Strategic Development within Coca-Cola Amatil
The global economy is growing. Similarly, different companies are also increasing and expanding their operations. Therefore, in order to maintain their productivity, these companies ought to have constant and flexible development strategies that suit the constant changes in the market. According to scholars, strategic management is the act of designing, implementing and evaluations of different decision making organs in an organization with an aim of reaching company's objectives and vision (Strategic business planning and development, pp.49-57). In other words, strategic development can be referred to as the science and art of implementation and formulation of the business plan which directs the business in effectively achieving its objectives as well as gaining useful control of the internal and external environment. In most cases, strategic development will involve the ultimate utilization of available resources which are within the organization reach to ensure the predominant performance of the company.
This paper will outline strategic development the Coca-Cola Amatil has taken in the past in order to control and effectively achieve progress from its startup to the current position. Secondly, the paper will look at the paper will discuss the different kind criticism the company has faced along its journey. Thirdly, it will discuss the various environmental aspects that affect the company by conducting the PESTEL analysis of the company. And finally, it will discuss the leadership style and culture utilized within the company.
Coca-Cola Amatil (CCA) is among the five largest non-alcoholic bottlers of ready to drink beverages in the Asian Pacific regions and basically operates within six countries these are; New Zealand, Australia, Papua New Guinea, Samoa and Fiji (Wilson, pp.1-15). Notably, the company's diversified portfolio of commodities consists of the carbonated soft drink, fruit juices, spring water, iced tea, coffee, tea, and energy drinks. To further understand this company into more details this report will consider the company's aspects of success from it basic beginnings to the current status. Similarly, the paper will clarify the company's strategic development processes, organizational culture and so on.
CCA Corporate Strategies
According to scholars, corporate strategies in a company are the control the leadership of a company or an organization opt for in order to achieve business success in the long term (Waśniewski, pp.20-31). It is, however, important to understand that recent studies have concentrated on the importance of organizations to adhere to dynamics in the business environment that is practice flexible strategies. Corporate strategy is a broad topic that includes everything a business does in order to achieve growth and make profits, that is by encouraging partnership, attracting top talents in the industry, adapting new technology and so no. the following are some corporate strategies CCA has managed to utilize.
1. Cornering fledgling market
Cornering the market usually involves business activities that can lead a business to gaining market dominance or in other words, activities that make a company have the greatest market share in a particular industry (Buescher, pp.210-223). Previously, CCA begun as a British tobacco company where it based its output in cigarette alone, over the years it has gradually purchased several companies for instance, the printing company it bought in the year 1909 which made the company develop strong printing capabilities and enabled them to further into packaging, in the year 1965 the CCA bought the coca cola bottlers Pty Ltd in Perth, in the 1980s the company acquired snack foods and bought the coca cola bottling company in Europe this was followed by the purchase of other Coca-Cola franchises across the Pacific. These activities ensured the company had competitive advantages over PepsiCo Inc., Nestle water and so on.
2. Product differentiation
Standing out or looking unique is the key requirements for success. It is important to note that unless customers recognize the difference between companies' product it is hard to achieve sales. Here companies can afford to prove uniqueness by either stating their product major technologies, heritage, styling and so on. For instance, the company's first introduction of the coca cola No sugar (Coke Zero), the main idea behind the production of the coca cola No sugar was to bring the Coke's classic taste but without sugar.
3. Gaining A Technological Advantage
In the current technological world, having technological advantages can regularly mean better sales, advanced productivity, market domination and so on. It has been correctly noted that every major firm spends millions of dollars on research and development in order to establish great technology. Notably, technological advantage does not only mean physical technology it can similarly mean retaining or acquiring important employees that can aid a business to improve its technological advantages. In this case, CCA's $450 million investment in the Blowfill technology ensured that the company is able to redesign as well as lightweight the entire water PET bottle range and the small carbonated soft drink, as a result, gaining significant cost saving, increased product shelf life, as well as stocking ability.
Criticism is the interpretation of something or someone typically on mistakes and faults. CCA's marketing strategies have been criticized in the previous years. For instance, in 2014 the public health operatives in Australia then termed the Coca-Cola campaign to help combat obesity as misleading (Gertner and Rifkin, pp.45-50). The company had vowed to help its customers fight obesity through offering low kilojoule products as well as supporting substantial activity system. In an opposing statement, Rob Moodie a health operative and a professor at the University of Melbourne said that if CCA was serious about fighting obesity they would be encouraging competitor companies to act the same, restrict the commercial to young children and finally they would not add 10 teaspoons in the coke can. This comment was taken seriously by the brand consumer and as a result, sales dragged. To reduce or control the effects of confusion driven by this comment, the Coca-Cola Australia's group manager Mr. Donna Mulhollad defended the company's efforts in fighting obesity.
The second criticism the company had to deal with is the marketing campaign for the new High Milk End drink also in 2014. The company aired a commercial with a woman model wearing a milk-like dress with milk flare, while other, the same woman model paused on a set of weighing scale with an astonished look on her face. Bloggers labeled the commercial as being sexist, boring and gratuitous.
- Quote paper
- bachelor of business administration Edison Otieno (Author), 2017, Strategic Development within Coca-Cola Amatil, Munich, GRIN Verlag, https://www.grin.com/document/433111