Coca Cola Amatil's Sustainability and Corporate Social Responsibilities

The beverage company has become the largest manufacturer and producer within the industry by utilizing effective marketing and corporate strategies to overcome competitors. The company should focus on improving sustainability, corporate social responsibilities, and human resource management to increase sales and revenue. Additionally, resolving water scarcity issues and environmental concerns can help achieve organizational goals. This will enable the company to build and enhance its sustainability.

Running head: Introduction to management
Introduction to management

Introduction to management
Executive summary
The reports present a brief overview of organizational culture of the Coca Cola Amatil
Company. It explains the mission, vision, objectives, and core competencies and values of the
company. The report also explains the key issues and leadership styles of the company. It
explains that how the company is maintaining a good identity in the market.
2

Introduction to management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Part 1:..........................................................................................................................................................4
Corporate strategies....................................................................................................................................5
Part 2:..........................................................................................................................................................6
Criticisms in Coca Cola Amatil Company......................................................................................................6
Part 3:..........................................................................................................................................................7
Porter five forces analysis............................................................................................................................7
PESTLE analysis............................................................................................................................................7
Part 4:..........................................................................................................................................................8
Organizational culture and leadership style................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
3

Introduction to management
Introduction
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.
Part 1:
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.
4

Introduction to management
 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).
Corporate strategies
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).
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).
5

Introduction to management
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).
Part 2:
Criticisms in Coca Cola Amatil Company
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
6

Introduction to management
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).
Part 3:
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.
7

Introduction to management
 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.
PESTLE analysis
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).
Sociological factors:
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.
8

Introduction to management
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).
Part 4:
Organizational culture and leadership style
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
9

Introduction to management
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).
Conclusion
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
10

Introduction to management
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.
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.
11

Introduction to management
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.
Brennan, L., Binney, W., McCrohan, J. and Lancaster, N., 2011. Implementation of
environmental sustainability in business: Suggestions for improvement. Australasian Marketing
Journal (AMJ), 19(1), pp.52-57.
Cortese, C., 2009. A Profile of the Non‐Executive Directors of Australia's Largest
Companies. Australian Accounting Review, 19(1), pp.33-41.
Cuganesan, S., Guthrie, J. and Ward, L., 2010, December. Examining CSR disclosure strategies
within the Australian food and beverage industry. In Accounting Forum (Vol. 34, No. 3, pp. 169-
183). Elsevier.
Fairgray, S., Tamásy, C. and Le Heron, R., 2012. New Geographies of Accumulation,
Globalising Firm Networks and the Role of the Auckland Region in the Australasian
Economy. Urbani Izziv, 23.
Gani, L. and Jermias, J., 2011. Investigating the Joint Effects of Strategy, Environment and
Control Structure on Performance. Gadjah Mada International Journal of Business, 13(3).
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.
Hing, L.K., Cheok, C.K. and Ping, L.P., 2013. Robert Kuok: Family, Dialect, and State in the
Making of a Malaysian Magnate. Australian Economic History Review, 53(3), pp.268-291.
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.
12

Introduction to management
Klimes, P., Janda, M., Ibalim, S., Kua, J. and Novotny, V., 2011. Experimental suppression of
ants foraging on rainforest vegetation in New Guinea: testing methods for a whole‐forest
manipulation of insect communities. Ecological Entomology, 36(1), pp.94-103.
Lewis, H., 2008. Eco-design of food packaging materials. Environmentally compatible food
packaging, p.238.
Mialon, M., Swinburn, B., Wate, J., Tukana, I. and Sacks, G., 2016. Analysis of the corporate
political activity of major food industry actors in Fiji. Globalization and health, 12(1), p.18.
Okur-Berberoglu, A., 2014. Exploitation of environmental resources and rural communities by
global food companies. Geography, Environment, Sustainability, 7(4), pp.54-67.
Oplatka, I. and Hemsley-Brown, J. eds., 2012. The management and leadership of educational
marketing: Research, practice and applications. Emerald Group Publishing Limited.
Ouppara, N.S. and Sy, M.V.U., 2012. Quality of Work Life Practices in a Multinational
Company in Sydney, Australia. Procedia-Social and Behavioral Sciences, 40, pp.116-121.
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).
Setyawati, D. and Santoso, I., 2012. Value Chain Analysis on the Logistics Management as the
Basis for Strategy Formulation to Increase Customer Satisfaction (Case Study in PT. Coca-Cola
Amatil Indonesia-Plant East Java). Agroindustrial Journal, 1(1), p.28.
13