Strategic Development Analysis Report: Coca-Cola Amatil Company

This report provides a comprehensive analysis of the strategic development of the Coca-Cola Amatil Company. It begins with an executive summary outlining the company's goals, followed by a description of the organization, its vision, and current strategies. The report examines the strategic types employed, including M. Porter's generic strategies, and growth strategies (horizontal and vertical integration). It critically assesses tactics and analyzes the company using tools such as PESTEL and SWOT analyses. The report also addresses challenges faced by the company, including criticisms from various stakeholders. The conclusion summarizes the key findings and the references used in the report are listed at the end. Overall, the report offers a detailed evaluation of Coca-Cola Amatil's strategic approach to achieve its objectives and maintain its market position.

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Strategic Development within an organization.
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Table of Contents
Executive summary........................................................................................................................................2
The Coca-Cola Amatil organization..............................................................................................................3
The vision of the organization...................................................................................................................4
Current strategy used.....................................................................................................................................5
Strategic type involved..................................................................................................................................6
M. Porters Generic Strategies....................................................................................................................6
Growth strategies (Horizontal and vertical)...................................................................................................7
Criticized Tactics.......................................................................................................................................7
Analysis Tools of the Coca-Cola Amatil Company......................................................................................9
PESTEL Analysis..........................................................................................................................................9
SWOT Analysis...........................................................................................................................................10
Conclusion...................................................................................................................................................12
References....................................................................................................................................................13
Executive summary.
Strategic development in an organization consists of a plan which highlights all the duties of the
organization and their respective roles (Waddock & Post, 1991). The program explains what is
expected of the stakeholders towards the achievement of the organizational goals. The plan is
developed by the management of the organization, and its primary role is the realization of the
organization future to propel outstanding performance and ensure that the firm exists in future. A
strategic plan is developed, and it does include not only the goals but also the processes of

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ensuring that the objectives are achieved successfully. This paper introduces us to Coca-Cola
Amatil Company and the strategic development plan laid by the organization towards the
achievement of the organization's goals. The company deals with production and supply of non-
alcoholic beverages (Kanter, 2003). Today, the firm avails its services to many countries, but it
was not the case at the beginning. The operation began in one country but due to the formulation
of strategic development plan the company has achieved a market in various countries (Balmer,
2001). The company is amongst top global countries since their products are available and used
globally. This paper, therefore, evaluates the Coca-Cola Amatil Company and analysis the
company development strategies in details. Various processes pertaining strategic development
within the organization are addressed accordingly. Different analysis methods like the SWOT
analysis, PESTEL analysis, and Mr. Porters five model analysis are discussed concerning the
organization. Challenges facing the team as it makes steps towards achievement of the objectives
are highlighted which includes criticism from the society.
The Coca-Cola Amatil organization.
The Coca-Cola Amatil (CCA) is based in Australia, and its services are mainly conducted in the
Asia-Pacific region. The Coca-Cola Company has highly developed from the last decade to a
global business that operates on a local scale. The firm has over 15,000 employees, and their
products are approximately consumed by more than 265 million consumers. It operates in six
countries which are New Zealand, Australia, Samoa, Papua New Guinea, Indonesia, and Fiji
(Adler & Gundersen, 2007). The head office of the company is located in Sydney. Currently, the
company can boast to be the leader of production and supply of non-alcoholic beverages. The
company has more than 250 bottling partners worldwide. However, the firm is not a single entity
since it does not own all the bottling partners. The bottling partners have established a close

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relationship with the customers mostly restaurants, movie theatres, groceries and convenience
stores (Johnson & Peppas, 2003). The partnerships have been developed to ensure that the
company acquires many customers both directly and indirectly. As a result, the company has
developed gradually and there exist evidence that the corporation may still perform better in
future. However, the company is facing criticism from the community which might end up
interfering with its sales, but there is an opportunity of curbing this in early stages to ensure that
the performance of the firm is not affected.
The company is based on four pillars which consist of the well-being, environment, the people
and the community (Schwartz & Davis, 1981). The four pillars act as stakeholders and each, and
everyone is expected to play their respective roles so that the objectives are achieved and giving
the firm a chance to exist in future.
The vision of the organization.
The vision of the organization is based on the pillars making up the team.
1. Providing exceptional brands to the customers who are within arm’s reach.
2. Driving productivity and acquiring a lean, agile cost structure.
3. Value creation with partners based on shared purpose.
4. Making a distinctive and positive contribution to the place we reside.
5. Delivering attractive and sustainable returns to the stakeholders.
6. Providing products of high value and appreciating the growth of the customers.
Concerning the vision, the company has currently laid down strategies to ensure that the vision
becomes a reality. The following are the current strategies adopted by the firm:

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1. Improvement of the beverage products and the introduction of new improved brands
(Quelch & Hoff, 1993).
2. Improving the production process through the incorporation of modern technology.
3. Assisting the partners in ensuring that they give the best t the public.
4. Launching projects to protect the environment and ensuring that their products are not
harmful to the environment as well as the production process.
5. Stakeholders are currently getting improved returns on shares compared to the past.
6. The firm is now keen on producing products of high quality and assisting the customers to
grow economically.
Current strategy used
To enable the company focus on driving the revenue and the profit growth, it is utilizing
segmented revenues growth strategies all across the business in ways that are varied by the type
of market. Additionally, the company has aligned their worker's incentive accordingly. When it
comes to the emerging market, the focus has been primarily on the increased volume, keeping
the beverage affordable as well as strengthening the foundation of the future success (Adler and
Gundersen, 2007). When it comes to developing the market, the company has relied on the price
vs the mix and improving the profitability through the provision of smaller packages and more
premium packages. Creation of the value for the organization and the customer looks very
different in different countries, and the company has done a good job when it comes to
segmenting on the markets in order to drive the revenue growth (Ouppara and Sy, 2012). There
are few industries which have changed more rapidly over the past few years in the non-alcoholic
beverage industry. There has been evolution when it comes to the taste and preferences which

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have created innovation and this industry, the company has taken various steps to enable them to
reshape the business (Ouppara and Sy, 2012). They looked hard to their operating structure and
identified areas where there could be faster growth and then removed a layer of the functional
management and connected it to the regional business units directly to their headquarters in
Australia.
Strategic type involved.
To ensure proper implementation of policies to achieve the objectives the firm has adopted four
types of strategies including the contingency approach, growth strategies, M. Porters Generic
Strategies and Strategic Partnership.
M. Porters Generic Strategies.
M. Porter's generic strategies are based on five force model (Deshpande & Webster, 1989). The
model has performed well in Coca-Cola Amatil Company in the analysis of its strategies towards
positive performance. The model aims at measuring the competitiveness of market deriving its
attractiveness. The following is a five forces analysis of the Coca-Cola Amatil company about
the Coca-Cola brand.
The threat of new Entrants.
For one to venture in the beverage industry, the barriers are relatively small. The company is
facing competition since there are an increasing amount of new brands but the firm enjoys
various advantages (Kaplan, 2007). The company remains superior in the market irrespective of
the strategy used by the competitor since Coca-Cola is a strong brand in the market. The firm,
therefore, seems to possess a medium pressure from the threat of new entrants.
The threat of substitute products.

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Currently, many brands of beverage products are available in the market. It consists of juices,
sodas, and various energy drinks. Most brands produced by the Coca-Cola Amatil company do
not have a unique flavor, especially between the Coca-Cola brand and Pepsi. The firm, therefore,
has medium to high pressure on the threat of products substitute.
Bargaining power of buyers.
The bargaining power of buyers is low in Coca-Cola Amatil Company. It is because the
customers have no pressure while purchasing their products.
Bargaining power of suppliers.
There is low pressure on suppliers bargaining power this is because the Coca-Cola Amatil is a
large company and has a broad range of customers.
Rivalry among existing firms.
The competition amongst existing companies is high. It is because the company does not
produce unique products. In the market, there are other soda brands from other enterprises which
are popular like Dr.Pepper. It, therefore, results in stiff competition from its competitors.
Growth strategies (Horizontal and vertical)
Vertical and horizontal integration is a business strategy used by firms to maintain their position
amongst competitors (Kong, 2008). Vertical integration takes complete control over one or more
stages in production or the distribution channel. Horizontal integration involves the acquisition
of business activities which are at the same level of the value chain in similar or different
industries. The Coca-Cola Amatil company heavily relies on vertical integration which aims at
eliminating intermediaries who make products reach the final consumer at relatively high prices.

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The methodology enables the firm to compete effectively since the prices of the products
remains under control. The method also ensures that customers are protected against high prices
of the products.
Criticized Tactics
To achieve some objectives and enjoy the market positioned currently owned by the Coca-Cola
Company the journey has not been easy. The company has faced a lot of criticism from the
public. Different types of stakeholders including the employees have criticized the firm
achieving the goals a dream. As a result, the company ended up making unnecessary losses for
some consecutive years.
The community.
The company offers products to the different communities including Indonesia and New
Zealand. The communities have formed partnerships with the company to provide their products
to the customers (Dyson, 2004). Criticisms were witnesses from the partners claiming that the
pricing of the goods should be similar since the products are the same. The criticizing individuals
were aware that it was not possible due to economic situations of different countries. The firm
could not make the estimated sales, therefore, the strategy failing.
Customers.
Customers claimed that the company is not concerned with improving the quality and taste of the
brands. A big percentage of the consumers claimed that they could not identify the difference
between the Coca-Cola brand and Pepsi (Dyson, 2004). It is true that there is no flavor difference
between the two but the customers should not criticize since the company ended up losing many
customers.

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Suppliers.
When the company adopted vertical integration, the supply chain had to be minimized. The
vendors initially involved in the provision of the products greatly criticized the company
claiming that the company did not mind their welfare since they were left without any source of
income. The implementation of the strategy was meant to protect the customers and improve the
company’s picture yet the eliminated middlemen could not understand.
Employees.
Up to date their still existing employees who criticize the company. The employees claim that
the management does not put into consideration the well-being of the employees (Amit &
Schoemaker, 1993). It has been facilitated by low-income margins reported by the employees.
Due to such criticisms, the company has performed unexpectedly. Although the strategies are
implemented accordingly concerning the vision, the firm has not yet reached where it intends to
be.
Analysis Tools of the Coca-Cola Amatil Company.
PESTEL Analysis.
Political Factors.
The company is affected by various political factors which affect its operations. Such factors
include the level of political stability in the operational countries, impact of international
pressure groups and domestic market lobbying groups and the attitude of the government

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towards the company operations. Political instability in different countries like Turkey has led to
banning of Coca-Cola products. Political factors significantly affect the operation and the
performance of the enterprise.
Economic Factors.
The company is also affected by various economic factors which are beyond the firm’s control.
These include the level of economic growth, tax rates, interest rates, labor costs and currency
exchange rates. All these factors significantly affect sales of the company.
Social Factors.
There have been a lot of health concerns involving the beverage products produced by the Coca-
Cola Amatil company (Child, 1972). The carbonated drinks are perceived to be harmful to
health. Globally, the consumption of soft drinks is declining every day. The company is facing a
big challenge as far as this is concerned, and an urgent action long-term solution is needed.
SWOT Analysis.
Strengths.
The company enjoys various advantages including brand equity, business valuation, vast global
presence, fantastic marketing strategies, and largest market share, distribution network and
customer loyalty (Child, 1972).
Weaknesses.
In its operations, the company experiences some shortcomings. The weaknesses include product
diversification, water management and inability to produce healthy beverages.

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Opportunities.
Currently, the company possesses various opportunities. Amongst them are diversification of
products, production of packaged drinking water, nations are continuously developing and
having a market with minor selling products (Andini & Simatupang, 2014).
Threats.
The company also has threats which should be addressed as soon as possible. Such risks include
raw material sourcing and indirect competition.
The organization culture.
Themes of the organization.
1. Lead- the group aims at strengthening its leadership.
2. Execute – delivering a step change in productivity and execution.
3. Partner – Ensuring good relationship with the company and partners.
Core values of the organization.
1. Ensuring transparency and openness in all transactions.
2. Owning the whole enterprise and controlling the outcome.
3. Laying adequate strategies for today and tomorrow.
Leadership style.
The organization is headed by the Coca-Cola Amatil Board which forms the sustainability board
of committee. There is the Amatil Group of Leadership team which comprise of human

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resources, public affairs and communication and the procurement. The businesses are then
formed and then lastly is the supply chain, Human Resources and Public affairs (Baghai et.al,
1996).
Conclusion.
Strategic development can be initiated by developing a plan. The plan should highlight the goals
and the way they can be achieved clearly. The Coca-Cola Amatil is a firm which has witnessed
continuous development over time. The company is amongst the companies operating globally.
The performance can be associated with utilizing the existing opportunities well and each and
every one playing their roles accordingly. For any firm to perform all a good strategic plan has to
be developed and implemented accordingly.

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Cengage Learning.
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management journal, 14(1), pp.33-46.
Andini, R.A. and Simatupang, T.M., 2014. A process simulation of inventory planning and
control for Minute Maid Pulpy at Coca-Cola. International Journal of Logistics Systems and
Management, 17(1), pp.66-82.
Andini, R.A. and Simatupang, T.M., 2014. A process simulation of inventory planning and
control for Minute Maid Pulpy at Coca-Cola. International Journal of Logistics Systems and
Management, 17(1), pp.66-82.
Baghai, M., Coley, S.C., White, D., Conn, C. and McLean, R.J., 1996. Staircases to growth. The
McKinsey Quarterly, (4), pp.39-41.
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Dyson, R.G., 2004. Strategic development and SWOT analysis at the University of
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