In any business internal influences of change play a major role in achieving effective profitability management. Coca cola amital which is a large transnational corporation which specialsiles in the production of fizzy and concentrated bevarages. CCL which competes in such a competitive industry must make sure that they have the utmost productive strategies in order to compete on a world wide scale. CCL internal influences of change significantly impact on the profitability of the business, the goal of the business is to make profits and reach their goals this will be achieved if profitablity management is effective.
The internal influences of change are accelerating technology, ecommerce,new systems and procedures, new business cultures. Accelerating technology is advances in technology such as information and communications technology. Firstly accelerating technology has meant that information can be transfered around the world alot quicker meaning that people can now work from home. Working from home creates many opportunites for people as they can save on costs of renting a shop etc. CCL accelerating technology changes have been state of the art warehousing,electronic ordering and the $65 million dollars spent on operating systems upgrades.
Ecommerce is the use of electronic communications to do business. This covers all transactions made by electronic methods. The main types of e-commerce are Business to customer and business to business. Ecommerce is when a customer purchases a product online by credit card. Or when a business pays it accounts,sends quotes or orders suppplies electronically. The main advantage of ecommerce is that it dramatically reduces the cost of doing business. New system and procedures are new and improved ways of doing business. This is for example the internet or the self serve checkouts in coles or woolworths.
It also can be new ways of performing taks. CCL for example monitor the forecast anticiaptiating hot weahter so they can produce more fizzy drinks. New business culture. Business culture is a set of mostly unwritten or informal rules that spell out how people are to behave most of the time. A business must first have a good business culture if it is successful. New business cultures have to be implemented all the time for a business to stay competititve. New business cultures may cause conflict between employees as they may have differing opinions. CCL had this problem when they bought out neverfall water.
This was because it was a smaller company and CCL wanted to change the way it was going to run which caused conflict between the employees. There are many profitibility management actions that a business can take in order to achieve its goals. They are Cost controls and Revenue controls. The internal influences impact on profitability managment in many ways. Accelerating technology alows business to reduce their expenise minimization in many ways. CCL has done this with their factories where now robots do the majority of the production instead of labour which in the long fun reduces cost.
It also means that variable costs will improve as their is a set price for the robots. Ecommerce effects revenue controls also. Ecommerce helps a business reach its objectives as it has enabled business become alot more effecient. They have become more efficient as ecommerce has allowed them reach greater networks, sell online and a reach wider audience. CCL do this in the way that they have a website which allows people to learn about the products they sell and also has a online store. New systems and procedures effects profitablity in many ways. New system and procedures are new and improved ways that a business can do things.
CCL do this by monitoring forecasts which enables them predict hotter weather meaining they will increase supply of coke. Also CCL has moved its workers in team which enables workers to work for each other rather then individually. This also means that the teams can form cost centres which in turn helps improve profitibility managment. Overall internal influences can impact profoundly on proftibility managment. CCL certainly demonstrate why they are a market leader in their field as they carefully analyse there internal influences and how they can impact profitibility managment.