Strategic Development Within Organization †Myassignmenthelp.Com

Question: Discuss About The Strategic Development Within Organization? Answer: Introducation Strategic development in an organization consists of a plan which highlights all the duties of the organization and their respective roles (Waddock Post, 1991). The program explains what is expected of the stakeholders towards the achievement of the organizational goals. The plan is developed by the management of the organization, and its primary role is the realization of the organization future to propel outstanding performance and ensure that the firm exists in future. A strategic plan is developed, and it does include not only the goals but also the processes of ensuring that the objectives are achieved successfully. This paper introduces us to Coca-Cola Amatil Company and the strategic development plan laid by the organization towards the achievement of the organization's goals. The company deals with production and supply of non-alcoholic beverages (Kanter, 2003). Today, the firm avails its services to many countries, but it was not the case at the beginning. The operation beg an in one country but due to the formulation of strategic development plan the company has achieved a market in various countries (Balmer, 2001). The company is amongst top global countries since their products are available and used globally. This paper, therefore, evaluates the Coca-Cola Amatil Company and analysis the company development strategies in details. Various processes pertaining strategic development within the organization are addressed accordingly. Different analysis methods like the SWOT analysis, PESTEL analysis, and Mr. Porters five model analysis are discussed concerning the organization. Challenges facing the team as it makes steps towards achievement of the objectives are highlighted which includes criticism from the society. The Coca-Cola Amatil organization. The Coca-Cola Amatil (CCA) is based in Australia, and its services are mainly conducted in the Asia-Pacific region. The Coca-Cola Company has highly developed from the last decade to a global business that operates on a local scale. The firm has over 15,000 employees, and their products are approximately consumed by more than 265 million consumers. It operates in six countries which are New Zealand, Australia, Samoa, Papua New Guinea, Indonesia, and Fiji (Adler Gundersen, 2007). The head office of the company is located in Sydney. Currently, the company can boast to be the leader of production and supply of non-alcoholic beverages. The company has more than 250 bottling partners worldwide. However, the firm is not a single entity since it does not own all the bottling partners. The bottling partners have established a close relationship with the customers mostly restaurants, movie theatres, groceries and convenience stores (Johnson Peppas, 2003). The partnerships have been develope d to ensure that the company acquires many customers both directly and indirectly. As a result, the company has developed gradually and there exist evidence that the corporation may still perform better in future. However, the company is facing criticism from the community which might end up interfering with its sales, but there is an opportunity of curbing this in early stages to ensure that the performance of the firm is not affected. The company is based on four pillars which consist of the well-being, environment, the people and the community (Schwartz Davis, 1981). The four pillars act as stakeholders and each, and everyone is expected to play their respective roles so that the objectives are achieved and giving the firm a chance to exist in future. The vision of the organization. The vision of the organization is based on the pillars making up the team. Providing exceptional brands to the customers who are within arms reach. Driving productivity and acquiring a lean, agile cost structure. Value creation with partners based on shared purpose. Making a distinctive and positive contribution to the place we reside. Delivering attractive and sustainable returns to the stakeholders. Providing products of high value and appreciating the growth of the customers. Concerning the vision, the company has currently laid down strategies to ensure that the vision becomes a reality. The following are the current strategies adopted by the firm: Improvement of the beverage products and the introduction of new improved brands (Quelch Hoff, 1993). Improving the production process through the incorporation of modern technology. Assisting the partners in ensuring that they give the best t the public. Launching projects to protect the environment and ensuring that their products are not harmful to the environment as well as the production process. Stakeholders are currently getting improved returns on shares compared to the past. The firm is now keen on producing products of high quality and assisting the customers to grow economically. Current strategy used To enable the company focus on driving the revenue and the profit growth, it is utilizing segmented revenues growth strategies all across the business in ways that are varied by the type of market. Additionally, the company has aligned their worker's incentive accordingly. When it comes to the emerging market, the focus has been primarily on the increased volume, keeping the beverage affordable as well as strengthening the foundation of the future success (Adler and Gundersen, 2007). When it comes to developing the market, the company has relied on the price vs the mix and improving the profitability through the provision of smaller packages and more premium packages. Creation of the value for the organization and the customer looks very different in different countries, and the company has done a good job when it comes to segmenting on the markets in order to drive the revenue growth (Ouppara and Sy, 2012). There are few industries which have changed more rapidly over the past few y ears in the non-alcoholic beverage industry. There has been evolution when it comes to the taste and preferences which have created innovation and this industry, the company has taken various steps to enable them to reshape the business (Ouppara and Sy, 2012). They looked hard to their operating structure and identified areas where there could be faster growth and then removed a layer of the functional management and connected it to the regional business units directly to their headquarters in Australia. Strategic type involved. To ensure proper implementation of policies to achieve the objectives the firm has adopted four types of strategies including the contingency approach, growth strategies, M. Porters Generic Strategies and Strategic Partnership. M. Porters Generic Strategies. Porter's generic strategies are based on five force model (Deshpande Webster, 1989). The model has performed well in Coca-Cola Amatil Company in the analysis of its strategies towards positive performance. The model aims at measuring the competitiveness of market deriving its attractiveness. The following is a five forces analysis of the Coca-Cola Amatil company about the Coca-Cola brand. For one to venture in the beverage industry, the barriers are relatively small. The company is facing competition since there are an increasing amount of new brands but the firm enjoys various advantages (Kaplan, 2007). The company remains superior in the market irrespective of the strategy used by the competitor since Coca-Cola is a strong brand in the market. The firm, therefore, seems to possess a medium pressure from the threat of new entrants. The threat of substitute products. Currently, many brands of beverage products are available in the market. It consists of juices, sodas, and various energy drinks. Most brands produced by the Coca-Cola Amatil company do not have a unique flavor, especially between the Coca-Cola brand and Pepsi. The firm, therefore, has medium to high pressure on the threat of products substitute. The bargaining power of buyers is low in Coca-Cola Amatil Company. It is because the customers have no pressure while purchasing their products. There is low pressure on suppliers bargaining power this is because the Coca-Cola Amatil is a large company and has a broad range of customers. Rivalry among existing firms. The competition amongst existing companies is high. It is because the company does not produce unique products. In the market, there are other soda brands from other enterprises which are popular like Dr.Pepper. It, therefore, results in stiff competition from its competitors. Growth strategies (Horizontal and vertical) Vertical and horizontal integration is a business strategy used by firms to maintain their position amongst competitors (Kong, 2008). Vertical integration takes complete control over one or more stages in production or the distribution channel. Horizontal integration involves the acquisition of business activities which are at the same level of the value chain in similar or different industries. The Coca-Cola Amatil company heavily relies on vertical integration which aims at eliminating intermediaries who make products reach the final consumer at relatively high prices. The methodology enables the firm to compete effectively since the prices of the products remains under control. The method also ensures that customers are protected against high prices of the products. Criticized Tactics To achieve some objectives and enjoy the market positioned currently owned by the Coca-Cola Company the journey has not been easy. The company has faced a lot of criticism from the public. Different types of stakeholders including the employees have criticized the firm achieving the goals a dream. As a result, the company ended up making unnecessary losses for some consecutive years. The company offers products to the different communities including Indonesia and New Zealand. The communities have formed partnerships with the company to provide their products to the customers (Dyson, 2004). Criticisms were witnesses from the partners claiming that the pricing of the goods should be similar since the products are the same. The criticizing individuals were aware that it was not possible due to economic situations of different countries. The firm could not make the estimated sales, therefore, the strategy failing. Customers claimed that the company is not concerned with improving the quality and taste of the brands. A big percentage of the consumers claimed that they could not identify the difference between the Coca-Cola brand and Pepsi (Dyson, 2004). It is true that there is no flavor difference between the two but the customers should not criticize since the company ended up losing many customers. When the company adopted vertical integration, the supply chain had to be minimized. The vendors initially involved in the provision of the products greatly criticized the company claiming that the company did not mind their welfare since they were left without any source of income. The implementation of the strategy was meant to protect the customers and improve the companys picture yet the eliminated middlemen could not understand. Up to date their still existing employees who criticize the company. The employees claim that the management does not put into consideration the well-being of the employees (Amit Schoemaker, 1993). It has been facilitated by low-income margins reported by the employees. Due to such criticisms, the company has performed unexpectedly. Although the strategies are implemented accordingly concerning the vision, the firm has not yet reached where it intends to be. Analysis Tools of the Coca-Cola Amatil Company. PESTEL Analysis. The company is affected by various political factors which affect its operations. Such factors include the level of political stability in the operational countries, impact of international pressure groups and domestic market lobbying groups and the attitude of the government towards the company operations. Political instability in different countries like Turkey has led to banning of Coca-Cola products. Political factors significantly affect the operation and the performance of the enterprise. The company is also affected by various economic factors which are beyond the firms control. These include the level of economic growth, tax rates, interest rates, labor costs and currency exchange rates. All these factors significantly affect sales of the company. There have been a lot of health concerns involving the beverage products produced by the Coca-Cola Amatil company (Child, 1972). The carbonated drinks are perceived to be harmful to health. Globally, the consumption of soft drinks is declining every day. The company is facing a big challenge as far as this is concerned, and an urgent action long-term solution is needed. SWOT Analysis. The company enjoys various advantages including brand equity, business valuation, vast global presence, fantastic marketing strategies, and largest market share, distribution network and customer loyalty (Child, 1972). In its operations, the company experiences some shortcomings. The weaknesses include product diversification, water management and inability to produce healthy beverages. Currently, the company possesses various opportunities. Amongst them are diversification of products, production of packaged drinking water, nations are continuously developing and having a market with minor selling products (Andini Simatupang, 2014). The company also has threats which should be addressed as soon as possible. Such risks include raw material sourcing and indirect competition. Themes of the organization. Lead- the group aims at strengthening its leadership. Execute delivering a step change in productivity and execution. Partner Ensuring good relationship with the company and partners. Core values of the organization. Ensuring transparency and openness in all transactions. Owning the whole enterprise and controlling the outcome. Laying adequate strategies for today and tomorrow. The organization is headed by the Coca-Cola Amatil Board which forms the sustainability board of committee. There is the Amatil Group of Leadership team which comprise of human resources, public affairs and communication and the procurement. The businesses are then formed and then lastly is the supply chain, Human Resources and Public affairs (Baghai et.al, 1996). Conclusion Strategic development can be initiated by developing a plan. The plan should highlight the goals and the way they can be achieved clearly. The Coca-Cola Amatil is a firm which has witnessed continuous development over time. The company is amongst the companies operating globally. The performance can be associated with utilizing the existing opportunities well and each and every one playing their roles accordingly. For any firm to perform all a good strategic plan has to be developed and implemented accordingly. References Adler, N.J. and Gundersen, A., 2007.International dimensions of organizational behavior. 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