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Essay about Australian Beverages Ltd

Satisfactory Essays
CPA 117: GLOBAL STRATEGY & LEADERSHIP
CASE STUDY: AUSTRALIAN BEVERAGES LTD (ABL)

WHAT TYPE OF ORGANISATION IS ABL?
Company Type: Australian Public Company, Limited by Shares * ABL is a listed company on the ASX (1996) * Commenced operations in 1937 * Moved into Non-CSD’s in 1984 starting with fruit drinks (acquisition of fruit juice manufacturer in VIC) * Entered milk market in 1990 (acquisition of manufacturing facilities from a dairy co-operative) * Entered snack food and complimentary foods market * Operates on a multi beverage strategy (product range has been expanded to cover all categories of the non-alcoholic beverage market. * IS NOT INVOLVED IN BOTTLED WATER SEGMENT OF INDUSTRY! * In 2011,
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CATEGORY | Diet CSDs | Full-calorie CSDs | Bottled water (Still & Sparkling) | Milk drinks | Fruit drinks | Sport drinks | Ready to drink tea & coffee | Energy drinks |

ABL recently acquired several coffee bean businesses to capitalise on the growth of the coffee market in Australia. (Exploring a new product idea Ready to drink chilled coffee)
Stage of industry life cycle?
Australian Non-alcoholic beverages – MATURE
Issue: How to manage market, assets
Evidence:

* Competitors are focused on efficiency and cost control and achieving economies of scale in production, as well as market segmentation * Decline in market of CDS’s (expected strong decline in next 5 years) * Market is mature however, market is moving from CDS’s to other healthier beverages

Bottled Water – GROWTH
Issue: How to grow
Evidence:
* Industry in growth stage as stated by case facts (Fastest growing segment in industry) * Industry rivalry is relatively low as major competitors are focused on supplying through different distribution channels. * Report from Global Earth Institute concluded Global consumption of bottled water rose 56.8 per cent to 164 billion litres from 2007 to 2011. * Growth achieved due to * Increase in per
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