Introduction
This report entails an analysis of various operation management issues. The report evaluates how the operations department in the Coca Cola Amatil executes the various operations management issues. The report will contribute towards the generation of sufficient and practical insight into the various operations management issues identified.
The firm has been in operation for a considerable duration and has developed an adequate competitive advantage with regard to manufacturing, marketing, and distribution of diverse non-alcoholic beverages. The firm’s operations entail the production of diverse categories of beverage products such as sparkling beverages, ready-to-drink non-alcoholic beverages, non-carbonated energy drinks, and flavoured and carbonated waters.
The firm also offers different carbonated beverages, sports drinks, juices, ready-to-drink coffee, and tea. The Coca Cola Amatil (CCA) also offers a wide range of flavouring ingredients, powders, and sweeteners that widely applicable in different water products.
The firm’s operational efficiency has significantly contributed to its efficient growth both domestically and in the international market. In 2011, the firm’s net income amounted to $9,262,000. A report released by Forbes revealed that soft drink firms would continue to experience growth.
Consequently, the firm faces intense competition from other soft drink firms such as Pepsi and other new entrants despite its optimal market position. In a bid to deal with this challenge, the Coca Cola Amatil has continuously focused on increasing its investment in the international market.
Since its inception, the Coca Cola Company has established itself as a global leader with regard to operations and management outlook. One of the reasons behind the firm’s success relates to its effectiveness in bottling facilities and production systems.
The firm’s manufacturing system covers production systems, which include primary inputs, conversion subsystems, and outputs. Other activities, which constitute the manufacturing process, include packaging and storage. Consequently, it has been successful in tapping the numerous opportunities in the global market.
Charantimath (2007) defines operations management to include the various processes that firms incorporated in an effort to ensure successful operations. The processes focus on enhancing productive resources, systems, and supply chain (Basu & Wright 2007). Operations management is essential for it enables firms to deliver products and services that are in line with market needs.
Firms should incorporate various operational issues in an effort to be competitive. Some of these include equipment maintenance policies, production scheduling, quality improvement, inventory management and material handling, risk management and managing information systems.
This case study will illustrate how the Coca Cola Amatil has incorporated various operations management concepts in order to create and sustain a high competitive advantage. The core operations management concepts evaluated include quality control.
Theoretical Framework
Quality Management
The Coca Cola Company focuses on ensuring that its customers attain a high level of satisfaction by consuming the firm’s products. One of the aspects that the firm’s management team takes seriously in the production process is quality (Case Study 2010). According to Pfeifer (2002), quality covers diverse product or service characteristics that create satisfaction amongst customers.
Achieving the desired product quality can only be realisable if firms incorporated the requisite processes and factors. In a bid to achieve the desired quality, the Coca Cola Company ensures that the firm is consistent in its operation, complies with the formulated operational procedures, and attains speed and perfection in the delivery of products and services.
Considering the numerous transformations within the soft drink industry, the Coca Cola Company has incorporated the concept of total quality management as one of its core corporate strategies. Consequently, the firm considers total quality management as an organisational wide concept.
One of the components of total quality management that the Coca Cola Company emphasises on in its quest to achieve organisational success is a quality improvement. According to Chao (2007), quality improvement entails the various processes that firms incorporate in an effort to ensure that they operate efficiently. Through quality improvement, firms ensure their growth and satisfaction of their customers.
Ultimately, satisfied customers become loyal to the company and thus the company grows due to improved revenues. In their operations, firms can enhance the attainment of sufficient level of quality improvement through various ways such as ensuring effective control and setting sufficient quality standards. If the set standards are achieved, new ones have to be formulated (Evans & Lindsay 2008).
Quality improvement also takes into account employee training and development. The objective of training and development is to minimise the chances of failure. Conventionally, trained employees rarely make technical mistakes, which might cost the company resources and money. The training process is achievable via the formulation of a comprehensive employee-training program.
Alternatively, firms can consider the possibility of outsourcing training services from renowned human resource training firms. However, outsourcing can be costly for a firm. It is also important for firms’ management teams to ensure that the training process is all-inclusive, which means that it should incorporate both lower level employees and top executives (Hartman 2002).
Ultimately, a firm will in a position to develop the intended synergy. Ensuring that the training process is systematic is also another factor that firms’ management teams should consider when formulating their strategies. This aspect means that training should start with employees in the firm’s management cadre and then incorporate the non-management staff (Hartman 2002).
Prior to the training process, it is important for firms’ management teams to ensure that all employees understand the importance of quality improvement because with such understanding, the reliability of the firm’s production process improves significantly.
According to Dahlgaard, Kristensen, and Kanji (2006, p.282), every organisation seeks to nurture a strong quality culture in order to achieve the desired quality objectives. Consequently, firms’ management teams carry the responsibility of ensuring that their workforces have comprehensive knowledge regarding various quality techniques (Chase & Aquilano 2006).
This element underscores the importance of incorporating continuous learning that should be achieved through training (Oakland 2003). Training employees contributes towards changing their attitude and perception regarding various operational processes. However, for the training process to be successful, firms’ management teams should ensure that employees are continuously updated regarding the firms’ quality progress (McLaughlin & Kaluzny 2006).
In addition to training and development, firms can also achieve quality control by installing the necessary quality systems. McLaughlin and Kaluzny (2006) further assert that the quality standards should align with the set international quality standards such as ISO 9000.
The ISO 9000 quality management system [QMS] is a process-focused QMS, which means that the various activities and operations that organisations undertake stand out as a process. In a bid to attain the desired level of quality, firms’ management teams should develop a comprehensive quality objective. It is also paramount for firms’ management teams to formulate effective policies in order to achieve the most favourable quality improvement.
Prior to implementing the quality improvement procedures, it is critical for firms’ management teams to conduct a comprehensive feasibility study aimed at determining the feasibility of the quality improvement objectives. The next step entails designing a comprehensive quality improvement cycle.
The cycle can consist of four main steps, which include plan, do, evaluate, and act [PDEA] (Hartman 2002). In a bid to achieve the desired quality outcome, it is important for the relevant bodies to allocate the required resources effectively.
Conducting continuous market research is also critical in undertaking quality improvement. This aspect will aid the firm in understanding the prevailing market changes with regard to quality.
Application: In its operation, the Coca Cola Amatil is committed at ensuring that its customers consume high quality products and services. Consequently, the firm has formulated quality control standards that its production department is required to adhere to in the production process.
Considering the dynamic nature of the soft drink industry, the Coca Cola Amatil has instituted a policy, which ensures continuous review of the set standards. This move enables the firm to set new quality control standards in order to align its products and services with the changes in the market.
The Coca Cola Amatil has become cognisant of the importance of incorporating quality standards, which has motivated the firm to rollout an all-around management system that integrates various quality standards such as ISO 9001 quality, ISO 22000-food safety, and ISO 14001 environmental safety.
In addition to the above quality systems, the firm has also integrated various safety and operational standards in an effort to develop a sustainable competitive advantage with regard to quality. Social factors have also stimulated the firm to consider the possibility of incorporating ISO 26000, which deals with ensuring that firms operate in a social responsible manner.
Analysis of Waste and Lean Management
Lean management entails minimising waste during the production process (Goldsby, et al. 2011, p.1). Over the past few years, firms have been focusing on adopting cost-effective operations in addition to producing high quality products and services that will contribute towards the development of a strong competitive advantage.
Lean management can only be realisable if a firm’s management team nurtures lean thinking amongst employees. The concept of lean thinking calls for the elimination of all organisational activities that do not contribute towards value creation in an organisation’s operations. Through lean thinking, the firm’s management teams can establish the inherent value of a product or service (Dilworth 2000).
Tapping, Luyster, and Shuker (2002, p.54) are of the opinion that it is critical for management teams to ensure effective material and information flow in order to achieve effective lean management. Information flow is paramount in ensuring that a firm only undertakes those activities that are in line with the prevailing market demands.
According to Cachon and Terweisch (2009), lean management contributes towards the elimination of non-value added activities. Some of the techniques that are incorporated in an effort to attain lean management include “Just in Time” and continuous improvement (Winchell 2006).
Firms can achieve numerous advantages by incorporating lean management practices. Sabri & Shaikh 2010). Firstly, lean management enables a firm’s management team to identify waste hence eliminating it. Ultimately, the firm can minimise the cost of operation, which arises from the fact that the firm reduces the overproduction of goods and services and minimises the carrying cost for finished products.
Additionally, lean management enables the firm’s management team to develop its employees through the incorporation of continuous improvement techniques (Slack, et al. 2004).
Application: Coca Cola Amatil is cognisant of the importance of operating cost effectively. Consequently, the firm has integrated the concept of lean management. One of the ways through which the firm accomplishes lean management is by conducting continuous consumer market research. Through market research, the firm has managed to reduce its cost of operation by producing beverage products that are in line with the prevailing market demand, thus enabling the firm to minimise carrying costs associated with overproduction (Callioni, De-Montgros, Slagmulder, Van-Wassenhove, & Wright 2005, p.135).
Analysis of Inventory Management and Capacity Planning
In the course of their operations, most organisations acquire raw materials that are utilisable in the production process. Therefore, it is important for the firms’ management teams to control such materials effectively in order to achieve the desired operational efficiency and effectiveness (Callioni, De-Montgros, Slagmulder, Wassenhove, & Wright 2005).
One of the factors that should motivate firms to undertake effective inventory control is associated with the prevailing market uncertainty. Organisational managers do not have control regarding the availability and cost of raw materials from the market. However, market forces of demand and supply influence the availability of raw materials. Ineffective inventory control can lead to a firm losing its competitive advantage.
One of the ways through which this scenario may occur is associated with the fact that the firm may run out of raw materials necessary for its production processes. In the event of such an occurrence, its competitors benefit by supplying customers with their products and services needs (Vonderembse & White 2004).
This aspect may culminate in the creation of a negative image on the part of the firm, and thus some customers may decide to shift to the competitors’ product despite the associated switching cost in an effort to achieve the desired level of reliability.
An organisation may use various inventory control mechanisms in its operation process. Some of these strategies entail continuous inventory systems, just in time, and bin inventory systems. Continuous inventory system entails ensuring periodic monitoring of the inventory system, which allows the firm to monitor when its inventory level drops below a certain level.
This move improves the effectiveness with which a firm replaces its inventory. This system of inventory control enables an organisation to replenish its supply of raw materials optimally. Additionally, continuous inventory control enables a firm’s management team to ensure effectiveness in dealing with gaps between the period of placing an order and the time of receiving the supply.
Consequently, the management eliminates the effects of possible inconveniences that might be experienced during the supply process. In a bid to utilise the continuous inventory control method effectively, it is paramount for a firm’s management team to automate the system, which increases the effectiveness with which a particular firm undertakes the control process.
The just in time approach entails supplying raw materials in accordance with the customers’ product and service needs (Krajewski & Ritzman, 2002; Hill, 2000). This element means that a firm undertakes the procurement process when customers need the goods. On the other hand, bin or periodic inventory control method entails assessing the volume of inventory at a specific time.
This aspect leads to the creation of a variable inventory ordering system. The firm’s management team ensures that the order placed is sufficient to sustain the firm’s operations until the next ordering period. In a bid to ensure effectiveness in utilising this system, it is paramount for a firm’s management team to incorporate inefficiencies such as the delivery lead-time (Hill, 2000; Slack et al. 2004).
Additionally, firms should also incorporate capacity planning and control. Capacity planning enables organisations to establish a balance between its capacity and the prevailing market demand (Hill 2000). The resultant effect is that the firm is able to address changes in the market.
Effective implementation of capacity planning enables firms to deal with market uncertainties. The resultant effect is that a firm is able to attain a high level of customer satisfaction (Hill 2000).
Application: As a firm whose operations entail the production of products, the firm appreciates the importance of ensuring operational efficiency. Consequently, the firm has integrated an effective inventory management and capacity planning mechanism, which constitutes continuous inventory control.
The firm has automated its inventory system in an effort to ensure effective replenishment of the raw materials. This move has played an important role in preventing the firm’s operations from coming to a halt.
Analysis of Risk Management
Risk management entails the process of identifying, assessing, and prioritising risks. After undertaking these tasks, a firm’s management team should ensure that it allocates the necessary resources and level of coordination in order to monitor, minimise, and manage the identified risk. This move plays an important role in minimising the negative effects of the identified risk.
The management should not always perceive risks as detrimental factors to a firm’s operations. However, it is paramount for a firm’s management team to incorporate strategies that contribute towards positive exploitation of the risk (O’Brien, & Marakas 2007). In the course of their operation, the firm’s face risks from different sources.
Examples of sources of risk include market uncertainty due to economic changes, project failures, changes in the legal environment, natural risks such as earthquakes, artificial risks for example acts of terrorism, and credit risks amongst others.
In a bid to be effective in dealing with risks, it is paramount for a firm’s management team to characterise the threats posed by each risk. Additionally, for the management team to identify the vulnerability of a firm’s operations, it should determine the involved risks.
This aspect is critical in determining the strategies that the firm will incorporate in order to deal with the risks. A firm may consider the incorporation of various risk options in the course of its operation. Some of these risks include risk avoidance, reduction, sharing, and retention. Risk avoidance entails ceasing from engaging in activities that associate with a particular risk.
In a bid to ensure competitiveness in the business environment, it is not advisable for firms to incorporate risk avoidance strategies. This aspect arises from the fact that a firm’s ability to develop its competitive advantage may be limited (O’Brien, & Marakas 2007).
Risk prevention entails incorporating strategies that contribute towards the elimination of hazards that increase the probability of a risk occurring. On the other hand, risk reduction entails integrating strategies that minimise the severity of the risk. Due to technological innovations, organisations are increasingly benefiting from the incorporation of risk reduction systems.
Another strategy that firms are increasingly integrating in their risk reduction efforts is outsourcing. In a bid to deal with economic risks, firms are increasingly considering the possibility of outsourcing certain process from other firms. This move has played a significant role in minimising the cost of such risks.
For example, in an effort to improve their operational efficiency through the implementation of different operational software, managers are increasingly considering outsourcing software-developing companies to design the desired software on their behalf. This aspect safeguards such firms from incurring the risks associated with software development.
Another strategy that is increasingly becoming popular in managing risk entails risk sharing or risk transferring. This strategy entails sharing the risks associated with a firm’s operation with another firm. In most cases, risk sharing associates with insurance companies (McLaughlin & Kaluzny 2006).
Application: Considering the challenging nature of the business environment, the Coca Cola Amatil has incorporated risk management as one of its business operations. For instance, the firm has incorporated risk-sharing strategy (Coca Cola Amatil Limited 2011).
One of the ways through which the firm has achieved this goal is by working closely with its insurers. As a result, the firm has managed to mitigate potential risks effectively. Additionally, risk sharing has enabled the Coca Cola Amatil to streamline claim processes in addition to managing losses.
The firm has established a risk management policy, which aims at providing a comprehensive strategy on how to analyse risk (Maidment 2011). The firm reviews the various risks it faces in an effort to improve its performance. Additionally, the firm has instituted a risk audit committee to aid in the identification and minimisation of risks.
In addition to reviewing risks internally, the CCA has also incorporated external auditors to assist in providing a fair opinion with regard to the risks facing the firm. The auditors assess various aspects of the firm’s operations such as its internal control systems (Coca Cola Amatil Limited 2011).
Managing Information Systems
Information is vital in the success of every organisation. Consequently, it is paramount for every organisation to ensure that it incorporates a smooth flow of information amongst the various departments. Therefore, to achieve operational efficiency, organisations have to ensure that they share information collected from various sources.
One of the ways to ensure efficiency in collecting and sharing information is through the incorporation of information systems. Beynon-Davies (2002) defines information system as the process of communication between a firm and its diverse stakeholders.
Therefore, information system entails a system of gathering and distribution of information. According to Curtis and Cobham (2008), there are different management information systems that a firm can incorporate in its operations. These information systems serve diverse purposes, needs, and functions.
Considering the fact that organisations differ with regard to interests, approaches, and objectives, a firm’s management team can incorporate information systems that are in line with the firm’s operations.
A firm can incorporate various types of information systems including decision support systems, transaction processing systems, supply chain management systems, customer-relationship management systems, business intelligence systems, and expert systems.
According to Curtis and Cobham (2008), the transaction processing systems (TPSS) are the most common and widely utilised information systems in different firms’ operations. One of the most prominent TPS is concerned with ensuring the effective recording of information from various quotas of a firm’s operations. For example, the TPS may be applicable in recording data regarding a firm’s transaction with various clients.
Additionally, an organisation can use the TPS to record data pertaining to the firm’s internal operations. With regard to manufacturing firms, the TPS may be used to record data regarding the movement of products from one stage to another for example from raw materials to the finished product.
An example of TPS includes a firm’s point of sale machines, which are applicable in recording information regarding firms’ sales, purchase orders systems used in recording sales, and automatic teller machines used in making withdrawals.
The supply-chain management system entails information systems that are used in the process of ensuring that the various activities, with regard to production and selling of products and services, are undertaken effectively. Examples of such systems in firms that deal with the production of goods and services relate to activities such as the acquisition of raw materials, manufacturing process, and marketing.
On the other hand, supply chain management systems in service industries may entails activities such as document management and marketing. Supply chain management systems are paramount for they enable firms to undertake comprehensive production and marketing of their products and services. Additionally, the SCM are important because they prevent firms from re-entering data that an organisation may already possess.
An organisation that has incorporated effective SCM can achieve synergy in the course of its operation, which arises from the fact that the various departments in the organisation can access the system, hence gaining knowledge regarding the firms supply chain. Ultimately, the firm can execute its operations more cost effectively and efficiently.
Due to the constant market changes, it is important for a firm’s management team to develop a comprehensive understanding regarding customers’ tastes, preferences, needs, and wants. This aspect increases the effectiveness with which a particular firm produces products and services that align with the market demands.
However, this can only be realisable if firms possess sufficient and accurate information regarding customers’ products and services needs. One of the ways through which organisations can achieve this goal is by establishing a relationship with their customers. According to Curtis and Cobham (2008), the incorporation of CRM systems can enable a firm’s management team to develop a strong relationship with their customers.
The CRM system provides firms with an opportunity to interact with their customers, hence developing a strong relationship. Consequently, a firm can access market information regarding consumers’ tastes and preferences. Additionally, the firm can access information with regard to consumers’ complaints, which presents an opportunity for the firm to improve its products and services.
One of the ways through which firms can develop an effective CRM system is by establishing a call centre through which customers can interact with the firm (Laudon & Laudon 2006).
In addition to this aspect, there are sophisticated CRM systems that enable organisations to access information regarding a customer’s behaviour, for example, if the customer intends to shift to another supplier. Such information systems are paramount in developing strategies to nurture a strong level of customer loyalty.
The CRM systems should be effectively designed and accessible by all organisational employees for such a strategy will ensure that employees focus towards delivering a sufficient level of customer satisfaction. The CRM system should also ensure smooth interaction with the customers (Curtis & Cobham 2008).
On the other hand, business intelligence systems seek to ensure that an organisation utilises the raw data collected from the market effectively to generate information regarding market trends. Business intelligence systems are critical in a firm’s effort to develop sufficient competitive advantage. In most cases, business intelligence systems constitute sophisticated statistical models.
Additionally, they can be tailored to meet the needs of a specific organisation or industry. Business intelligence systems are developed by creating an effective data warehouse. By using effectively designed business intelligence systems, an organisation can generate sufficient information regarding the consumers’ buying patterns (Laudon & Laudon 2006).
Decision and expert support systems cover another category of information systems that firms incorporate in their operation process. In the course of executing their duties, a firm’s management team assumes the responsibility of ensuring that it makes and implements effective decisions. The decisions should contribute towards the improvement of the firm’s operations.
Due to time and resource constraints, managers may not have the opportunity to review all the information that is build within the organisation’s information systems. Consequently, decisions support systems (DSS) seek to assist firms’ management teams to make optimal decisions. DSSs rely on effectively designed formulas and models. By incorporating the DSSs, organisations can formulate alternative courses of action, which ultimately leads to the improvement in a firm’s performance (Laudon & Laudon 2006).
Employee turnover is another challenge that the firm’s management teams have to deal with. Due to employee turnover, organisations may lose key human capital, which may adversely affect the firm’s operations. Therefore, to prevent such effects, firms devise expert systems that enable them to preserve expert knowledge. Such knowledge can then be used in the firm’s course of operation.
In a bid to achieve operational efficiency, Coca Cola Amatil has incorporated a comprehensive information management system. The system constitutes diverse information support systems, which include customer relations management systems, transaction-processing systems, decision support systems, and expert decision systems.
With regard to the CRM system, Coca Cola Amatil has incorporated effective CRM software in an effort to develop a strong relationship with its customers. The software ensures real time interaction between the firm’s management and its customers. In a quest to prevent its competitors from utilising the information generated through the CRM software, the firm has incorporated the CRM software within its intranet system.
As a result, only the firm and its clients can access the system. Additionally, the firm has incorporated emerging social networks as one of its CRM strategies in an effort to interact and develop a strong relationship with its customers. Some of the social networking tools that the firm has incorporated in its operation include the use of Facebook and Twitter.
In the contemporary times, social media plays a key role in creating awareness of different companies coupled with providing a platform through which organisations can interact with their customers efficiently. Coca Cola Amatil is not ignorant of such modern market realities and this it has incorporated Facebook and Twitter as aforementioned.
Analysis of Project Management
In their operations, firms undertake numerous projects in an effort to thrive in the future. The projects differ with regard to their size and nature. However, the success of such projects depends on the effectiveness with which a firm’s management team incorporates effective project management techniques. Project management refers to the process through which a firm plans, schedules, controls, and invests the prerequisite resources in order to achieve the predetermined goal.
Projects are designed with the objective of achieving technical, economic, and operational efficiency. Considering the fact that opportunities have a short window, it is paramount for a firm’s management team to ensure that the initiated projects are completed within the stipulated period.
The importance of timely completion does not only hinge on the need to achieve the desired goal, but also on the fact that, firms experience resource and time constraints. Consequently, it is paramount for a firm’s management team to ensure that cost, time, and quality of a particular project are balanced.
Application: In the course of its operation, Coca Cola Amatil has implemented a strong project management team. The team is charged with the responsibility of setting the time frame within a particular project should be completed, the budget and the desired outcome. Additionally, the team is charged with the responsibility of setting a criterion to determine the success or failure of every project implemented.
Role of the Operations Manager
In a bid to ensure effective formulation, implementation, and attainment of operational processes, it is critical for a firm’s management team to allocate roles and responsibilities to various parties. Without a clear role definition and assignment, employees will end up wasting quality time doing nothing thus leading to reduced productivity.
One of these roles relates to operations manager (Hill 2000). The operation manager assumes the responsibility of ensuring that the firm’s objectives, goals, and visions are attained. Conventionally, firms have set objectives that should be achieved for meaningful existence and productivity of the firm.
The operations manager should be focused at ensuring that the various operational process incorporated by the firm contribute towards the development of a high competitive advantage. The operations managers should ensure that the firm is effective in dealing with changes occurring from the external business environment.
Some of the issues that firms operations manager should focus on entails dealing with technological, economic, social, political, and environmental changes. With regard to economic changes, the operations managers should ensure that their organisations align with the prevailing technological changes.
For example, they should incorporate strategies aimed at improving the firm’s operational efficiency and effectiveness. Additionally, taking into account the prevailing technological aspects will ensure that the firm is in a position to attain a relatively high level of competitive advantage.
In their operations, an organisation focuses at ensuring that customers achieve a high level of satisfaction by consuming its products and services. Consequently, the operations manager should ensure that the products and services produced by the firm contribute towards a high level of customer satisfaction.
In addition to attaining their profitability objectives, firms are also charged with the responsibility of ensuring that they operate in a social responsible manner. Consequently, the operations manager should formulate strategies to ensure that the firm operates in a social responsible manner.
One of the aspects that a firm’s operations managers should focus on entails desisting from operations that adversely affect the climate. The issue of global warming has become a central point of debate in the 21st century and thus organisations cannot overlook how they affect the environment in their operations.
Conclusion
Operations management is one of the most important aspects that firms’ management teams should incorporate. This assertion emanates from the fact that the firm’s operations form the basis of attaining competitive advantage. This element stands out clearly in the case of Coca Cola Amatil.
The firm has incorporated diverse operation management strategies. Consequently, the firm has managed to develop a sufficient competitive advantage in the Australian beverages industry. Through effective implementation of operations management, Coca Cola Amatil will stand a chance to achieve optimal market position.
Through the implementation of effective quality management techniques such as quality improvement, the firm will address changes in consumers’ product tastes and preferences. Lean management on the other hand will provide the firm with an opportunity to operate cost-effectively by eliminating waste.
Coca Cola Amatil cannot safeguard itself from risks. Therefore, effective implementation of risk management strategies will provide the firm will an opportunity to deal with threats and opportunities presented by the risk. Being effective in addressing the market demand is also another challenge that the firm’s management team faces, and thus the firm should incorporate effective inventory control strategies.
The strategies should contribute towards the attainment of efficiency in its production processes. Implementation of effective management information systems should also be another key strategy that the firm should incorporate.
Recommendations
The soft drink market in Australia has become very competitive due to the entry of other firms such as PepsiCo and Redbull into the market. Consequently, it is paramount for Coca Cola Amatil to develop a sufficient competitive advantage that will oversee its success.
Integration of effective operations management is one of the ways through which the firm can develop a sufficient competitive advantage. Therefore, to achieve this objective, the firm should take into account the following recommendations.
- Coca Cola Amatil should ensure that its operations department is effective in undertaking continuous quality improvement. In its improvement process, the firm should conduct sufficient market research in order to obtain sufficient market intelligence.
- The firm should develop and implement effective management information systems. The systems should include business intelligence, customer-relationship management systems, transaction process systems, and supply chain management systems. This move will ensure the firm’s effectiveness in its production and marketing processes.
- CCA should ensure that it undertakes market research to determine the prevailing risks. This aspect will safeguard the firm against evitable losses. Additionally, the firm should incorporate various methods of risk mitigation and avoidance in its risk management practices.
- Finally, the firm should ensure the efficient production of beverage products through optimal inventory management.
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