Amcor Limited: In-depth Analysis of Business Strategies and Accounting

This report offers a detailed analysis of Amcor Limited, a prominent packaging industry leader. It begins with a brief overview of Amcor's history and current operations, followed by an examination of its complex organizational structure, including its various divisions and management levels. The report identifies key problems within the organization, such as inflexibility, high product costs, and weaknesses in customer relationship and supply chain management. It then outlines Amcor's strategies, including mergers and local logistics partnerships. Furthermore, it delves into the system acquisition methods, specifically the use of SAP software, and provides a system flowchart illustrating the sales process. The report also addresses control problems and process design, highlighting the importance of employee teamwork, customer relationship management, and supply chain management. Part 2 of the report discusses the accounting software package utilized by Amcor (Xero), market size, and competitors (Georgia Pacific, Silgan Holdings). Finally, it offers strategic recommendations for Amcor, including increasing flexibility, reducing costs, improving employee involvement, and enhancing SCM and CRM. The report concludes by summarizing the key findings and recommendations, emphasizing the importance of strategic adjustments for Amcor's continued success.

Running head: AMCOR LIMITED
Amcor Limited
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Part 1............................................................................................................................................3
Brief Description of Amcor Limited.......................................................................................3
Organizational Structure..........................................................................................................3
Problems in the Organization in Amcor Limited....................................................................5
Strategies of Amcor Limited...................................................................................................6
System Acquisition Methods of Amcor Limited.....................................................................6
System Flowchart of Amcor Limited......................................................................................7
Control Problem in the System................................................................................................8
Process Designing....................................................................................................................8
Part 2............................................................................................................................................9
Accounting Software Packages...............................................................................................9
Market Size............................................................................................................................10
Market Leaders and Competitors...........................................................................................10
Recommendations..................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
The type of software of application keeping the record and collections of all the
transactions related to finance and accounting is known as accounting software (Abraham and
Dao 2017). The accounting software helps in the processing of the transactions. This particular
software has various modules of functions like accounts receivable, ledger, accounts payable and
trial balance. There are various benefits of this software. It helps to save money and time. It is
extremely cost effective (Appelbaum et al. 2017). However, it does have some limitations. The
major drawback of this particular accounting software is that it is not flexible. The inflexibility
often creates problem for the organizations, which have opted for this software.
The literature review given below provides an overall description of the recognized
organization of Australia, Amcor Limited. The discussion part of review outlines the structure of
the organization with relevant diagram and description. The problems in the organization are also
discussed in the below review. Amcor Limited has undertaken several strategies for their
business ("Amcor - Home", 2017). These strategies along with the system acquisition methods
are mentioned in the review. The review further describes about the process designing and
control problems. The second part of the review describes about the accounting software
package, the competitors and the market leaders of Amcor Limited. Recommendations are given
for the improvement of the business of Amcor Limited.

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Discussion
Part 1
Brief Description of Amcor Limited
One of the leading organizations in packaging industry, Amcor Limited has spread its
business and popularity in all over the world. Founded in the year 1986, this recognized
organization used to make pulp paper and paperboard products with perfect and flexible
packaging in its earlier days ("Amcor - Home", 2017). In the recent days, it has focused on the
production of flexible and rigid packages of plastic. The products of the organization help to
protect the products of food, beverages, medical care, personal care and pharmaceutical care.
Amcor Limited has its headquarters in Zurich, Switzerland. The head office is situated in
Hawthorn Victoria, Australia.
Organizational Structure
Amcor Limited has a complex organizational structure that comprises of the corporate
and the management structure of the organization. This structure has all the three management
levels present (Pearlson, Saunders and Galletta 2016). They look after the sales, development
and growth of Amcor Limited. The organizational structure of Amcor Limited is given below.

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Figure 1: Structure of Organization of Amcor Limited
(Source: "Amcor - Home", 2017)
The figure given above helps to understand the three main sections of Amcor Limited.
They are the Corrugators, Distributors and the Manufacturing, Products and Packaging group.

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Figure 2: Several Sections of Amcor Limited
(Source: "Amcor - Home", 2017)
The main advantage of Amcor Limited is that it has several sections in its business
(Appelbaum et al. 2017). The above figure helps to identify the several sections like the Amcor
Asia, Amcor Australasia, Amcor Flexibles, Amcor PET Packaging, Amcor Sunclipse and Amcor
Rentsch.
Problems in the Organization in Amcor Limited
. The products of the Amcor Limited organization help to protect the products of food,
beverages, medical care, personal care and pharmaceutical care. This is one of the leading

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organizations in packaging industry. However, it has some of the significant problems in its
organization that are pushing them down in the list of organizations (Ismail and King 2014). The
problems of Amcor Limited are mainly for the inflexibility in the structure of the organization.
The structure is not at all suitable for long term objectives and rather are for interim goals. The
second problem in the organization is the excessive price of their products. Customers are
avoiding this organization, as they are not able to afford their products. The third problem is the
lack of customer relationship management and degradation in the supply chain management. The
company has shortage of raw materials most of the time (Appelbaum et al. 2017). The next
problem is the less involvement of employees. They are not willing to work organization any
more.
Strategies of Amcor Limited
The strategies of any organization help to overcome the organizational problems and
improve in the efficiency (Peppard and Ward 2016). The first and the foremost strategy of
Amcor Limited is the merging up with a Toronto based organization, namely Plastic Moulders
Limited. This organization has flexible technological and technical teams and it produces
molding, assembly services, engineering and designing for the packaging of products for health,
food, and beauty, industrial and pharmaceutical markets. This acquisition has increased the
overall revenue of Amcor Limited (Pearlson, Saunders and Galletta 2016). The next strategy of
the organization is that they have selected all the partners of logistics from the local region. This
reduces the shipping cost.
System Acquisition Methods of Amcor Limited
This organization utilizes the principle Enterprise Resource Planning software for their
system. They have undertaken SAP for their business. Several versions of SAP are utilized here

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including the SAP SCM 5.0, SAP CRM 7.0 and the SAP ERP 6.0 (Cassidy 2016). The major
benefit of this software is that it can integrate all the modules of functions of an organization
(Peppard and Ward 2016). It even increases the flexibility and reduces the complexities.
System Flowchart of Amcor Limited
The pictorial representation of any process or business is known as the system flowchart
of that business. The figure given below provides the entire procedure of sales of Amcor
Limited.
Figure 3: System Flowchart of Amcor Limited
(Source: "Amcor - Home", 2017)

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The above figure helps to understand the entire procedure of sales in Amcor Limited
(Cassidy 2016). It is divided into five sections of customer, sales, contracts, legal and fulfillment.
When a customer places an order, it is passed through several checkpoints and if all the
conditions are satisfied, the product is shipped and the customer receives the product. However,
if the conditions are not met, the sales representative cancels the order.
Control Problem in the System
The main problems of the organization are due to the inflexibility of the organizational
structure and the lack of interests of the customers. Amcor Limited has selected SAP Enterprise
resource planning for the improvement of their business (Ismail and King 2014). This is helping
them to cope up with the lack of supply chain management and customer relationship
management as well.
Process Designing
The employees of the organization are not working as a team. They must work as a team.
This will in turn improve the overall sales and productivity (Peppard and Ward 2016). When all
the workers will work together, it is evident that time consumption will be less.
Customer Relationship Management
The CRM or customer relationship management helps to maintain a stable relation with
the customers of an organization (Li et al. 2017). Amcor Limited is suffering from lack of CRM.
They must focus on this feature to gain more popularity.
Supply Chain Management

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The SCM or supply chain management helps an organization to keep a stable supply of
all the raw materials and requirements of the business (Nguyen, Nguyen and Bosch 2017). It is
observed that Amcor Limited has problems in the daily supply of raw materials. They should
keep an eye on their inventory so that there is no shortage of raw materials.
Part 2
Accounting Software Packages
Accounting software packages help an organization to attain the organizational goals and
objectives within less time (Dimitriu and Matei 2014). Amcor limited is suffering through
various threats and problems for some unavoidable reasons. An accounting software package can
be an evident solution for their problems. They have undertaken an accounting software package
for their business. The accounting software package undertaken by Amcor Limited is Xero
(Smith 2017). A New Zealand based company, Xero mainly produces software that are cloud
based. These products are based on the cloud deployment model of Software as a Service or
SaaS. The major benefit of this accounting software is that many customers can be supported
within little time by this software.

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Market Size
Figure 4: Current Market Size of Amcor Limited
(Source: "Amcor - Home", 2017)
The above diagram helps to understand the current market size of Amcor Limited. A
graph is given in the diagram which illustrates that Amcor Limited had difficulties in the
previous years (Kavanagh and Johnson 2017). However, they are slowly overcoming the
challenges and gaining a stable position in the market. The shares of Amcor Limited are stable
and the organization is regaining its popularity slowly.
Market Leaders and Competitors
Amcor Limited is one of the leading organizations in Australia that produces packaging
to several items (Coviello and Tanev 2017). It does have some of the major competitors in the
field. The most important competitor of the organization is the Georgia Pacific. One of the most

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popular American companies, Georgia mainly manufactures and distributes tissues, paper, paper
towel and pulp. The second competitor of the organization is the Silgan Holdings (Galliers and
Leidner 2014). The main advantage of this organization is that it leads in the stock prices, which
are extremely high. Therefore, Amcor Limited, Silgan Holdings and Georgia Pacific are the
market leaders.
Recommendations
The problems faced by Amcor Limited can be solved by following several plan. The
recommendations for Amcor are as follows:
i) Flexibility: The organizational structure of Amcor Limited is inflexible and is not
perfect for long term goals. They should focus on the structure and make it flexible.
ii) Cost Effective: The products of Amcor Limited are extremely high in price. It is
recommended that they should recue the cost so that it is affordable by all.
iii) Involvement of Employees: The employees should work as a team so that te
productivity of the organization is increased.
iv) SCM and CRM: The organization do not have flexible SCM and CRM. It is
recommended that they should look after the supply chain management and customer
relationship management.
The recommendations would be extremely helpful for Amcor Limited for improving their
business efficiency.