Strategic Management in Coca Cola Amatil Corporation

Strategic management Strategic management Executive summary Strategic management plays an empirical role to accomplish the long term mission and vision of the company. Executive summary 2 Introduction 4 Evaluate the performance of their current or past strategy 4 Identify their mission, vision, values, objectives and strategy 4 External fit 5 Internal fit 6 Potential impact of external fit and internal fit on performance against their objectives 8 Recommend changes to improve their performance 8 Analyze strategic management of growth in that business 8 Identify and evaluate the current growth strategy 8 Recommend any changes

Running head: Strategic management
Strategic management

Strategic management
Executive summary
Strategic management plays an empirical role to accomplish the long term mission and vision of
the company. Coca Cola Amatil Corporation has been chosen in the paper to explain the
significance of strategic management. The organizational delivers soft drink and beverage
products around the world. The report depicts that how the firm uses growth strategies to strive
and cope with the rivalries in the marketplace. On the other hand, pestle analysis, porter five
forces analysis, SWOT analysis has been explained in the task. The company also uses growth
and corporate level strategies to make a dynamic and unique image in the marketplace. Coca
Cola Amatil uses core values and competencies to retain more clients and consumers.
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Strategic management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Evaluate the performance of their current or past strategy...........................................................................4
Identify their mission, vision, values, objectives and strategy.................................................................4
External fit...............................................................................................................................................5
Internal fit................................................................................................................................................6
Potential impact of external fit and internal fit on performance against their objectives.........................8
Recommend changes to improve their performance................................................................................8
Analyze strategic management of growth in that business..........................................................................8
Identify and evaluate the current growth strategy....................................................................................8
Recommend any changes that would result in higher level of growth performance....................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Strategic management
Introduction
The primary aim of this paper is to outline and describe the growth strategies of the firm. Coca
Cola Amatil Company has been selected in the task. It is the biggest beverage company in the
Australia. In today’s modern world, various soft drink and beverage products are launched by the
company. Furthermore, the paper also explains the mission, vision, values, objectives and
strategies of Coca Cola Amatil. On the other hand, here is the discussion about the internal and
external environment of the firm. More detail of the task has been discussed below.
Coca cola Amatil is one the largest bottlers of non-alcoholic drink beverages in the Asia pacific
region and one of the five major Coca Cola bottlers in the world. CCA operates and manages its
business operations and activities in six countries including Australia, Indonesia, New Zealand,
Papua New Guinea, Samoa and Fiji. The organization offers wide range of food and beverage
products such as sports drink, energy drinks, iced tea, soft drinks, coffee, tea and spring water.
The company employs approx 14,000 employees who provide products and services to around
270 million consumers all over the world. The organization works with partners to grow and
offer sustainable returns (Amatil, 2018).
Evaluate the performance of their current or past strategy
Identify their mission, vision, values, objectives and strategy
The mission of the company is to offer good quality of beverage products and services to the
consumers across the world. It wants to create a good and dynamic image in the minds of the
customers by rendering unique products to them. Furthermore, the organization wants to inspire
every moments of happiness and optimism through effective brands and actions (Shenkar, Luo,
& Chi, 2014).
The vision of the company is to achieve its short term mission for attaining long term objectives
and goals. The firm wants to maximize the profitability and revenue by satisfying the needs and
requirements of the consumers around the world. It also wants to protect the rights and interest of
the shareholders by providing them good returns and revenue. In this way, Coca Cola Amatil
wants to enhance and improve its goodwill in the large market.
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Strategic management
The values of Coca Cola Amatil guide actions and behavior of people. These values also provide
motivation to the workers for doing work in a hassle free manner. The effective and dynamic
values include accountability, leadership, collaboration, passion, diversity, quality, and integrity.
Furthermore, the core competencies include distribution system, strong brand name, and
operation control. These core competencies make the entity different from other companies
(Hattersley, 2013).
The main objective of Coca Cola Amatil is to achieve its short term as well as long term targets
and goals. In today’s competitive world, various strategies are initiated by the company to
overcome the competitors. One of the significant strategies that exercised by Coca Cola Amatil
is retrenchment strategy. The firm uses enormous retrenchment strategies in various units
including research and development, marketing and finance (Carah, 2014). The other strategy
that is used by the organization includes advertisement and promotional strategy. This strategy
helps to promote and enhance the food and beverage products in the international market. Under
this strategy, the company set the prices after considering the needs of the customers and weather
conditions. It shall be noted that the firm has been able to attract large number of consumers by
using promotional and advertisement strategy. On the other hand, Coca Cola Amatil also uses
leadership strategy to assist and guide the subordinates for performing tasks and roles in an
effective manner. It is noted that the organization also uses business intelligence strategy to gain
competitive advantages in the global world. The business intelligence strategy is an effective tool
to evaluate and analyze the large amount of data to make effective decisions within the
organization (Andini & Simatupang, 2014).
External fit
External fit is the alignment between the organization and its environment. The external fit is
related to the activities that the company develops and enhances to respond to the external
environment. This external environment plays an empirical role to beat the competitors in the
international market (Keller, Parameswaran & Jacob, 2011). The top management of the
company wants to amplify and enhance effectiveness in the bottling and production sector. With
regards to economies of scale, the firm continues to enhance and increase production at low cost.
Therefore, the senior management and top management think about new and innovative products
to meet the needs and demands of the customers. Furthermore, it is shall be noted that top
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Strategic management
management continues to struggle for sustainability in their firm. The organization currently
launched their plant bottle packaging products to create a unique image in the international
market. Coca Cola Amatil is updating their technology to improve the performance of the
subordinates. Coca Cola Amatil’s external fit in the market is similar to other leaders in most
respects and it is showing high and great commitment to having a distinguishable geographic
presence. In addition, the Corporation differentiates its beverage products from the competitors
to stay in the competitive market. Pestle analysis is done by Coca Cola Amatil to evaluate and
identify the plans, strategies and policies of the rivalries globally (Epstein & Buhovac, 2014).
Coca Cola Amatil’s PESTLE analysis
(Source: Coca Cola Amatil, 2018).
Internal fit
To analyze the internal fit, the company identifies and evaluates the internal environment and
factors. The internal factors have been stated below.
Threat of entrants: Coca Cola Amatil does have wide range of rivalries in the soft drink
industry. Thus, the threat of entrants is low for the soft drink and beverage industry. There are
very few entrants who can strive and cope with Coca Cola Amatil. On the other hand, barriers to
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Strategic management
entry when entering the beverage industry will be a high capital investment. The company must
continue enhance their brand reliability globally and induce the consumers to have consistency in
the soft drinks products and services.
Barriers to entry: One of the significance forces that shape the soft drink and beverage industry
is barriers to entry. The company is facing strong and immense competition in today’s
competitive world. The main competitors of the firm are included PepsiCo, Nudie foods, Kirks,
Golden circle, Schweppes and Bundaberd.These Corporations have the benefit over there
competitors. Therefore, barriers to entry are high in the marketplace (Salmons, 2012).
Competitive rivalry: The competitive rivalry between two main competitors the PepsiCo and
Coca Cola Amatil to satisfy the needs and tastes of the customers in this industry. There is an
intensive and high rivalry between these two organizations in the global market (O'Connor,
2011).
Power of the buyers: The power of buyer is high for Coca Cola Amatil Corporation. They play
a significant role in the organization because they are considered the part of the allocation
process of the firm. They help to reach the consumers worldwide. Furthermore, it is stated that
buyers are part of the process and firm. In addition, they are vital part of the strategy used by
Coca Cola Amatil (Handayati, Simatupang & Sridharan, 2010).
Power of suppliers: One of the effective forces that help to enhance the success and growth of
the firm is power of suppliers. The power of suppliers is high in porter five force analysis. They
maintain high power because they also play an important in the process.
SWOT analysis is also done by the company. The SWOT analysis has been stated below.
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Strategic management
(Source: Coca Cola Amatil, 2018).
Potential impact of external fit and internal fit on performance against their objectives
There are various models to analyze the position and plans of the competitors in the marketplace.
These models put a favorable impact on the productivity of the employees and organization in
order to attain desired goals and objectives. PESTLE analysis is done by Coca Cola Amatil to
analyze and identify the size, trends and nature of the market to stay in the rivalry market.
Furthermore, it also helps to accomplish the long term vision and mission of the firm. This model
is used to eliminate and reduce the cost of the products and services. On the other hand, SWOT
analysis is done by the firm to analyze and evaluate the opportunities and threats of the market. It
shall be noted that SWOT analysis also measures the strengths and weaknesses of the rivalries in
the international market. In addition, the porter five forces model helps to identify and measure
the threats of substitutes and rivalries. All these models support to maximize the outcomes of
Coca Cola Amatil with minimizing the risks and hurdles of the market. By using these models,
the organization has been able to destroy the competitors to fulfilling the long term objectives
(Sheth, 2011).
Recommend changes to improve their performance
It is recommended that the company should improve and develop sustainable human resource
management to enhance the performance and productivity of the workers. Coca Cola Amatil
should focus on the marketing strategies to attract consumers and to improve the effectiveness of
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Strategic management
the employees. In addition, innovation and new soft drinks products must be introduced by the
company to attract and retain maximum number of customers across the world. Rewarding the
potential and talented employees can be a good option to improve and develop their efficiency
and productivity at the workplace. Moreover, it shall be noted that Coca Cola Amatil needs to
focus and monitor on the opportunities and risks of the market. Organizational changes shall be
managed effectively to bring some innovation in the firm.
Analyze strategic management of growth in that business
Identify and evaluate the current growth strategy
The Firm is expanding and exploring its business activities and operations globally. Furthermore,
the organization launches premium products and services to increase the sale of the products and
services (Epstein & Buhovac, 2014). Coca Cola Amatil also promotes the smaller packages of
beverages and soft drinks as healthier choices. These smaller packages carry higher margins and
revenue. The company is boosting and increasing its revenue through the innovation of new
beverages. The current growth strategies have been stated below.
Low cost leadership strategy: One of the significant and foremost strategies in growth strategy
is low cost leadership that helps to set the suitable prices of the soft drink and beverage products
and services. This strategy helps to maximize the profitability with eliminating the extra cost of
the products. The organization continues control on the prices to attain rivalries benefits
worldwide. Coca cola Amatil also focuses on the internal efficiency so that food and beverage
products can be manufactured at low cost. It supervises and monitors on the rivalry prices to
attract more clients (McIntyre, Ivanaj & Ivanaj, 2013).
Differentiation strategy: This strategy is initiated by Coca Cola Amatil to distinguish its
beverage products from the competitors. It is noted that the company focuses on the
differentiation strategy to make a dynamic position in the competitive market. By using
differentiation strategy, the organization has been able to strive and cope with the rivalries. The
Corporation uses this strategy in every business activities such as bottle shapes, plant, machinery
and marketing campaign to produce the best quality of soft drink and beverage products (Grant,
2016).
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Strategic management
Diversification strategy: The organization also uses diversification strategy to diversify its
products and services. This type of strategy can be risky. Therefore, the firm needs to plan
carefully and effectively when using a diversification growth strategy (Abwanzo, 2016).
Market penetration strategy: It is one of the effective and dynamic strategies that is initiated
by Coca Cola Amatil. By using this strategy, the firm has been able to know the needs and
demands of the existing products that are being used by the consumers in the marketplace. This
strategy helps to increase the market share and profit margin of the firm (Kiran, 2012).
Recommend any changes that would result in higher level of growth performance
It is recommended that the company should use leadership styles to monitor and focus on the
activities and operations of the business effectively. Along with this, market expansion strategy
shall be used by Coca Cola Amatil to analyze the conditions and nature of the market.
Appropriate prices of the beverage products shall be set by the organization in order retain large
number of consumers. In this way, the company has been able to reach its high level of
profitability and revenue.
Conclusion
In the above mentioned events, it has been measured that Coca Cola Amatil is one of the
significant brands in beverage industry. The analysis shows that the company uses dynamic
growth strategies to flourish and explore its business activities globally. On the other hand,
SWOT analysis, pestle analysis and porter five forces analysis are done by the company to attain
sustainability and overcome the rivalries in the international market. Now it is recommended that
marketing campaigns and survey shall be done by Coca Cola Amatil to increase the demand of
the products and services.
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