Essays on Coca-Cola Amatil - Performance, Competitive Landscape and Competitive Challenge Case Study

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The paper 'Coca-Cola Amatil - Performance, Competitive Landscape and Competitive Challenge" is a perfect example of a management case study. With headquarters in Australia, Coca-Cola Amatil (CCA) is The Coca-Cola Company’ s (TCCA’ s) leading global bottling partner that has operations in Australia, Asia, Eastern and Central Europe and South-East Asia. CCA is a leading Australian multinational that manufactures and distributes soft drinks, such as Coca-Cola, Fanta, Sprite, and Diet Coke (Mayes 2011). This paper presents a case study of the company to give an overview of the company's history, operations, performance, competitive landscape and competitive challenge, its external and internal analysis, the competitive challenge, the current strategies and lastly, the strategic management recommendations that can address the identified competitive challenge the company is facing. Company’ s Overview Operations: Coca-Cola Amatil (CCA) serves some 450 million customers in four continents worldwide.

It is the largest distributor of non-alcoholic drinks in developed markets, such as New Zealand and Australia, as well as developing countries such as Indonesia and Poland and South-East Asia. The company has its dedication to employee development, environmental audits and continual reduction of waste across all production and distribution stages (Karnani 2014).

In Australia, the consumption of Coca-Cola soft drink has continually developed. Indeed, consumption of beverages Australian buyers purchase for home consumption makes up about half of the overall drinks sold in the Australian marketplace (The Drum 2013). The establishment of the company was after a major restructuring of Amatil Limited in 1989. Initially, Amatil Limited dealt with packaging, beverage distribution, tobacco, and poultry. After the reorganization, the company sold its interests in these businesses to focus on the distribution of beverages and snacks as its core businesses. History: The company’ s beverage business started far back in 1964 when the company acquired Shelley and Marchant in Australia.

The company purchased interests in Coca-Cola Bottlers in Perth in 1965. In 1966, it took over the Coca-Cola Perth operation and the Coca-Cola Melbourne. Over a 25-year period afterwards, the company took control of Coca-Cola Bottlers in Port Macquarie, Brisbane, Geelong, Newcastle, and Sydney. Amatil made its initial beverages investment overseas in 1982 after acquiring Coca-Cola bottling facilities in Graz and Vienna in Austria. United Biscuits bought Amatil’ s snack foods interests in 1993 to concentrate fully on beverages, before rapid expansion to entre in the Asia-Pacific and European markets.

In 1998, its business initiation in Europe was as a distinct operation under Coca-Cola Beverages Plc to concentrate on the Asia-Pacific region. Apart from Australia and New Zealand, it is also a market leader in the beverage industry in Papua New Guinea, South Korea, Indonesia and Fiji. At present, CCA owns seven bottling facilities across Australia, after it acquired the Northern Territory facility in 2005. As of June 2014, Coca-Cola Company (TCCA) owned 29 per cent shares in CCA.

Current Performance: Current statistics indicate that the company’ s profits radically plummeted. As at June 2014, the company made a profit of $182.3 million, indicating a 19-per cent drop. The company’ s earnings before interest and tax (EBIT) reduced by 15.3 per cent to reach $316.7 million. Additionally, while the company had strong cash flow, its earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 10 per cent over the same period, compared to $448.1 million, before significant items (Dyer 2014).

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