The paper "Coca-Cola Amatil Downsizes Cans to Increase Sales " is a perfect example of a micro and macroeconomic case study. Coca-cola company intends to reduce its packaging bottle to 200 ml. this is due to an increase in competition from rival company companies such as the Schweppes. In recent months, Coca-cola production and sales have been declining and consequently, this has made the company to re-package their can in smaller in order to encourage efficiency and effectiveness in carrying and using the coca-cola can. The head of CCA and its marketing partner coca-cola south pacific are of the opinion that repacking the can of coca-cola sprite and Fanta into a smaller size will increase give a boost to the sales level as well as the growth by appealing the client. Possible impact Reducing the size of the can will increase the volume of coca-cola products being produced implying that there will be a change in the selling price.
This would lead to an increase in supply while demand increases. The business will report a huge profit from the sales since the increase in demand will be higher than the level of sales hence forcing the company to produce more coca-cola products at a smaller can with less price that is easily affordable by all consumers ion the market.
The emergence of the competition will as well be imminent and thus healthy competition will lead to the quality products as well as economic growth. The ACCC should ensure that it is free and fair competition in order to get rid of the monopoly market as well as enhance growth in and innovation. The net effect is that it will affect the economy of the country and thus the per capita income and living standard of individuals will enhance. Key stakeholders that are impacted by the issue The stockholders to be impacted are the direct consumers of the coca-cola product, the suppliers, as well as the competition commission of Australia since they are the direct shareholders and bear the direct impact of any economic change.
The net effect is that an increase in the level of Coca-Cola supply in the market would lead to a reduction in the level of income because the new can will be sold at lower prices.