Coca-Cola Amatil: Executive Summary of Strategic Planning Report

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This report provides an executive summary and comprehensive analysis of Coca-Cola Amatil's business strategies. It begins with an introduction outlining the company's mission, vision, and core competencies, followed by an examination of past and current strategies, including contingency and growth approaches. A detailed SWOT analysis assesses the company's strengths, weaknesses, opportunities, and threats, while a PESTLE analysis evaluates political, economic, social, technological, legal, and environmental factors impacting the business. The report also critiques past strategies, addresses organizational culture, and concludes with recommendations for improvement. This report is designed to offer a complete picture of Coca-Cola Amatil's strategic planning and its impact on performance and growth.
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INTRODUCTION TO
MANAGEMENT
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EXECUTIVE SUMMARY
In the present report it will be discussed about the company and its strategies to increase
the growth, customer satisfaction, rtc.This plan also include particular portfolio of enterprise.
This plan is adopted by coca cola Amatil in order to differentiate its products from the product of
its competitors. This strategy emphasizes on increase in range of affordable packs in market and
use of innovative marketing methods to attract more customers and retain existing customer.
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Table of Contents
INTRODUCTION ..........................................................................................................................1
Task 1...............................................................................................................................................1
Task 2...............................................................................................................................................3
Criticism of the past strategies....................................................................................................3
task 3................................................................................................................................................4
Task 4...............................................................................................................................................6
Organisational culture within the organisation...........................................................................6
Conclusion ......................................................................................................................................6
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INTRODUCTION
Strategic planning is an organisational process for making decisions on allocating its
resources to pursue this strategy in the organisation. Here, the organisation 'Coca Cola Amatil' is
taken which the biggest bottler of non alcoholic ready to drink beverages. Its headquarter is in
New south Wales, Australia. In this report mission, vision, competences, pestle and many more
approaches will be applied (Anderson and et.al., 2015). The criticism of company with different
analytical tools will be explained with different leadership styles and organisational culture will
be discussed.
Task 1
Mission : To refresh the world in mind, body and spirit. To inspire moments of optimism and
happiness through the brands and the actions.
Vision : Every day the company creates a million of moments of happiness and possibilities.
Core competences :
sources : Nekvapil and et. al., 2015
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Illustration 1: Core competences :
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Business skills : the company 'Coca Cola Amatil' has good power of arranging and
managing funds for the safe future of the organisation. There is a huge demand of beverages in
the country so, there is an increase in profitability of the firm. The organisation has made polices
and rules and regulations which are to be followed by the employees as well as by the customers
(health & safety policies).
Interpersonal skills : the manager of the company Coca Cola Amatil should have the
power or be influenceive enough to motivate his employees for the further work or to make a
successful strategic plan. He should be able to negotiable with the suppliers to get the raw
material at a low cost. The main quality a leader should have is that he should very good in team
building by listening to every employee's suggestion.
Personal skills : the employee's should have the innovative thinking with the changing
demands and trends to increase the profitability of the company Coca Cola Amatil. There should
be a better and clear communication among the employees and the lower level to make the work
easier with the positive result (Combe, C., 2014.). Employees should be motivated enough to
motivate others for the continuous improvement in the product.
successful strategies deployed in the past :
a) Contingency Approach : this is also known as the situational approach. This concept was
followed by the company ' coca cola Amatil' in past which lead the company to gain a huge
profit. This approach works according to the current situation in the company to fulfil demands
and trends of the market.
b) Growth Strategies (vertical / horizontal) : the acquisition of the business activities that are at
the same level of the value chain in similar or different industries, this strategy was used by the
company coca cola amatil to increase the value of chain and to improve the business activities.
current strategies :
a) Contingency Approach -the contingency approach of organisation includes using particular
style of branding, marketing, packing methods etc. This plan also include particular portfolio of
enterprise. This plan is adopted by coca cola Amatil in order to differentiate its products from the
product of its competitors. This strategy emphasizes on increase in range of affordable packs in
market and use of innovative marketing methods to attract more customers and retain existing
customer. This strategy aims at changing the consumer preference and gaining their loyalty
towards brand of business entity.
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b) Growth Strategies (vertical / horizontal)- the main aim of coca cola Amatil is to increase its
customer. The Coca cola Amatil firm is using vertical growth strategy to increase its sale. But it
has analysed that vertical growth strategy has limited preview. So the coca cola Amatil
organisation has adopted the strategy of horizontal growth as it assists the industry in
maintaining its leadership position in soft drink industry. These strategies are being adopted by
firm by considering its competitors plan.
c) Emergent Strategies-refers to the realized strategy of Coca cola Amatil industry. The
emergent strategy of coca cola include enhancing customer serving capabilities, to serve in such
market which provides opportunities for customer diversification and enables organisation to
gain competitive advantage (Nekvapil and et. al., 2015). This plan of business unit also include
taking advantage of large scale operation by reducing cost of manufacturing and increasing profit
margin as well as enhancing distribution capabilities.
d) Strategic Partners- This strategy of coca cola Amatil industry includes sharing vision of
success and communicating objectives of organisation with all members in orders to achieve
their contribution in fulfilling various goals for enterprise. It also includes joint planning by
partners for enhancing profitability, sustainability and growth. The feature of this strategy is that
it provides opportunities for sharing of risk and rewards among partners.
Task 2
Criticism of the past strategies
Coca cola is one of the leading company all around the globe and has attracted huge
consumers by serving the best quality products under variety of designs and tastes. Company has
adopted contingency and growth approach in achieving its expansion. However, cited firm has
even faced many controversies under their formulated strategies. Some of these are :-
ï‚· Product safety and environment :- water is the most effective factor which creates huge
controversies under business environment and even raises questions under law. Dasani
product which has been introduced under different segments have also faced numerous
disputes regarding environmental factors (Combe, C., 2014.). Such issues enlightened
that company is affecting natural resources with an aid to increase its growth or revenue.
ï‚· Human rights :- legal actions are established among cited company with an obligation
that it is reducing rights of human by establishing huge amount of work and pressure
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among their labours. Further, they depict that firm does not provide effective safety and
security among their workers. Additionally, it showcases that consumer's protection as
well as competitive advantages are affected at huge extent. Such actions affect its
productivity and image among target consumers (Anderson and et.al., 2015). Not only
this, it even raises cited company's competition among its rivalries.
task 3
Swot analysis of Coca Cola Amatil
Strength:
1. Coca Cola amatil has high growth rate and
high market share.
2. The brand image of organisation.
3. Its distribution and sales network.
Weaknesses
1. Taxes liabilities on firm.
2. Inappropriate marketing strategy.
3. Heath issues.
Opportunities
1. The company has opportunities to expand its
core business.
2. The Coca Cola Amatil has the opportunities
to serve global market (Berg and et.al., 2015).
3. Enterprise is having opportunity to introduce
more flavours in drink.
4. Growing demand
Threats
1. Bargaining power of consumer may have
influence on the prices of company product.
2. Increasing health consciousness among
people.
3. Increase in cost of production.
4. Stiff competitors.
The conclusion is that there are various threat that the Coca cola Amatil company has to
face but appropriate strategies used by organisation can assist them in reducing various threats.
Proper utilisation of its strength can help coca cola Amatil industry in overcoming its
weaknesses. There is potential in organisation that it can enhance its strength.
PESTLE Analysis
Political factors-there are various political factors that may have direct influence on
various activities of firm and these elements may have impact on firm growth and sustainability.
Political factors include government rules and regulation, conduct of conduct, etc. The changes
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in law ,may restrict the distribution of drink by Coca Cola Amatil industry. Code of conduct by
political parties may restrict enterprise for using particular method of advertisement.It is required
by organisation to meet such regulations in order to avoid effect of these factors on its business
operation.
Economic factors-Coca Cola Amatil industry serve their drinks in different countries
where people belongs to different level of income. It is essential for Coca cola Amatil firm to
changes or update the way to handle its clients by developing innovative flavours, bottles to
attract customer. The economic condition of the country may have influence on financial
condition of coca cola Amatil firm. The Coca cola Amatil business unit can use dynamic pricing
strategy in order to avoid effect of these elements on its business.
Social factors- Various social factors such as health awareness, trends, needs of society,
demand etc. have impact on the productivity as well as profitability if organisation. It is required
by coca cola Amatil industry to give proper response to these people of society. The coca cola
Amatil business unit can develop corporate social responsibility strategy in order to fulfil its
responsibilities towards society. Health awareness among people can effect the coca cola Amatil
company performance in order to avoid this issue the organisation should develop healthy drinks.
Technological factor-The technology is only tool which assists organisation in
differentiating its product from that of its competitors (Berg and et.al., 2015). Technology has
also impacted on the production capacity of business. Coca Cola Amatil can use advance
technology for producing good quality and quantity of drinks.
Legal Factors-Coca cola Amatil industry is retaining its all rights related to its business
activities and product. The various legal factors include laws related to employment, consumer
law, heath and safety law etc. may have impact on business activities. Addition to these laws it is
required by coca cola Amatil company to meet the requirement of environmental law. To avoid
bad consequences of this law's industry can use recycling technique to recycle waste produce by
them. Its various material waste such as bottles and water can be easily recycled.
Environmental Factors- Environmental factors include climate, availability of various
resources, environmental laws. The production in coca cola is affected by water accessibility.
Water as a re source is very important for development of soft drinks. In order to eliminate such
issue the company can carry its manufacturing process in other country. Coca cola Amatil
organisation has to fulfil the requirement of environment law in order to reduce their impact on
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business activities. Coca cola Amatil can expands its core business in developing countries as
there coca cola Amatil would have to face less competition.
Task 4
Organisational culture within the organisation
Evaluation of the current culture and performance in the company coca cola Amatil has
resulted in increase in profitability, customer satisfaction and the growth of the organisation.
Clarification of the internal vision of the organisation should be clear because it helps the
employees the achieve the aims and the goals on time to avoid the customer loss of coca cola
Amatil. The values and expected behaviours should be clarified, the behaviours of the customer
should be noticed and worked upon to retain the customers for a longer time. The strategic
priorities should be clarified timely, the strategies should be priorities to make the improvements
as required to make the strategies stronger of the company coca cola Amatil. Set a team to search
the smart goals of an organisation Management of the goal and there priorities Building
motivation. The clear communication among the employees helps to make the organisation
better and easier. The two way communication helps to understand the organisational structure
of the company coca cola Amatil. Management of communication habits and routines there
should be clear communication among the employees for the proper motivation, encouragement
and the feedback should be taken by the customer to avoid and overcome the issues faced by the
customers of coca cola Amatil. The proper evaluation the problem helps the company to
improve the performance of the employee and it also makes sure to get the rapid growth of the
company coca cola Amatil. The profitability, and the customer satisfaction is also evaluated by
the performance of the comp[any in the market. The innovation and trend of the market plays an
important role to increase the customers.
Conclusion
From the above report it can be concluded that, the company coca cola Amatil has
taken various Strategic Development within the organisation. The mission, vision, core
competences, successful strategies deployed in the past and the current strategies is been
discussed. The past strategies and tactics were criticised and discussed in detail. The SWOT,
PESTLE, Porter's five models are discussed above. The organisational culture, core values and
the competence of the company according to the leadership style is discussed in detail.
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References
books and journals
Anderson and et.al., 2015. An introduction to management science: quantitative approaches to
decision making. Cengage learning.
Combe, C., 2014. Introduction to management. Oxford University Press.
Nekvapil and et. al., 2015. An introduction: Language management theory in language policy
and planning. International Journal of the Sociology of Language, 2015(232), pp.1-12.
Berg and et.al., 2015. An introduction to Management of Technology pedagogy (andragogy).
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