industry (Setyawati & Santoso, 2012). It also wants to create the excellent values and culture within the organization. The company uses the different bottling partners in order to focus and control on beverage marketing. The company uses effective promotion and marketing strategies in order to achieve the association long term goals and objectives. The vision of the company is to create a place where people can perform the task and duties effectively. The company also wants to create the beverage brands that satisfy the consumers’ needs, desires and requirements. The company is improving the productivity and efficiency of the employees. Leadership, integrity, accountability, passion, and diversity are the main core values of the company (Fairgray, Tamásy & Le Heron, 2012). The past strategies of the company are discussed below.
- The company has invested money in the brand, advertising, and beverage portfolio. In this way, the company is expanding its business globally.
- The company was focusing on the core business model to enhance the beverage products.
- The company made cost control strategies to increase the revenue and profit of the company.
- The company was using the effective leadership strategies to enhance the capabilities and potential of employees. Effective leadership strategies also encourage the motivation and team work within the organization (Cortese, 2009).
The corporate strategies of the company are discussed below.
Diversification strategy: This strategy eliminates and reduces the potential risk of products. The company uses this strategy to expand and explore the beverage and soft drink products. The company is dealing in various beverage products in over 200 countries across the world. Through diversification strategy, the company is expanding its business day by day (Brennan et al, 2011).
Criticisms in Coca Cola Amatil Company
Generic strategies: The Company is using various kinds of generic strategies to gain the competitive advantages in the market. The company can take cost leadership benefits and differentiation advantages with the help of generic strategies.
Marketing mix strategy: The Company is using the marketing mix strategy to achieve the organizational goals and objectives. In marketing mix, the company is focused on the product, price, promotion, and place of the products. In this way, the company can take information of the beverage products.
Growth strategies: the company mainly focuses on the growth strategies to boost the profit of the company. Therefore, the company is investing a large amount to enhance the business activities.
Promotion strategy: The Company is using the various promotion strategies to increase the demand for the products in the market (Ouppara & Sy, 2012).
Differentiation strategy: The Company is also focused on the differentiation strategy to differentiate the products in various countries. The company is producing the products in different flavor with the help of differentiation strategy.
Now it is assumed that the company is using effective and excellent corporate strategies to maintain the sustainability in the market. The corporate strategies also help to gain organization mission and vision (Blanding, 2011).
The company is facing the many challenges during the business activities. The two criticisms are discussed below.
Corporate social responsibilities: The corporate social responsibilities are the business techniques and approaches that contribute to sustainable growth and development by providing social, economic and environmental benefits to its stakeholders. It is an instrument where business ensures and monitors its compliance with the ethical standards and national and international norms and rules. The company is facing various environmental issues which affect the business and performance of the employees. Water scarcity is the main key challenge in the beverage industry. Therefore, the company is not being able to follow and perform the corporate social responsibilities. Thus, the stakeholders of the company face many difficulties and they are not being able to take the environmental and economic benefits. It affects the business of the company. The communities are also affected by the environmental issues (Allen, Singh & Powell, 2013).
Sustainability: Sustainability is another controversy in Coca Cola Amatil Company which affects the employees’ performance adversely. The company has appointed a committee to maintain sustainability in the company. But now a day’s, board is not working properly and effective way. The company is not performing corporate governance and business ethics. The board is not monitoring on the environmental, social and economic sustainability of the company. The employees also face many difficulties in the organization due to insufficient human resource management. Employees do extra work in the company but the company does not pay incentives and bonus to employees. Therefore, it affects the performance of employees. It increases the employee turnover in the company which affects the business of the company. The company should focus on the sustainability to gain the various advantages within the organization (Okur-Berberoglu, 2014).
Porter five forces analysis
The company uses porter five forces to understand the competitive forces in the market. The Coca Cola Amatil is one of the biggest companies in the food and beverage industry. The porter five forces are discussed below.
- Threats of new entrants: The new entrants in food and beverage industry influence the prices and cost of the company. Therefore, the company should manage and evaluate all these barriers and challenges to overcome on the competitors. The company can tackle the threats of new entrants in the market. The company can produce new and innovative products to gain the competitive benefits in the market. The company can develop the new capabilities of employees to enhance their efficiency and productivity. It should build the economies of scale to reduce the fixed cost per unit (Lewis, 2008).
- Bargaining power of suppliers:The bargaining power of suppliers also affects the business of the company. It also reduces the overall revenue and profit of the company. The company should build the effective supply chain system in the organization to overcome this barrier. The company should develop the dedicated and passionate suppliers whose business activities depends upon the organization. In this way, the company can maintain the strong position in the market.
- Bargaining power of buyers:Buyers affect the business and trade of the company. They want to buy the products at minimum price. It decreases the profit and revenue of the company. The company should produce a large base of consumers then it will reduce the bargaining power of buyers and it will also give an opportunity to the organization to increase its sales and revenue.
- Threats of substitute products and services:The threats of substitute products and services affect the profit of the company. Sometimes, the companies produce the similar products, therefore, it influences the business activities of other company. The Coca Cola Amatil Company should make an effective strategy to reduce this barrier. The company should focus on the services of the company. It should understand the basic needs and desires of the consumers. It must increase the switching cost for the consumers (Jones & Reid, 2010).
- Rivalry/ competition among the existing competitors:If the competition exists among the players in the market then it will reduce the profit of the company. Therefore, the company should maintain collaboration and cooperation with competitors to increase and enhance the market size.
The macro environment affects the business activities of the company. Therefore, the PESTLE analysis can be done by the company to evaluate and analyze the external factors. The PESTLE includes the following factors such as:
Political factors: The political and potential factors affect the environment of the company. The political factors include the internal laws, taxation requirements and environmental laws and accounting standards. Therefore, the company should monitor the political factors.
Economic factors: Economic factors like inflation rate, exchange rates, recession, unemployment levels and personal saving rate influence the business and marketing activities of the company. Thus, the company should analyze the economic factors to growth and success of the company (Cuganesan, Guthrie &Ward, 2010).
The socio-culture factors also influence the sustainability and growth of the company. The socio-culture factors include customs, core values, attitude and lifestyle of the people. The company should evaluate the social-culture factors to achieve long term as well as short term goals.
Technological factors: Emerging technologies also influence the organization business and trade activities. The company should create new opportunities for new products and services. The company should focus on the new technologies and activities of competitors (Oplatka & Hemsley-Brown, 2012).
Environmental factors: The environmental factors also exist in the external environment. The company should monitor the environmental laws and regulations which are imposed by the government.
Legal factors: The Company should monitors on the legal factors which influence the success of the company (Klimes et al, 2011).
The Coca Cola Company is a manufacturer, marketer, leader and retailer of the beverages and soft drinks products. The company is providing more than 500 brands in all over 200 countries across the world. The organizational culture of the company is very effective and excellent. The company provides a favorable working environment to employees to perform the task and duties. For providing effective organizational culture, the company uses different types of organizational structures (Handayati, Simatupang & Sridharan, 2011). They are such as role culture, power culture, task culture, person culture. The Coca Cola Company uses the role culture. In role culture, the company defines the various types of roles and responsibilities of employees to carry out the business activities. The company divides its function into the various department such as production, marketing, accounts and human resource department. The directors, managers, supervisors, and technicians play a significant role in the Coca Cola Amatil organizational culture. On the other hand, the company is using effective leadership style to attract and retain the customers in the market. The company creates an effective position in the market through the excellent leadership styles. The company wants to accelerate the growth and success in the future with the help of effective organizational culture and leadership style (Mialon et al, 2016).
Alison Watkins is the CEO and group managing director of the company. The company has an effective leadership team to formulate various rules and policies. Martyn Roberts is the group financial officer of the company. CEO and team members of the company are focusing on the three core capabilities like consumer marketing, franchise leadership, and commercial leadership. A management style is an effective method of leadership which is used by the managers and leaders of the company. The management team of the company motivates and inspires the employees in order to meet goals and objectives (Fairgray et al, 2012). The management styles of Coca Cola Amatil Company are discussed below.
- Democratic: In leadership style, leaders and managers share their knowledge and information with the group members to enhance their capabilities and potentials. In democratic style, employees, managers, and supervisors are involved in decision-making process. The managers receive feedback to enhance efficiency and performance of the employees (Bailey & Peetz, 2015).
- Autocratic: In autocratic leadership style, the managers and top management keep close and strict control over the employees. They focus on the activities and performance of the employees. In this way, employees follow the procedure and processes of the managers (Randeberg & Selvik, 2014).
- Laissez-faire management style: In this leadership style, leaders delegate power, authorities and tasks to their followers. The managers maintain coordination and collaboration with employees in the company. They motivate and inspire the employees for doing work. CEO ensures the safety and security of the employees. She provides the good working environment and basic facilities to employees. It will motivate and enhance competencies and potentials of the employees (Hing, Cheok & Ping, 2013).
Coca Cola Amatil is one the largest companies which is dealing in various beverage products such as water, energy drinks, tea, coffee and soft drinks. The company is using effective marketing and corporate strategies to overcome on the competitors. Now it is concluded that the company has become the biggest manufacturer and producer within the beverage industry. The company is using resources and capital in very effective manner. The company is using various leadership styles to gain the competitive advantages (Gani & Jermias, 2011). The company should improve the sustainability, corporate social responsibilities, and human resource management to increase and enhance sales and revenue of the company. It should resolve the water scarcity issue and environmental issues to achieve organizational goals and objectives. In this way, the company can build and enhance the sustainability of the company.
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