The paper "Coca Cola Amatil's Operations in Indonesia " is a perfect example of a business case study. Coca-Cola Amatil plans an investment of A$100 million in its Indonesia operations to be utilized over the next 3 years. That is, actually, double than the previous terms. Given the bold move that the company has taken, this report summarizes the company with respect to its Indonesian landscape. on the political, economic and social front. The report also looks into the legal and regulatory angles of its operation in Indonesia, while trying to understand potential and emerging areas for the company to gain from in the near future.
It also looks into potential threats that the company may face on account of existing players in the soft drinks market and emerging ones that could make a potential impact on its business. Part II: Introduction to Report This report is about Coca Cola Amatil’ s operations in Indonesia, which is one of 4 countries, namely New Zealand, Papua New Guinea, and Fiji. Australia is the home country, where the company’ s key sites are at North Sydney (NSW), Northmead (NSW), Moorabin (VIC), Richlands (Qld), Kewdale (WA), and Thebarton.
Last year, in 2010, it was announced that the company would invest A$100 million over the next three years in the country, a move that would actually see the investment in Indonesia being doubled over these years. The announcement was made in Indonesia during the annual investor presentation (Eckersley, 2010). Since doubling the investment in that nation has been a very strategic decision, which calls for a higher level of responsibility, it is important to read this report, which has been prepared with the help of company notes, presentations and media reports. Part III: Part III (a) POLITICAL ECONOMY ENVIRONMENT ISSUES Political, Regulatory and Legal Political The nation is faced with issues on all three fronts – political, regulatory and legal.
Indonesia ceased to be an OPEC member in 2008; even though it is open to being an OPEC member once more, its current status makes it politically risky.
Datamonitor Research Store. (2011). Soft Drinks Market in Indonesia to 2014. Available at http://www.datamonitor.com/store/Product/soft_drinks_market_in_indonesia_to_2014?productid=DBCM8022. Accessed on December 12, 2011
Eckersley, N. (2010). Coca-Cola Amatil invests $100 million in Indonesia. Available at http://www.ausfoodnews.com.au/2010/11/25/coca-cola-amatil-invests-100-million-in-indonesia.html. Accessed December 12, 2011
The Economist Intelligence Unit for December 2010. (2010). Indonesia Political and Economic Outlook 2011-2015. Available at http://ecoggins.hubpages.com/hub/Indonesia-Political-and-Economic-Outlook-2011-2014. Accessed on December 12, 2011
Foreign Investment in Indonesia. (2011). Fnpfirm.com. Available at http://www.fnpfirm.com/lib/Foreign_Investment_in_Indonesia__writeup_.pdf. Accessed on December 12, 2001
AMB Country Risk Report. (2011). Indonesia. Available at http://www3.ambest.com/ratings/cr/reports/Indonesia.pdf. Accessed December 12, 2011
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Lee, H. (2011). Preview of the Year - 2011 – Part VI: Soft Drinks & Water II. Available at http://www.just-drinks.com/management-briefing/soft-drinks-water-ii_id102809.aspx. Accessed on December 12, 2011