Coca Cola is the company that serves the whole world with its products that is soft drinks. It is the very popular brand of soft drinks. The company has started its operation in Australia in the year of 1938. The Australian population is becoming addicted to this drink and the consumption in of the same in increasing day by day in this area (Mahesa and DJASTUTI, 2010). In present times, Coca Cola along with its bottling partners Coca cola Amatil is conducting the business practices in Australia.
As far as the mission of the company is consider, it has been analysed that company has divided its mission into their segments. First is about refreshing the minds of the world in spirit, body and mind. Second is related to creating value and making a difference and the last one is related to optimism and happiness through the brand (Jones and Reid, 2010).
To achieve the mission of the company, it has set up some goals that are the visionary goals related to people, portfolio, partners, planet, profit and productivity. Inspiring the people, offering the brand portfolio, wining network partners, being sustainable and maximizing long term profits for shareholders are the elements of the vision of the company (Ouppara and Sy, 2012).
Core competencies are the knowledge and the skills that the company have that act as its strength. As far as Coca Cola Amatil is considered, it has been analysed that the core competencies of the company lies in its leadership, collaboration approach, integrity, accountability, passion, diversity and the quality of the products the company offers to the market.
As far as the earlier times are concerned, it has been analysed that Coca Cola Amatil has used various corporate and business strategies to make improvements in its process and to increase the sale of the company (Andini and Simatupang, 2014). Some of the earlier strategies of the company have been discussed below:
Low cost leadership: it is the strategy that has been used by the company since the time it has entered the market. The company is serving the products to the market with very low prices comparatively.
Product differentiation strategy: it has been analysed that the company using this strategy since its establishment so as to be unique in the market (Gunja and Brown, 2012). There are many companies who are producing the similar products in the market and thus differentiation is required to be opted by the company to have competitive advantage over the other competitors.
Stability strategy: It is the strategy that allow the company not brig nay of the change in the process. This strategy is generally used by Coca Cola Amatil in the case when the growth or any of the expansion of the company is not found to be feasible (Thow, Quested, Juventin, Kun, Khan and Swinburn, 2011).
All the above strategies were the strategies that has been used by the company in kits earlier times. With the innovation and advancement along with the change in demands, new strategies were launched by the company in recent years.
Leadership position strategy: this is the first pillar of the new strategy of the company that focuses on leading the entire brand in the market of the similar industry. This strategy suggests that the company focuses on weighted up level of innovation in the process and the marketing techniques.
Customer’s service and diversification strategy: It is the strategy that deals with strengthening the customer service capability (Karnani, 2014). Along with this, the company also focuses on low cost manufacturing so that the customers can be served with low prices.
Partnership of collaboration strategies: It is the strategy that deals with aligning the objectives of the company with other partners such as Coca Cola.
Innovation strategies: It is the strategy that deals with the expansion of use of industrial automation at its manufacturing sites and warehouses at Australia. The implementation of this strategy helps the company to make its process improved and speedy thus giving an additional advantage to the company to compete the cycle early (Powell and Gard, 2015).
Above strategies are the current strategies of the company which the company is concentrating to achieve the competitive advantage over the other competitors.
Marketing campaign criticized: CCA has faced criticism over its marketing campaign in which a milk product of the company has been marketed with the help of objectifying the women which is absorbed to be much unrelated. Social media as well, most of the people have criticised this advertisements and thus it has been banned after that (Ghosh, 2010). It has been said that there is no sense objectifying the women in the ads of milk products. Using women on this ad is really disgusting from the part of the audience and they have not proposed this marketing campaign of the company. This has also affected the image of the company in the negative manner.
Water and health issues: the company is also facing criticism because of the use of water. The company is facing the water scarcity issues and also observed that the company is using pesticides in water that has been using in manufacturing of the products. This has severe negative health impact on the people using the products (Ludwig and Nestle, 2008). The level of carbonate in the soft drinks has also been increased that is affecting the heath of the customers very badly. As the company is facing water shortage issues so it is not providing healthy drinks to the customers and increased the level of carbonate in them which develops the condition of obesity and overweight amongst the people who are using such products daily.
SWOT analysis of the company helps in analysing the internal strength and weakness of the company. It also facilitates to analyse the industrial situation by identifying the opportunities and the threats in the market.
Strengths:
Leader in soft drink:
As per this analysis of the above figure, it can clearly state that coca cola is the market leaders in the company. The company is serving large amount of customers in all over the world along with Australia.
Efficient delivery system of the company: It has been analysed that the delivery system of the company is so much efficient in nature. This may be because of les number of mediators in between the manufacturer and the customers (Harris, Pomeranz, Lobstein and Brownell, 2009). The products of the company are delivered directly to the point if sales from bottling warehouse that eliminates the time of mediators are interfering.
Just in Time approach: JIT is the approach that has been used by the company. It is the approach that helps the company to reduce the cost of inventory and storage. In this approach the products are manufactured or transferred to the warehouse only at the time they are required and not before that.
Weaknesses:
Concentration on youth: It has been analysed that the company is only focusing on the market of young people and portraying their brand as the brand or youth. This may restrict their market or the rage of customers for their products (Clover, 2007).
Incapable of meeting the changing demands: It has been analysed that the soft drinks industry is bringing new products to the market by many variation but it has been observed that CCA is unable to meet the demands of the customers and also unable to manufacture the products just as Coca cola.
Threats:
Health concern: As observed that most of the people these days are changing their priorities in terms of drinks. They prefer to drink the products that are healthier rather that soft drinks having lot of carbonate in them (Pearce and Conger, 2002).
Competitors: the industry like soft drinks is so much saturated and becoming homogenous as well. All the companies are delivering the same kind of products with less variation in the taste and thus create tough competition to be unique.
Opportunities:
Diversification: It is the opportunity that may allow the company to diversity the products range. The company can enter the new products rage that is linked with soft drinks to be associated with the industry only.
Brand extension: the company can also go for introducing new brand rather than using the name of Coke again and again for different products. This may enhance the business of the company.
It is the analytical technique that helps in analysing the impact of various factors on the functioning of the company and the industry. Some of the factors and their impact on CCA are discussed below:
Political factors: political factors are those factors that interfere on the company’s functioning to great extent (Hoch and Kozlowski, 2014). It has been analysed that government has interference in this company because the company deals with beverages and impact of which affect the health of the people.
Economic factors: Australia is the country with stable economy thus it maintains the purchasing power of the people. Variation in the earning and the tax rate of the economy may affect the purchase of products in future.
Social factors: It has been analysed that Australians are very fond of fast food and fast food requires soft drink as the associated products in a meal thus taking soft drink in their meal is necessary for them. Changing the preferences of so one the people for being health concern may affect the sales of the products.
Technological factors: technology is the major part of the company as it is the manufacturing firm. Bottling of the products and packaging require the machinery that needs to be updated according to the time (Mihalache, Jansen, Van den Bosch and Volberda, 2014).
Legal factors: the company has patented all its rights and thus never engaged in any of the illegal practise but as the company is dealing with beverage predicts thus it is required to maintain the legal frameworks and foundation at the time of manufacturing as well as delivering the products.
Environmental factors: Issues of water scarcity, sustainability and other affect the image of the company and also the sale of the firm. It is also affecting the quality of the products served by the company. Change in climate may restrict the customers to buy the products like soft drinks as it is necessary to have these drinks with low temperature.
Alison Watkins is the CEO of the company who is dealing the company with the group leadership style. She focuses on maintaining the team leadership in the firm so that the people can work in a team effectively (Ashley, 2017). As the company values suggests that it believes in team leadership, diversity, collaboration, passion etc. in their work. It has been analysed that the CEO motivate their employees by giving value to what they give to their company. The company usually works in a team and thus every person can helps each other to complete the task. No individual feel isolated in the firm and enjoys working on a team with effective leadership. Two type of leadership style are basically used in the company. As far as Coca Cola Amatil is considered, it has been analysed that the core competencies of the company lies in its leadership, collaboration approach, integrity, accountability, passion, diversity and the quality of the products the company offers to the market.
Team leadership style: It is the leadership style that allows the employees to work effectively in the team with clear goals and their roles in the team. CEO inspires and motivates the workers and the employees to engage in the team and communicate with each other so that the team have better understanding (Crawford and Crawford, 2016).
Cross cultural leadership: as the company so expanding the business these days so it is required by the company to hire people from different cultural background. The company believes in cross cultural trainings so that they can work in a team even though they have different culture.
As far as the culture of the company is considered, it has been analysed that the culture is very open and the employees are allowed to share their opinions with the management. The decision power remains in the hands of the management only. Some of the criticism also has been faced by the company duet to its culture but firm the shareholders part. Employees are happy working the company (Albert, Werhane and Rolph, 2014).
Conclusion:
It has been concluded from the report that Coca Cola Amatil is the company that operates in the beverage industry with bottling business. It is the partner of Coca cola that helps the company to package its products. The company has the strength that it has great market position but the weakness of the company is that it is concentrating only on the young generation. The company has the opportunity to diversify its product range so that it can cater the market effectively. The leadership style that has been followed by the company focus on team work.
References:
Albert, P.J., Werhane, P. and Rolph, T., 2014. Environmentally Sustainable Processes. In Global Poverty Alleviation: A Case Book (pp. 213-261). Springer Netherlands.
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.
Ashley, R., 2017. Coca-Cola Amatil: Insights from the company monitor. Equity, 31(6), p.16.
Clover, J., 2007. Marx and Coca-Cola: All That Is Solid Melts into War. Film Quarterly, 61(1), pp.6-7.
Crawford, R. and Crawford, R., 2016. Opening for business: A comparison of J. Walter Thompson and McCann Erickson’s entries into the Australian market. Journal of Historical Research in Marketing, 8(3), pp.452-472.
Ghosh, B., 2010. Looking through Coca-Cola: global icons and the popular. Public culture, 22(2), pp.333-368.
Gunja, N. and Brown, J.A., 2012. Energy drinks: health risks and toxicity. Med J Aust, 196(1), pp.46-49.
Harris, J.L., Pomeranz, J.L., Lobstein, T. and Brownell, K.D., 2009. A crisis in the marketplace: how food marketing contributes to childhood obesity and what can be done. Annual review of public health, 30, pp.211-225.
Hoch, J.E. and Kozlowski, S.W., 2014. Leading virtual teams: Hierarchical leadership, structural supports, and shared team leadership. Journal of applied psychology, 99(3), p.390.
Jones, S.C. and Reid, A., 2010. Marketing to children and teens on Australian food company web sites. Young Consumers, 11(1), pp.57-66.
Karnani, A., 2014. Corporate social responsibility does not avert the tragedy of the commons. Case study: Coca-Cola India. Economics, Management and Financial Markets, 9(3), p.11.
Ludwig, D.S. and Nestle, M., 2008. Can the food industry play a constructive role in the obesity epidemic?. Jama, 300(15), pp.1808-1811.
Mahesa, D. and DJASTUTI, I., 2010. Analisis Pengaruh Motivasi dan Kepuasan Kerja terhadap Kinerja Karyawan dengan Lama Kerja sebagai Variabel Moderating (Studi pada PT. Coca Cola Amatil Indonesia (Central Java) (Doctoral dissertation, UNIVERSITAS DIPONEGORO).
Mihalache, O.R., Jansen, J.J., Van den Bosch, F.A. and Volberda, H.W., 2014. Top management team shared leadership and organizational ambidexterity: A moderated mediation framework. Strategic Entrepreneurship Journal, 8(2), pp.128-148.
Ouppara, N.S. and Sy, M.V.U., 2012. Quality of Work Life Practices in a Multinational Company in Sydney, Australia. Procedia-Social and Behavioral Sciences, 40, pp.116-121.
Pearce, C.L. and Conger, J.A., 2002. Shared leadership: Reframing the hows and whys of leadership. Sage.
Powell, D. and Gard, M., 2015. The governmentality of childhood obesity: Coca-Cola, public health and primary schools. Discourse: Studies in the Cultural Politics of Education, 36(6), pp.854-867.
Thow, A.M., Quested, C., Juventin, L., Kun, R., Khan, A.N. and Swinburn, B., 2011. Taxing soft drinks in the Pacific: implementation lessons for improving health. Health Promotion International, 26(1), pp.55-64
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