Strategic Analysis: Amcor Limited
Abstract
The adverse implications of environmental pollution such as prolonged droughts, global warming, respiratory diseases, and loss of sea life have led to increased calls for the manufacturing sector to embrace means of production that are environmentally friendly. Despite these calls, most organizations have been reluctant to adopt effective strategies to lower the rate of pollution they cause to the environment. This reluctance emanates from the perceived increase in operation costs by adopting new environmentally friendly means of production. Consequently, this strategic analysis explores whether Amcor limited should use recycled materials to build their products without re-dying or modifying the material in any way. Besides, this paper explores the history of Amcor, its mission, and position in the market. Importantly, this analysis offers a rationale for why the company needs to adopt the specified sustainability initiative.
Strategic Analysis: Amcor Limited
The Organization
Environmental protection is one of the most debated issues in the contemporary society. The adverse implications of environmental pollution such as prolonged droughts, global warming, respiratory diseases, and loss of sea life have led to increased calls for the manufacturing sector to embrace means of production that are environmentally friendly. In fact, environmental protection is among the fundamental corporate social responsibility actions that modern organizations address. This strategic analysis explores whether selected firms should use recycled materials to build their products without re-dying or modifying the material in any way. Importantly, the firm selected for this analysis is Amcor limited.
Several reasons justify the selection of Amcor limited for this strategic analysis. Nonetheless, the type of products that Amcor limited produces is the fundamental reason why the firm was selected for this analysis. Amcor limited produces an array of packaging materials such as cartons and plastic containers. In the society, such packaging materials form the bulk of solid wastes that pollute the environment. According to Jain et al. (2017), the non-biodegradable attributes of most packing material particularly plastics used around the world makes them one of the key pollutants of the environment.
Expounding on their stance, Jain et al. (2017) point out that these non-biodegradable packaging materials emit greenhouse gases such as carbon dioxide that contributes to global warming. Besides, these packaging materials inhibit plant root penetration in the soil and suffocate water living animals. Consequently, Amcor limited was selected since it is a global manufacturer of packing materials. Therefore, the firm’s actions to use recycled materials in its production process can significantly lower the amount of environmental pollutants emanating from packing materials.
Secondly, Amcor limited was selected due to the extensive links that the firm has with companies dealing in sectors such as foods and beverages, healthcare, home care and pet care. As a result, the firm can use these links to encourage its trade partners to adopt environmental sustainability initiatives. Importantly, this organization was selected due to the past legal battles that it has faced on environmental pollution. In keeping with Inside Waste (2011), Amcor Limited was fined $104,000 for discharging oil into the Yarra River. Such legal issues confirm that the firm needs to reshape its environmental-related actions to enhance its acceptance in the current environmentally sensitive business environment
Amcor’s History and Market Position
Founded in 1860 as Australian Paper Manufacturers, Amcor has grown to become a global leader in the production of packaging products. The company was renamed to Amcor limited in 1986 to attain a global perspective (Amcor, 2018). At present, the company has attained this global this recognition and is one of the leaders in the packaging industry. The success that the firm enjoys in the packaging industry has seen the firm expand to its operations to over forty nations. The presence of the company in these nations asserts its global attributes. Presently, the firm employs more than 35,000 workers in its various branches across the world. In the fiscal year 2017, the firm made sales amounting to over $9 billion. This sale amount confirms the market leader position held by the firm in the packaging industry. In fact, the firm has built a solid reputation as a reliable supplier of packing material across the world.
Amcor’s Staff, Relations, Corporate Culture, and Mission
The hyper-competitive nature of the contemporary business setting obliges organizations to invest in their workforce continuously. In line with this requirement, Amcor states in its website that it is committed to improving the skills and competency of its employees. As earlier stated, the firm employs over 35,000 people. Essentially, Amcor is driven by a culture of innovation, operational leadership, human resources development, and producing products that align with the needs of the customers.
For that reason, the firm’s culture focuses on maximizing value for its stakeholders. Besides, the firm centers all its operations on its mission, which is to be a dynamic and innovative company. This mission statement has enabled Amcor to produce diverse and differentiated products. This ability to offer highly differentiated and quality products has enabled Amcor to create cordial relations with renowned organizations such as the United Nations.
Rationale
As a global leader in the production of packaging materials, Amcor should use recycled materials to build their products without re-dying or modifying the material in any way. This sustainability initiative is achievable because Amcor produces high-quality packaging materials that are not deformed easily. In fact, Amcor has realized the potential benefits that it stands to gain together with its customers if it adopts effective recycling actions. As stated by Allen (2018), Amcor is the first global packaging that has pledged to make all of its products recyclable or reusable by 2025.
Firstly, this sustainable initiative makes sense for the organization due to the fact that customers are increasingly demanding for reusable or recyclable packing materials as a move to attain environmental sustainability. Hence, adopting this sustainability initiative will enhance the acceptability of Amcor products in the market, as customers will view the firm as committed to enhancing environmental protection.
Secondly, this initiative aligns with Amcor’s mission of enhancing environmental sustainability. In their analysis, Song, Li, and Zeng (2015) point out that strategic solid waste management through actions such as recycling is one of the critical ways of reducing environmental contamination. Besides, recycling and reusing lower resource consumption by companies. In this respect, adopting this sustainability initiative will not only enable Amcor to attain it environmental protection mission, but it will also allow the firm to reduce its expenses on raw material procurement significantly.
Consequently, Amcor’s use of recycled materials will influence positively on the company’s strategic management actions and create value for all its stakeholders. Precisely, this sustainability action will depict the firm as being ethical to its global customers. Besides, it will reduce the firm’s expenses on raw materials thus creating value for its investors. This reduction in the cost of raw material will subsequently result in the reduction in the cost of the company’s products thus favoring its customers. This sustainability initiative will positively influence the company and its stakeholders.
References
Allen, D. (2018, January 31). What does Amcor’s sustainability pledge mean for pharma and MedTech?
Amcor. (2018). Our History.
Inside Waste. (2011, June 23). Amcor fined $104,000 for discharging oil into the Yarra.
Jain, P., Jain, A., Singhai, R., & Jain, S. (2017). Effect of Biodegradation and Non-Degradable Substances in Environment. International Journal of Life Sciences (IJLS), 1(1), 58-64.
Song, Q., Li, J., & Zeng, X. (2015). Minimizing the increasing solid waste through zero waste strategy. Journal of Cleaner Production, 104, 199-210.