Threats to Coca Cola Amatil's Business Operations

Coca Cola Amatil is a leading soft drink and beverage company that faces various threats, including sugar-based beverages leading to health issues, poor currency performance in overseas markets, water resource challenges, and stiff competition from RC cola and Pepsi. To mitigate these risks, the company must conduct a PESTLE analysis, which evaluates changes in the market caused by external factors such as political, economic, socio-cultural, technological, legal, and environmental factors. The company's strong organizational culture, excellent leadership style, and commitment to employee security and safety will help it navigate these challenges.

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Executive summary
The report presents a brief overview of the business activities of Coca Cola Amatil. It
explains that how the company is expanding its business operation day by day. It explains the
core values, competencies, culture, mission and vision of the company. It tells that how the
company makes a corporate image in the global competitive market.
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Table of Contents
Introduction.................................................................................................................................................4
Mission........................................................................................................................................................4
Objectives....................................................................................................................................................4
Corporate strategies....................................................................................................................................5
Two criticism of the Coca Cola Amatil.........................................................................................................6
SWOT analysis.............................................................................................................................................7
PESTLE analysis............................................................................................................................................8
Association culture and leadership style.....................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Introduction
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).
Mission
 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).
Objectives
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
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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).
Corporate strategies
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).
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.
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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).
Two criticism of the Coca Cola Amatil
The two criticisms of the company have been discussed below.
1) 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).
2) 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
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these issues to achieve long term as well as short term goals and objectives (Pallegedara
& Warren, 2014).
SWOT analysis
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.
Strengths
 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).
Weaknesses
 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.
Opportunities
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 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).
Threats
 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
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.
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.
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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).
Association culture and leadership style
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
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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.
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.
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