COTT CORPORATION STRATEGIC ANALYSIS 2 Cott Corporation Strategic Analysis Cott is the world’s largest retailer brand beverage company. With approximately 4,000 employees, Cott operates soft drink, juice, water and other beverage bottling facilities in the United States, Canada, the United Kingdom and Mexico. Cott sells beverage concentrates in over 50 countries around the world. It partners with the world's leading grocery and mass merchandise retailers to build their private label programs with high-quality carbonated soft drinks, juices, smoothies, sparkling and flavored waters, energy drinks, sports drinks, juices, ready-to-drink teas and other non-carbonated beverages. The environment of the Industry in which the organization …show more content…
conducts business is an important determinant of the definition of operational guidelines. Cott Corporation can be viewed both as dynamic, market responsive, committed and persistent with a simplistic mission of enhanced continuously increasing revenues, improved cost efficiency and market penetration. A strong manufacture base internal to Cott Corporation as a business enterprise puts it in a strong position to have optimized deliverability efficiency. The basic nature of all raw materials involved in the production of either beverages (Fruits, Concentrate, Chemical Compounds, Water) or packaging material (Bottles, Cans and other Containers) and low price due to a lack of carrying forward the raw materials as the final message to the end user empowers Cott Corporation to be subjected to low Supplier power (Cox. 2001). The allure of high revenues to new firms refers to increased competition levels within the market due to the continuous Threat of new entrants for Cott Corporation is Low. High barriers to entry in the form of amount of capital investment as well as risk involved. The saturated presence of high performing competitors such as Shweppes, Pepsi and Coke with the latter two COTT CORPORATION STRATEGIC ANALYSIS 3 being the primary market leaders also minimizes statistical probability of new competitors entering the market (Caves & Porter. 1977). Rivalry within the markets for Cott Corporation is high. This is because of high number of corporations already in the market. The primary focus is on presenting a cost efficient product. In order to achieve maximum profitability high volumes, high volumes are capitalized in large economies of scale. The cost efficiency of the product leads to a low customer switching cost, further adding a high degree of ferocity in the continuous pursuit for contracts. As a seller, the power Buyer’s exert over business decisions Cott Corporation can be categorized as Medium.
The flooded market in which Cott Corporation finds itself along with low switching costs of changing purchase centers for customers makes Cott Corporation more conservative of public demands (Provan & Gassenheimer. 1994). The temporary nature of work obtained by the enterprise as a contractor and the size of the distributor further add the defining guidelines for the company to adhere to for ensured going concern. By virtue of restricted cost, and a wide variety of substitutes available for all known products, Cott Corporation has to stay wary of a Medium Threat of Substitutes (Product / Service). The inherent risk of a large number of product / service substitutes makes it a necessity for the enterprise to diversity its business offerings in order to capitalize on various marketing strategies to accumulate maximum revenues. In order to enhance the understanding of motivators behind Cott Corporation’s decision, the demographic of the individuals or other legal entities which stand a chance of being affected needs to be sought out. Stakeholders, as they are normally called within corporate culture, are a COTT CORPORATION STRATEGIC ANALYSIS …show more content…
4 unique aspect of organisational environmental factors which can be found both internally or externally to the business. Internally, Stakeholders come in the form of Employees, Management as well as Ownership. The financial wellbeing of the said individuals depends linearly on the good financial health of the company. The corporation due to its incorporation has public funds invested in it. This helps in explaining the primary focus on positive and increasing cash flows. Adding stringent cost efficiency to maximize profits despite a low standard unit revenue level. This is important for the satisfaction of shareholders, categorized externally amongst stakeholders.
The working relationship established with Government, Suppliers, Creditors, Customers and Society highlights Cott Corporation’s going concern and business activities being a common consideration for all parties. The ability of Cott to conduct Cash favorable business activities improves external factor of satisfying stakeholders. The cash consideration as well as ethical considerations enforces Cott Corporation to make business decisions satisfying Customers and Society about those concerns. Cott Corporation primary organizational strength is its extensive Manufacturing Network. The organization has 15 beverage manufacturing facilities within Canada, United States and Europe. Cott produces private label brands for bigger companies such as Wal-Mart in the US, and President’s Choice drinks for Loblaw Cos Ltd. in Canada. The expanding product introduced for diversifying their business offering and target market has notably improved the company profile. This has also strengthened its position in the market as a viable rival. The additions to products are: COTT CORPORATION STRATEGIC ANALYSIS 5 Hot chocolate, coffee, malt drinks, creamers and
cereals Energy drinks & concentrated dilute-to-taste fruit drinks Contract manufacture / packaging of cereals New Packages/Channels Pouches, jars, sticks, sachets and block-bottom bags In-cup cereal products Bulk five liters PET Foodservice and Vending As a result of continued production, cost efficiency as well as smart business decisions, Cott Corporation has approximately had 110 million USD in revenues and 17 million in EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) LTM (Last Twelve Months) at March 29, 2014. The reduced reliance on large format retail while increasing the volume of direct sales to customers by placing vending machines like market giants Coca-Cola and Pepsico. Consistent Contract manufacturing growth allows for projection of revenue by 2016. On Dec. 12, 2014 Cott Corporation closed the acquisition of DSS Group, Inc. It is the sole stockholder and parent company of DS Services Holdings, a leading bottled water and coffee direct-to-consumer services provider in the United States for approximately $1.25 billion.
product that has the added value of being cost effective. However, in China, cost effectiveness
...ts and special deals with PBRs. Thus, the firm’s pricing policy should be flexible enough as not to discourage the price-sensitive consumers and yet allow the company to sustain ever increasing product and service development costs.
Identifying stakeholders for an intervention is essential. Stakeholders are all of the individuals who are affected by and issue or problem (BOOK). The stakeholders are going to be the individuals who can work towards changing the problem and who deal with the concern at the front lines (BOOK).
Stakeholder analysis is important for successful implementation of projects and/or strategic activities within any organisation. It is used to analyse the stakeholders in order to understand them and classify them according to their power, influence and interest. Stakeholders are people who have an interest in a commercial entity including those within the organisation and outside. These include the boss, senior executives, customers, suppliers, government, your co-workers, the team and others. All these people are important in the implementation and success of strategy.
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
Threat of substitutes in market as best quality is not always a priority for some customers as they are price sensitive.
Stakeholders are those groups or individual in society that have a direct interest in the performance and activities of business. The main stakeholders are employees, shareholders, customers, suppliers, financiers and the local community. Stakeholders may not hold any formal authority over the organization, but theorists such as Professor Charles Handy believe that a firm’s best long-term interests are served by paying close attention to the needs of each of these stakeholders. The modern view is that a firm has responsibilities to all its stakeholders i.e. everyone with a legitimate interest in the company. These include shareholders, competitors, government, employees, directors, distributors, customers, sub-contractors, pressure groups and local community. Although a company’s directors owes a legal duty to the shareholders, they also have moral responsibilities to other stakeholder group’s objectives in their entirely. As a firm can’t meet all stakeholders’ objectives in their entirety, they have to compromise. A company should try to serve the needs of these groups or individuals, but whilst some needs are common, other needs conflict. By the development of this second runway, the public and stakeholders are affected in one or other way and it can be positive and negative.
Regarding to organizational stakeholders, there are three main groups of stakeholders: customers, employees and investors. The company attempts to link stakeholders’ needs and expectations to the company’s goals. For customers, the company must treat them fairly and honestly. For employees, the company needs to treat them fairly, make them a part of the company and respect their needs. For investor, managers should comply with the accounting procedure, do not manip...
Reducing risk ; reducing the quantity of manufactured so that reducing burden of stock and burden of frequent discount sales
A substitute performs the same or a similar function as a product by a different mean. They belong to a completely different industry. High threat of substitutes impacts industry profitability negatively.
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
to choose from and, it is very probbable that they will choose the cheaper and
Stakeholders’ analysis is the analysis which tells that how the company is dealing with the people which are directly or indirectly related with the company’s operations. These are called stakeholder and they include the employee, society, suppliers, buyers, shareholders, got and other tax related companies.
In all reality, all businesses will, in some way shape or form, complete all of the marketing activities, even if completing these activities is not their main goal. (Dlabay 2006.) These marketing activities are product, place, price, and promotion. A business tool called that marketing mix takes all of these activities and puts them together in a way that can be used to help improve a business’s marketing strategy. Product is what the company is selling; Place is where the consumer will obtain this product; Price is what the consumer will pay for the product; Promotion is any type of communication that is intended to remind, inform, or persuade. (Dlabay 2006.) The marketing mix and the four P’s describe very well what business marketing is all about.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.