Strategic Infrastructure Asset Management for Coca-Cola & Sugar

This report provides a strategic analysis of the infrastructure asset management of Coca-Cola and Sunshine Sugar following their collaboration. It begins with background information on both entities, highlighting Coca-Cola's acquisition of Sunshine Sugar. The report identifies key context issues su...Read More

STRATEGIC INFRASTRUCTURE
ASSET MANAGEMENT

TABLE OF CONTENT

Background
In the current assignment, two entity’s financial and non-financial structures are
evaluated as both this firms collaborated with each other to form a new enterprise. Coca-Cola
is an Australian based entity deals in providing beverages as according to the different needs
of its customers as various products offered by this entity includes diet coke, so sugar coke to
cater the needs of all the individuals (Benedict., 2018). It is a public limited company who
acquires sunshine sugar entity to include the raw materials of this entity in the manufacturing
of its current products to decrease the cost of using the raw materials from outside its entity.
This step taken by an entity will be beneficial for the firm to decrease the overall prices of its
products and services as due to this the operational costs incurred by an entity get reduces.
Sunshine sugar (Sunshine sugar, 2018) is an entity which emphasizes producing low GI sugar
which is also suitable for all the diet conscious people and diabetic people who did not prefer
sugar in its daily intake (Mejuto, Chalmers, Gilbert and Bentley, 2018).
Identifying Context Issues
There are various issues comes in the bigger picture while analyzing the existing
businesses of coca cola and sunshine sugar entity after coca-cola acquire sunshine sugar are
mention as below:
One of the opportunities finds out in analyzing the consolidation of both the entities is
to secure the supply chain management of coca cola (Gertner and Rifkin, 2018). By acquiring
the sunshine sugar, the logistics channels of an enterprise will get improved which requires
the special attention of an entity owner. This will also help in increasing all the sales and the
revenues of an entity (Coca-Cola Amatil too slow to lose its sweet tooth, 2017).
Coca-cola (Coca cola, 2018 )is struggling with the issue of using the high level of
sugar founds in its carbonated drinks which is contracting the overall market share of an
entity in Australia as a majority of people are diet conscious (Serôdio, McKee and Stuckler,
2018).
Resource Requirements
Various resources are utilized in performing an asset reviewing plan which helps in
identifying all kinds of risks faces by the collaborative entity (Cooke, 2018). Financial
resources are one of the important resources required to find the present as well as future
business requirements (Popovič, Hackney, Tassabehji and Castelli, 2018). Human resources
are an important resource for an employee is a true representative of an entity which acts on
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the behalf of the firm by catering all the needs and the expectations of all the customers
(Heald, 2018). Senior asset manager will review the existing assets by prioritizing them into
various categories to use this information in auditing all the present assets held by an entity.
Information resources are used to consider them as legal evidence.
Research methodology
Risk management approach is used to identify and tests all the risks incurred or likely
to be occurring in the future as the motive of this approach is to identify all of them in the
current period. This risk matrix will use a proactive strategy, under which the focus of an
entity lies on prioritizing all the risks occur in an entity.
Risks High Medium Low Solution
Supply chain
issues
Consolidation of
an entity by
capturing the
previous supply
chain method
adopted by the
acquiree firm to
boost the overall
efficiency of the
existing entity.
Financial risks Reviewing the
financial
capability of an
entity by using
balance sheet
analysis tool
Market Risks Market tracking
report generated
to keep a track
on all the
business
activities and the
entire market
review.
Liquidity risk Petty cash and
cash in hand
balance
increases to deal
with the future
liquidity issues
especially when
acquiring an
entity like
sunshine sugar.
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Operational
risks
Operational
management
approach is used
under which all
the daily routine
business
operations are
reviewed by the
manager.
Decreasing
performance
Creating
budgeting
forecasts
Review Schedule
Figure 1 Gantt chart
Key areas of concern
This is one of the steps in conducting an asset risks review plan which focuses on
identifying all the areas of the concern on which an entity will pay a special attention to
eradicate the same to enhance the entire performance of the firm are mention as below:
Liabilities of acquiree firm- All the liabilities whether short-term and long-term liabilities of
the sunshine sugar are considered in this step as all these will be borne by coca- cola. All
these liabilities are recognized by analyzing the financial statement of the acquired firm to
pay off on time to strengthen the financial position of an entity.
Goodwill- Nowadays, coca cola is suffering from the lower market share in the external
market due to the increasing proportion of sugar in all its drinks as the majority of the
customer base of coca cola is diet conscious. All these market pressures impose on an entity
will get reduces by acquiring the sunshine sugar which is currently producing Low GI sugar
which is prepared in an eco-friendly way that helps in maintaining the health of all its
customers.
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Anticipated findings
Sunshine sugar entity is recommended to take care of its current assets by following
an appropriate asset management approach to boost the overall performance of its new
consolidated entity. The aim of this approach is to rectify all the current weaknesses lies in
the present system as this will helps in modifying the business operations by emphasizing on
the new and improved methods to get rid of all the business issues.
Infrastructure asset management approach is suitable for the sunshine sugar which is
based n the three pillars such as financial, economic and engineering criteria’s are used to
manage all the tangible assets used in an entity (Anderson and et..al., 2018). This method is
considered as a cost-effective measure which emphasizes on saving all the costs incurred
by an entity by using optimum utilization approach under which lesser input is used to
generate the high volume of output (Hendricks and et.al., 2018). The designing of the whole
system is such that it focuses on the eco-friendly manufacturing of the final products to
sustain all of them with an entity for a longer period of time. Sunshine sugar’s vision is to
create low GI sugar to attract the attention of all the diet conscious people and all the diabetic
patients who can’t use the normal sugar can use this particular sugar.
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REFERENCES
Books and journals
Anderson, D. R., and et..al., 2018. An Introduction to Management Science: Quantitative
Approach. Cengage learning.
Cooke, L., 2018. Resources for gender, business and enterprise. Gender, Business and
Enterprise, p.149.
Gertner, D. and Rifkin, L., 2018. Coca‐Cola and the Fight against the Global Obesity
Epidemic. Thunderbird International Business Review. 60(2). pp.161-173.
Heald, M., 2018. The social responsibilities of business: Company and community, 1900-
1960. Routledge.
Hendricks, M. D., and et.al., 2018. The development of a participatory assessment technique
for infrastructure: Neighborhood-level monitoring towards sustainable infrastructure
systems. Sustainable Cities and Society. 38. pp.265-274.
Mejuto, G., Chalmers, S., Gilbert, S. and Bentley, D., 2018. The effect of ice slurry ingestion
on body temperature and cycling performance in competitive athletes. Journal of thermal
biology, 72, pp.143-147.
Popovič, A., Hackney, R., Tassabehji, R. and Castelli, M., 2018. The impact of big data
analytics on firms’ high value business performance. Information Systems Frontiers. 20(2).
pp.209-222.
Serôdio, P. M., McKee, M. and Stuckler, D., 2018. Coca-Cola–a model of transparency in
research partnerships? A network analysis of Coca-Cola’s research funding (2008–
2016). Public health nutrition. 21(9). pp.1594-1607.
Online
Benedict B.., 2018.Coke’s big issue with its no sugar drink. Available through:
<https://www.gladstoneobserver.com.au/news/coke-no-sugar-is-supposed-to-be-replacing-
coke-zer/3341297/guw1j6 > [Accessed on 29th July 2018].
Coca cola, 2018. Available through: <https://www.coca-cola.com.au/en/home/> [Accessed
on 29th July 2018].
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Coca-Cola Amatil too slow to lose its sweet tooth, 2017. Available through:
<https://www.afr.com/business/retail/cocacola-amatil-too-slow-to-lose-its-sweet-tooth-
20170311-guw1j6 > [Accessed on 29th July 2018].
Sunshine sugar, 2018. Available through: <http://sunshinesugar.com.au/> [Accessed on 29th
July 2018].
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