Amcor LTD

  • Category:
    Business
  • Document type:
    Assignment
  • Level:
    Undergraduate
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    2
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    1148

7Amcor Ltd

AMCOR LTD

Location of Institution

Amcor Ltd

Background of Amcor Ltd

Amcor Ltd was established in the 1860s in Australia, and is one of world’s leading packaging companies. Amcor Ltd is headquartered in Melbourne, Australia. Its business segments include flexible packaging, specialty packaging, and rigid plastics. The CEO of Amcor Ltd is Ron Delia, the CFO is Michael Casameto, and the human resources manager is Steve Keogh. After nearly 100 years in business, Amcor decided to start expansion in the 1970s and 1980s. The expansion was facilitated through business acquisitions and partnerships with an aim of diversifying the activities carried out by the company. The company is known around the world as a leader in packing innovation. Additionally, the expansion of the company has seen it invest in countries such as the U.S, China, Brazil and Switzerland underscoring its global presence (Amcor Ltd, 2016).

The values of the company include safety of all their products, integrity in all their activities. Moreover, Amcor Ltd also encourages teamwork among their employees, and being a socially responsible organization. Furthermore, innovation in their activities is also another value that guides Amcor Ltd.Amcor Ltd offers packaging services for companies that deal in products such as beverages, food, hospital sterilization units, household items, medical services, and pharmaceuticals as well as tobacco. It is of merit to note that the company provides these services in over 40 countries around the world. Additionally, the company employs over 29,000 employees in the countries it has operations (Amcor Ltd, 2015)

Reasons for partnership with Brambles

Amcor Ltd needs to venture into the new business because of three primary reasons. Firstly, there is the need to increase market share. Secondly, the partnership with Brambles will stimulate revenue growth for the business. Additionally, the partnership with Brambles will offer the business to diversify its product offerings.

Firstly, the partnership with Brambles will provide Amcor customers with packaging efficiency especially in terms pallet packaging. Additionally, the partnership will also minimize the damage during transportation for products such as beverages, medical as well as tobacco products. The storage capacity in the pallets and the containers will also be maximized through the partnership. Amcor Ltd currently holds a significant market share in the packaging industry, it needs consider the potential of enhancing the market share further, and this will be viable through the partnership with Brambles. According to Zook and Allen (2003), there is need for companies to consider growth outside their core business. This need includes diversification to other areas of business that is not directly related to the core business. Through the partnership with Brambles, Amcor Ltd will expand its market share even though it is not related to the core business. Allen (2015) underscores the importance of partnership with Brambles s in sustaining the growth of a business. The partnership with Brambles will help the company attract new customers through the additional services which they will offer. Further, the partnership with Brambles will also enable the Amcor Ltd to enter into new markets where it will offer its services (Sternberg and Krauss 2014). However, Amcor Ltd has to ensure that the partnership with Brambles gives it a competitive advantage.

Secondly, stimulating business growth is also the other reason for the partnership with Brambles. It is fact that Amcor Ltd has enhanced its revenues through the financial years; however, the company needs the partnership with Brambles to boost its profitability even further. Gupta, Guha and Krishnaswami (2013) link firm growth to the profitability of a firm. A firm that generates increasing revenues each year is able to finance it investment activities. For example, in 2015, Amcor posted sales of over $10 billion, and this was a 2.5% increase from the previous year (Amcor Ltd, 2015). This reveals the fact that Amcor Ltd can comfortably finance the partnership with Brambles, and stimulate revenue growth of the company in future.

Timeline for Implementation

The partnership with Brambles is expected to take about five months before it is finally launched into the market. The table below summarizes the activities that will be undertaken before the partnership with Brambles is launched.

Person Responsible

November

December

February

Identification of Venture

Product Development

Feasibility of venture

Product Development

Presentation of venture to management

Product Development

Analysis of funds required

Finance and Accounting Department

Approval of venture

Top management

Launch of venture

Marketing department

The process of launching the partnership with Brambles will start by an identification of the ventures available that Amcor can pursue. This will be done by the product development team at Amcor. This process of identification will take place in the month of October 2016. This will subsequently be followed by conducting a feasibility assessment of the partnership with Brambles. According to Talloo (2007), it is important to conduct a feasibility assessment of a new venture. This assessment will help an organization determine it the venture it is about to undertake is viable. Moreover, this assessment answers questions such as the resources available in the organization that can support the partnership with Brambles. The assessment will also enable the organization identify the market opportunities that the new venture can fulfill (Co et al. 2007). This assessment will be conducted by November 2016.

Once the product development team has determined the viability of the partnership with Brambles, the idea should be presented to the top management. According to Dana (2011) the person presenting the idea to the top management should ensure that they highlight the benefits the organization will accrue by pursuing partnership with Brambles. In the case of Amcor Ltd should inform the top management that the partnership with Brambles will not only stimulate revenue growth but also enhance market share. This will be done during the month of December 2016. The finance department will then examine the venture proposal and determine the funds that are required to pursue the venture. It is important to ensure that the organization has enough funds to invest in the partnership with Brambles, and if additional borrowing is required (Hayton, Salvato and Manimala 2014). The last stages of the timeline involve approval and launch of the venture.

Bibliography

Allen, K.R (2015). Launching partnership with Brambles s: an entrepreneurial approach. Cengage Learning: Boston.

Amcor Ltd. (2015) Annual Report. 1st ed. Melbourne: Amcor Ltd, 2015.

Amcor Ltd. «Amcor At A Glance». Amcor.com.

Co, M. and Mitchel, B. (2007). Fresh Perspectives: Entrepreneurship. Johannesburg: Pearson South Africa.

Dana, L. (2011). World Encyclopedia of Entrepreneurship. Cheltenham: Edward Elgar Publishing.

Gupta, Priya, Samapti Guha, and Shiva Krishnaswami (2015). «Firm Growth and Its Determinants». J Innov Entrep 2.1: 15.

Hayton, J., Salvato, C. and Manimala, M. (2014). Global entrepreneurship. London: Routledge.

Sternberg, R. and Krauss, G. (2014). Handbook of Research on Entrepreneurship and Creativity. Cheltenham: Edward Elgar Publishing.

Talloo, M. (2007). Business Organisation & Management. New Delhi: Tata McGraw-Hill Education.

Zook, C and J Allen. «Growth outside the Core». Harvard Business Review.