This paper depicts the several aspects of the Amcor. The purpose is to appraisal the depth analysis of the Amcor. It enables to explain the corporate identification, research, revenue centers, external environment, sustainable advantage and business level strategy.
Corporate identification: Corporation fulfilled the legal requirement that an entity separate and distinct from its owners. It is owned by a stakeholder who shares profit and losses by the organization operations. It has three characters such as legal existence, limited liability and continuity of existence. Amcor is a multinational corporation that operates from Australia. Amcor is listed on the Australia Securities Exchange. Its product protects beverage, food, medical, pharmaceutical and personal care goods. (Prahalad & Hamel 2006). The product portfolio is the collection of all product or service that offered by the Amcor. The Amcor has two kinds of packaging products such as rigid plastics and flexible. Rigid plastics involves packaging for food, beverage, personal & home care and pharmaceuticals. Flexible includes hospital suppliers, pharmaceuticals, food, drink pouches. Amcor is the world largest producer of PET bottles. It creates packaging solutions using rigid and flexible plastic packaging. (Eggers 2012).
Corporate Research: Business unit is an element (production, marketing, and accounting) of the Amcor that shows the specific business function. It is a flexible structural device that can help to implement people soft product based on how Amcor business works. (Harter, Schmidt & Hayes 2002). The product line is a mixture of many products under a single brand that sold through same organization. Amcor sold plastic packaging product in the Australian market that helps to raise the sales of it. Amcor’s global pharmacy department manage 26 plants in 16 nations in Africa, Asia, Europe and the America that developing flexible plastic packaging solutions for the biotech and pharmaceutical. Product lines of packaging options find out the requirements for unit dose, sustainable solutions and child-resistant.
Corporation Revenue Centers: Amcor 32 percent sales are generated from emerging markets. So, the emerging market is one of the best sources of revenue in the market. Amcor announced the acquisition of Delux Packages that generates around US $42 million packaging products to customers. The organization services the beverage, food, tobacco, healthcare markets by two operating segments rigid plastic packaging (31 percent of revenue) and flexible packaging (69 percent of revenue). Amcor’s geographic exposures involve Western Europe (34 percent of revenue), North America (29%) and Australia & New Zealand (6%) and rest of 31 percent revenue from emerging markets.
External Environment Analysis: It describes the political, economical, social, technological, environmental and legal procedure of the Amcor.
Political: It is the significant external factor of the Amcor in the competitive market that made around 20 acquisitions in the last five year with rigid plastics, tobacco packaging, and flexible packaging. This long acquisition is occurring due to the stable political situation in Australia. Due to the long acquisition of the Amcor, it is surviving in the worldwide competitive market. It is the significant factor of the external environment of the Amcor that is achieved by the help of Australian political certainty. (Slaton 2011). Further, political certainty requires achieving the Amcor goal and objective in the competitive market. Amcor CEO conducted meeting with the Australian political leader to release funds for the plastic packaging industry. It is beneficial for the Amcor growth and development. (Lane 2013).
Economic: Strong cash flow and good financial position of the Amcor helps the Australian economy to survive in the competitive market. Australia is a well-developed country that has mix market economic. Australian economic is dominated by the Amcor kinds of company contribution in the market. Further, Amcor affected the economy condition of the Australia because the economy is the indication of the right path in the plastic packaging industry. (Waschik, Fisher & Prentice 2010).
Social: Amcor got a gold rating in the 2014 Corporate Social Responsibility assessment that designed by Eco Vadis. It is possible by the social contribution of it. Amcor got outstanding result in the manufacturer of the plastic product. We should concentrate of partnering with our suppliers to share our abilities to help our business. Amcor won many awards such as World Star Packaging Award 2016, EAFA Alufoil Trophy 2015, Flexible Packaging Achievement Awards and DuPont award for Packaging Innovation. This award realizes the Amcor image in the society that it is working for stakeholder welfare. (Jack & Plunkett 2010). Further, social is important external elements of the Amcor that helps to survive in the competitive market. Amcor plastic packaging goodwill in the society will help to survive in the competitive market. (Slaton 2011).
Technological: Amcor created the LiquiForm technology in 2006 and completed the joint venture with LiquiForm and intellectual property. The joint venture is agreements with Yoshino Kogyosho Co, Nestle Waters, Amcor, and Sidel. It will issue a license to produce and sell equipment using the LiquiForm technology. CEO of the Amcor Ken MacKenzie said that “I am working with packaging industry since last twenty year and LiquiForm technology is the breakthrough technologies in liquid packaging. LiquiForm technology will transform the rigid plastic container manufacturer industry that providing players throughout the value chain. The liquid is one of the best examples that Amcor is translating its deep understanding of the requirement of customers. (Jack & Plunkett 2010).
Environmental: The Amcor environmental policy is supported by three mandatory environmental standards such as cooling towers, community impact, and environmental discharges. These standards evaluate the highest risks in the Amcor. It is the significant standards for the Amcor that helps to survive in the competitive market. (Jack & Plunkett 2010). Further, To achieve our environmental impacts, we will focus on working with suppliers, regularly setting & working towards our GHG emissions and implementing environmental management systems. It is committed to managing its business in the worldwide. This commitment is supported by objective, target, and an environment policy, regular environmental reporting, and auditing. It meets its environmental goals to set targets, objectives, communication, education, and management responsibility. (Slaton 2011).
Legal: Amcor is the fast growing packaging company in the worldwide market due to follow all legal activity of it. They followed the all legal procedure of the packaging in the market. It is helpful to survive in the competitive market. (Lane 2013).
The source of Sustainable Competitive Advantage: It is a tool that helps to improve the product quality with a lower price in the market. These are the significant source of the sustainable competitive advantage that is described below:
People: If Amcor people (stakeholder) are better at creating, innovating and producing, then you may achieve competitive advantage. Rexam PLC, Silgan Holdings, and Georgia-Pacific, LLC is the close competitors of the Amcor can copy the product. But, they are never able to copy your people. The competitor companies help to evaluate Amcor product quality as compared to other products in the market. Amcor has to evaluate cost structure, brand and quality of packaging product as compared to its competitors that help to sustain competitive advantage of it. (Vorhies & Morgan 2010).
Organization culture & structure: The organization culture is the behavior, beliefs, norms, mission and symbols of your Amcor. An effective culture concentrates the energies and skills of your people on producing meaningful results. (Jack & Plunkett 2010).
Process & practices: If Amcor will produce superior methods of producing results. Then, you can enjoy competitive advantages. Amcor process of plastic packaging product is following the significant role in the competitive advantage. It made the Amcor one of the best PET packaging companies in the world. (Vorhies & Morgan 2010).
Product & intellectual property: Amcor product packaging design can be a competitive advantage. Intellectual property laws can protect your rights to protect, process and technology design. (Porter & Kramer 2012).
Capital & natural resource: It is the source of traditional source of most competitive advantage. The significant of capital has reduced over time. (Vorhies & Morgan 2010).
Technology: Technology involves transportation technology, energy, industrial machinery, consumer products and office equipment. Amcor created the LiquiForm technology in 2006 that is the significant source of the competitive advantage. (Porter & Kramer 2012).
Business Level Strategy: It shows the plan of the Amcor to conduct several features in their business operations. Amcor used five business level strategies that are determine below: Coordinate unit activities include all single activities found in a business. Develop distinctive advantage represent skills to produce products better than another organization. Identify market a niche includes conducting an economic analysis that Amcor consumer demand. Utilize human resource includes human labor to fulfill business objective or goals. Monitor product strategies should find to review the business level strategies to implement in their operation. (Nandakumar, Ghobadian & O’Regan 2010).
From the above analysis, it can be concluded that clear corporate identification, research, revenue centers, external environment, sustainable advantage and business level strategy, as well as high caliber to adopt new technology in Amcor helps to survive in the worldwide competitive market. It is a fast developing organization in the plastic packaging industry. These are the significant recommendations that are described below:
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