Coca-Cola Amatil's Business Strategies

This assignment examines the various business strategies employed by Coca-Cola Amatil to achieve sustained growth and manage potential risks. It analyzes the company's differentiated product portfolio, unique competitive advantages, and emphasis on a strong corporate culture that prioritizes employee well-being and safety. The report also explores how Amatil leverages its global network and relationships with partners like Coca-Cola Company to enhance its capabilities in Asia.

Strategic development within Coca Cola Amatil
Name:
Course:

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Executive summary:
This report concerns mainly with the strategic development within the organizations with
application on Coca Cola Amatil. The company is considered one of the largest bottlers of non-
alcoholic ready-to-drink beverages in the Asia-Pacific. Its diversified production strategies
enable it to fulfil its customer needs and sustain its growth.
This report consists of four parts, the first part describes the company mission, vision, core
competencies and strategies. The second part provides a criticism of the business practices of the
company and their outcomes. The third part displays the environmental analysis for the
involvement of the organisation in the context of the industry. Finally, the forth part analyses the
organizational culture.
The report assumes that the diversified and differentiated strategies conducted by Amatil enabled
it to sustain its growth and avoid potential risks. The company could also create its unique
competitive advantage by differentiating its designs from other competitors. The corporate
culture at Amatil guides the staff towards fulfilling the organizational goals.

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Table of contents
Introduction....................................................................................................................................3
First: The development and growth of the organisation from its beginnings to the present..........3
Second: Criticisms of the business practices of the company........................................................4
Third: The environmental analysis for the involvement of the organisation in the context of the
industry............................................................................................................................................5
Forth: The organisational culture within the organisation.............................................................6
Conclusion:.....................................................................................................................................7
References.......................................................................................................................................8

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Introduction
Coca-Cola Amatil (CCA) operates in six countries, including, Australia, Indonesia, Fiji and
Samoa, Fiji and Samoa and Papua New Guinea. The company specializes in producing non-
alcoholic and alcoholic beverages, fruit juice, coffee, tea, water, beer, flavored milk, energy
drinks and food snacks ready to eat. The company operates for more than 100 years, it employs
about 14 thousand people. The company serves more than 270 Mn. customers which encourage
it to lead the innovation and create a sustainable future. Amatil is committed to build a talented
and diversified workforce, which is aligned to its core values and culture. It allows for a career
path to its employees that fulfills their aspirations (Coca Cola Amatil, 2016d)
The Amatil sustainability framework focuses on four areas according to Coca Cola Amatil
(2016d), as follows:
 People: Refers to the workforce at the company, as it provides an open workplace to motivate
them.
 Wellbeing: By providing the consumer with a variety of goods that fulfill their needs and
disseminate quality information to them to make their decisions.
 Environment: The company avoids activities that may harm the environment to keep its
sustainability.
 Community: the company operates with its partners to deliver and gain shared benefits.
This report analysis the strategies of Amatil, practices, its environmental analysis and its
corporate culture.
First: The development and growth of the organisation from its beginnings to the present:
 Amatil mission, vision and core competencies:
Mission: Amatil seeks to refresh the world and inspire people with happiness and optimism
(UK Essays, 2017).
Vision: The Amatil vision is to create millions of happy moments to its customers and make
them possible. To fulfill this vision, the company diversifies its products, creates shared
value with its customers, creates common purposes with its partners, lean production system
and offers attractive returns to the shareholder. Amatil vision reflects the scale of business in
the current time and in the future (Coca Cola Amatil, 2017).
Core competencies: In order to fulfill its mission, the company has its unique and inimitable
fashion that could not be imitated by competitors, the company uses different bottling
partners to focus on marketing and beverage creation (UK Essays, 2017).
 Amatil strategies:
Amatil follows the group strategy to achieve its success, as it positions the company to create
growth and get long term value. As a result of market changes, Amatil creates partnerships to
adapt to the changing environment by working close to its partners, produce and sell a variety
of products (Coca Cola Amatil, 2015).
Creating a relationship built on trust and collaboration is the enabler for growth for the
company (Coca Cola Amatil, 2016d).
According to Coca Cola Amatil (2017), there are three pillars that the company' strategy
depends on:

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 Lead of strengthening position: Through brand leadership in different categories in the
market, leading innovations and responding to customer's demand.
 Execute changes in the production and the market: Through customer service,
diversification of production, leveraging the company economies of scale.
 Partnership: Through aligning the company strategy with the Coca-Cola Company
strategy and other partners, creating a shared vision with partners and increasing the
profitability of the company and its partners.
 M. Porter’s generic strategies
Porter’s framework of competitive strategy (1980) as cited in Strategic Partners (n.d.),
discussed the generic strategies that organizations adopt as the cost reduction and product
differentiation, but the new strategies depend more on the value chain which require building
and sustaining long term relationships with partners to increase the organizational
capabilities among the organizational activities. It is obvious the Amatil depends on
leveraging its value chain and stringing its relations with its partners.
Also, as Porter argues that firms that have a big market share are successful as they can
benefit from reducing their costs, which is a strategy also adopted by Amatil as it benefits
from the product differentiation strategy to reduce its costs. Accordingly, Amatil combines
different strategies (Tanwar, 2013).
 Improving the current strategies
In order to improve its current strategies, Amatil reformulates several projects as introducing
smaller packs, uses its innovation capabilities, improving the market model, by improving
the consumer experience and automating the routine tasks. The sales team is freed for new
market and business development activities and to use the digital marketing tools (Coca Cola
Amatil, 2016a).
Second: Criticisms of the business practices of the company:
 The challenge of big data:
Amatil has to deal with a large volume of data, which requires information systems to
manage and monitor the quality of data. The use of information system requires changes in
the technical infrastructure and the employees' acceptance to change (Coca Cola Amatil,
2012).
 The solution: Implementing the SatoriCCM. Monitoring system (Coca Cola Amatil,
2012).
 The outcome: The company implemented a control and monitoring system, but the
employees' resistance to change created an obstacle of applying the system. The company
lacks the managerial capabilities that could lead the implementation of the new system
and change the employees' behavior. As the staff refused to deal with the new system, it
was not monitored. It was supposed to monitor the staff credit card activity through the
SatoriCCM. But efforts were made to change the employees' culture by describing the
benefits of the new system (Coca Cola Amatil, 2012).
 Challenge of managing global business

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Being a global company result in facing some strategic challenges represented in the rapid
expansion of the brand portfolio, the diversified product types, the complexity of distribution,
and aligning to legislations (Coca Cola Amatil, 2016c).
 The solution: Implementing ORTEC for SAP ERP and ORTEC Route Scheduling (Coca
Cola Amatil, 2016c).
 The results: Achieving increased levels of flexibility in production and delivery, cost
cut, increased customer satisfaction, optimizing the logistic operation and on time
delivery (Coca Cola Amatil, 2016c).
Third: The environmental analysis for the involvement of the organisation in the context of
the industry:
 SWOT Analysis of Coca Cola Amatil:
The SWOT analysis is conducted to analyze the organizational internal strengths and
weaknesses and the external opportunities and threats, according to UK Essays (2017), it
could be discussed as follows:
 Strengths: It has a strong brand capabilities and superior returns for the company
shareholders. The company has an excellent value chain, which involves the operational
planning, logistics, infrastructure and manufacturing. Amatil is very responsive to
customer demand, has innovation capabilities, valuable resources, high technological
capabilities and quality system that enables the company to keep its leading position in
the market and achieve efficiency. The company key capabilities, includes, the
improvement in the inventory management system. The inventory management system
ensures that the appropriate quantities are distributed and the appropriate stock is kept in
the store. Operating with low inventory levels reduces the costs.
 The company invests in the automated manufacturing, warehouse led to cost saving. It
also invests in the semi-automated distribution center, which resulted in better customer
service. Accordingly, Amatil is considered among the most cost saving branches in the
global Coca Cola group.
 Weaknesses: The company has to monitor its safety levels at workplace to provide a
healthy platform for its staff. The company needs to promote for the zero harm teams
concept.
 Opportunities: The Coca-Cola Amatil is a world class leader in the beverage industry. It
has good capabilities in customer service and distribution service in the market. Amatil
could flexibly respond to consumer needs, as it gathers information about its customers,
their needs and their preferences the company technological capabilities enables it to
track its customer through the wireless technology as it monitors the vendor machine
stocks. These capabilities inform the company about the consumer intends to purchase
the products and it could be used in the company promotional activities. Amatil adopts
the policy of cutting the greenhouse gas emissions.
 Threats: The rareness of the raw material used in the soft drink creates the company
competitive advantage, however, the soft drink industry in Australia is about to reach its
maturity phase. The market conditions encouraged the Amatil competitors to produce and
promote for healthier products as the fruit juice and energy drinks.

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Coca-Cola Amatil faces the challenge of deteriorating earnings-per-share ration, also the
company expects more decreases in its earnings-per-share over the coming year (Roddan,
2016).
The Amatil major risk related issues resulted in an initial settlements estimate about
$250k, that is why the company has to identify the sources of risk in the strategic and the
operational levels, to adopt a collaborative process for risk management and transfer and
to review its risk management framework and its potential impact (Aon Corporation
Australia Limited, 2014).
To overcome its threat, Amatil started to expand its business beyond the carbonated soft
drinks, by diversifying its production to include coffee, alcohol, fruit juice and water (UK
Essays, 2017) and (Coca Cola Amatil, 2016b).
Forth: The organisational culture within the organisation:
 The corporate core values:
Coca Cola Amatil corporate values control and guide the staff behavior and the decision
making process (Coca Cola Amatil, 2016d). The company main values could be described
according to Coca Cola Amatil (2017), as follows:
 Openness and straight forward
 Taking initiatives and owing the output
 Focusing on the short and long run
Coca Cola Amatil does not rely only on the good management systems, but it also focuses on
changing the corporate culture. Face to face communication facilitates the problem solving.
Promoting good health and safety at the workplace among the employees result in their
satisfaction besides of setting promotional system for safety practices. The staff promotes for
good brand image and safety at the workplace to be engaged in the corporate culture. The
company promotes for the zero harm teams concept to show the importance and the value of
the teams. Also, it promotes for reporting culture to enhance the knowledge sharing across the
organizational departments, as employees are encouraged to report everything they practice
(Adams, 2011).
Coca-Cola Amatil in Australia promotes for the culture of empowering female talent in the
leadership positions. It plans for increasing the senior leadership women from 25% to 35% to
encourage managers to think broadly by evaluating the employees' skills at different levels
(The Ministry of women's affair, 2012).
The Amatil policy is to find the talents who have cross-functional and transferable skills, as
women who have the cross-functional skills and can develop their careers. The future leaders
are invited to be enrolled in a 12 month development initiative which is called Excel (Coca
Cola Amatil, 2013).
 CEOs who inspired the employees, developed / implemented the strategies successfully
and created the company’s culture:

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Amatil could leverage its global network through its brand partners, shareholders, the Coca-
Cola Company to boost its capabilities in Asia. Amatil gain benefits from the existence of
two of the international Coca-Cola in the Asia region. Amatil directors are responsible for
decision making and promoting for the corporate culture, investment decisions, the change
processes and employee development. The group managing director, Alison Watkins, argues
that the corporate board of directors could make the major growth business for Amatil in
Indonesia. Also, India witnessed the practice of using the perfect fruit under the guidance of
Non- executive Director of Amatil and Chairman of Hindustan. As Amatil believes that it is
very important to hire the best leaders and develop the skills of the future leaders (Asialink
Business, 2017).
Conclusion:
The report assumes that the diversified and differentiated strategies conducted by Amatil enabled
it to sustain its growth and avoid potential risks. The company could also create its unique
competitive advantage by differentiating its designs from other competitors. The corporate
culture at Amatil guides the staff towards fulfilling the organizational goals.
It is obviously the Amatil depends on leveraging its value chain and stringing its relations with
its partners and it combines different strategies to achieve its business objectives.
Amatil could leverage its global network through its brand partners, shareholders, the Coca-Cola
Company to boost its capabilities in Asia. Amatil gain benefits from the existence of two of the
international Coca-Cola in the Asia region.
Coca Cola Amatil does not rely only on the good management systems, but it also focuses on
changing the corporate culture. Promoting good health and safety at workplace among the
employees result in their satisfaction besides of setting promotional system for safety practices.

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References
Adams, G., 2011. Our zero harm journey. The Business Leaders’ Health and Safety.
Aon Corporation Australia Limited, 2014. Australian case study- Coca-Cola Amatil. Australia.
Asialink Business, 2017. Coca-Cola Amatil - Case study. [Online] Available at:
https://asialinkbusiness.com.au [Accessed 27 August 2017].
Coca Cola Amatil, 2012. Case study.
Coca Cola Amatil, 2013. Sustainability port.
Coca Cola Amatil, 2015. Real possibilities real progress - Annual report.
Coca Cola Amatil, 2016a. Half year report. Australia.
Coca Cola Amatil, 2016b. Investor day.
Coca Cola Amatil, 2016c. The world of Coca Cola Amatil optimized by ORTEC.
Coca Cola Amatil, 2016d. Annual report.
Coca Cola Amatil, 2017. Vision & values. [Online] Available at: http://ccamatil.com [Accessed
27 August 2017].
Roddan, M., 2016. Coca-Cola Amatil sees further challenges. [Online] Available at:
http://www.theaustralian.com.au [Accessed 27 August 2017].
Strategic Partners, n.d. The value chain in the 21st century - Adapting to change. [Online]
Available at: http://www.strategispartners.com.au [Accessed 27 August 2017].
Tanwar, R., 2013. Porter’s generic competitive strategies. IOSR Journal of Business and
Management, pp.11-17.
The Ministry of women's affair, 2012. Transforming Cultures to grow Women Leaders. New
Zealand.
UK Essays, 2017. Evaluation of Coca Cola strategies: SWOT analysis. [Online] Available at:
https://www.ukessays.com [Accessed 27 August 2017].