Operations Management in Coca Cola

Amatil Case Study

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Updated: Jul 22nd, 2021

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.

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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.

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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.

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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.

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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.

A. 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.
B. 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.
 C. 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.
D. Finally, the firm should ensure the efficient production of beverage
products through optimal inventory management.

Reference List

Basu, R & Wright, J 2007, Total supply chain management, Butter worth
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Beynon-Davies, P 2002, Information systems an introduction to informatics in

organisations, Palgrave, New York.

Cachon, G & Terwiesch, C 2009, Matching supply with demand an introduction

to operations management, McGraw-Hill/Irwin, New York.

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