Strategic Management Analysis of Coca Cola Amatil

Running head: strategic management 1
Strategic management
Institution
Course
Date

Strategic management 2
Strategic Management Analysis of Coca Cola Amatil
Question 2
According to Hill, et al., (2016) SWOT Analysis provides a detailed scrutiny of a firm’s
strengths, weakness, opportunities and threats but in this case we shall only look at some of the
opportunities and threats facing Coca-Cola Amatil Ltd (CCL). They are tabulated below:
Opportunities of CCL Threats faced by CCL
 Novel environmental policies
which will craft a plain playing
field for all players in this
industry. It will thus enable CCL
gain ample market share.
 Lower rates of inflation– The
decreasing inflation rates will
bring more market stability, and
facilitate credit at lower interest
rates to the clients of CCL
 Sprouting up of other markets due
to government agreement – the
implementation of new-fangled
technology standard and
government free trade concord
has offered CCL a chance to
venture a new up-coming market.
 The current taxation policies can
considerably affect the manner of
carrying out business and can
unlock new opportunities for
reputable players such as CCL to
augment its productivity.
 Liability laws are dissimilar in
different nations and CCL might be
vulnerable to a variety of liability
claims due to changes in policies in
those markets.
 Current environment decrees
contained in the Paris Agreement
(2016) can be a threat to particular
existing product classes.
 Scarcity of experienced labor force in
particular international markets pose
a threat to stable increase of profits
for CCL in those markets.
 Mounting strengths of neighboring
distributors as well represents a threat
in certain markets as the competition
is paying higher margins to the local
distributors.
 The demand of the most lucrative
commodities is by nature seasonal
and any implausible occurrence in the
peak season might affect the
productivity of the business in both
short to medium term.

Strategic management 3
Question 2.1
CCL PESTEL analysis is a planned tool to evaluate the macro environment of the company.
Political factors Economic factors
 Political stability
 Government interference in Food,
Beverage & Tobacco sector.
 Protection of Intellectual property
 Trade tariffs and regulations
 Tax incentives and rates
 Stability and exchange rates of host
nation currency
 Cost of labor and productivity
 Rate of economic growth
 Inflation rates
 Unemployment rates
Social factors Technological factors
 Skills level and demographics of the
population
 Culture
 Attitudes
 Power structure in the society
 Technological advancement by
competitors
 Technological effect on product
offering

Environmental factors Legal factors
 Climate changes
 Weather
 Law regulations of environmental
pollution
 Recycling
 Discrimination laws
 Health and safety laws
 Intellectual property laws
 Employment laws
Question 2.2
Porter's Five Forces is a model which is used to identify and analyze five competitive forces that
mould all industries, and assists approximate an industry's strengths and weaknesses (Roy,
2009). In this case the 5 forces will be explained in relation to the Food, Beverage & Tobacco
industry where Coca Cola Amatil is.