Business strategy Coca-Cola Essay
Also it helps to expand he business with more likely to use the resources more effectively (2011). In the coming paragraphs I will evaluate the business strategies for COCA Cola Company working as a consultant in I-J headquarters. Within the UK market the company has observed a range of down fall In Its sales for fizzy drinks like coca cola, diet coke and coke zero brand products. Company background The multinational American beverages and food manufacturing company COCA cola was founded In 1892 by AS grids, actually formulated by John In 1886, the company manufactures to over 200 countries and operate under 500 brands.
The company has turnover of $ 48. 21 billion each year. The I-J headquarter is in Hammerheads London. 1. 1- Explain strategic contexts and terminology – missions, visions, objectives, goals and core competencies. According to Linda Alicia the mission statement of Coca Cola Company is “to refresh the world to inspire moments of optimism and happiness and create value for making difference” (2009). The mission statement of an organization shows what the company is going to do in the future and how they are going to do (Arizona, 2012).
As the vision statement helps the firm to provide
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1. – Review the issues involved in strategic planning According to mike sterile the beverages companies Like Coca cola, Pepsi and Dry upper Snapped group, that the second half of the last year the company’s products sales started to decline in the US market, setter power who is a beverage analysts toys increased more in the late 2012, also the articles describes that it was affecting the consumer health very badly resulting in diseases like diabetes and obesity. The sales growth fell down by 0. 6% in 2012, as people are turning into the substitutes, like energy drinks and coffee and water, and thus the company is focusing more on providing a more selective range of water and energy drinks (2013). In another article y Stephanie storm told that the company sales went up in the beginning of 2013 but it shares fell down, the sales were around $ 1. 7 billion dollars with a rise 4% revenue as comparison to the last year, but the shares for the company market fell down by 2. 7 percent, “within the Europe market the sales were down more than the expected rate” said by Jack Russo a stock analyst. (2013). Now as we studied earlier that the company wants to become a worldwide brand of beverages and accelerate in the future, these are some of the recent strategic problems the company is facing this year.
1. – Explain different planning techniques The COCA cola company vision and mission for the year 2020 is to stay ahead in the future by following new trends and forces that will affect the business and prepare for the outcome. Read about network level strategy
Now in order to achieve these plans there are set of techniques used in each business, some of these are; BCC -growth share matrix: this matrix was developed by Boston consulting group in sass’s, this framework makes the companies to give priority and the resources distributed among the business. The matrix consist categories named as cash cow, star, dog and question mark. (Unknown, 2009). Cash cow represent the companies with high market share similarly like the stars but it also present companies with high growth prospects, while on the other hand the dog shows low on both prospects, and the question mark shows high growth but low market share.
Directional policies matrices: in such framework the company is able to compare its performance and take decisions of producing products to the market. SPACE & PIMPS matrices: to stay competitive in the market the company utilizes this matrix for the formulations of strategies for the organization. It stands for the strategic position and action evaluation matrix. While as the PIMPS strategy stands profit impact of marketing strategy, in which the company is able to analyze the relationship between the key strategic decisions and its results. 2. 1- produce an organizational audit for a given organization. The organizational audit comprise of several tools that enables individuals to know more about the culture and the recent situation of the organization.
There are a number of tools used for auditing organization one of which is scoping out the organization which comprise of the following;
Culture: Coca cola Culture is work as a team of one team, one company tit a one goal to achieve to bring people closer, with a diverse environment. Rooney, 2011).
Industry segments: coca cola uses three kinds of segments for its company, geographic, demographic and cryptographic segmentation, the company targets all age group people mostly families. Now to analyze what are the threats and opportunities that Coca cola will have in the market we will evaluate the SOOT analysis for the company
Strength: customer loyalty, suppliers bargaining power, extensive distribution channel, power advertising and marketing, in terms of value coca cola is the world’s best brand and the company CARS strategies.
Weaknesses: the main focus of the company is on carbonated and fizzy drinks, high level of debts,
Opportunities: growth in the bottled water, demand for dietary and low fat beverages and foods and acquisitions growth possibilities.
Threats: PepsiCo competitor, increasing demand change of consumer, saturated carbonated drinks market, gross and net profit decrease.
2. 2- carry out an environmental audit for a given organization. There are certain external and internal forces that impact the organizational activities; environment is one of those forces. For coca cola maintaining a good environment for its consumers and citizen is very important. As it is one of the company’s vision statement to contribute to build a safe and natural environment. As we know the main aim of the environmental auditing is to analyze the management’s activities towards the environment.
Political: as we know coca cola operates its business all around the world, so when entering a country for the distribution of the products they maintain the specific policies of each country, for example; like in Pakistan, Malaysia and Indonesia, they mention the word hall stamp on each of the products shipping to such countries.
Economic: as a business its responsibility of the organization to maintain a business that is effective for the economy as well and thus Coca Cola has been able to achieve this challenge. In the year 2006 and onwards after the recession the company started innovative projects on a low cost basis.
Social: health consciousness have more increased in this century than ever before and for such reasons coca cola demand for the fizzy and carbonated drinks have decreased thus to increase its value the many diversify its products into fruit Juices and low crabs drinks.
Technological: the coca cola company have adapted various advancements in its technologies that have been both effective for the company, consumers and environment, like plastic bottles which can be recycled as its easy and safe to use, also increase the production for the company. Within Britain the company has six factories all using modern equipment.
2. 3- explain the significance of stakeholders analysis Stakeholders are considered of major importance in coca cola Company, as these are the forces that impact the company operations both internally and externally. The main function of the stakeholders analysis is that it provides the level and range of impact the company and the stakeholders have on each other. The main stakeholders of Coca Cola Company are; civil society, government, customers, investors, employees and suppliers.
According to the coca cola company the story inside each bottle of their drink is written by consumers, customers, bottlers and non profit organizations and all those who have interest in our business. For further clarification and expansion in the stakeholders programmer from the last two years the company is working with the national government for the implementation of sports ND fitness programmer. The coca cola company helps to create value for its customers; also the company shows great response towards the social SIR community. While developing its marketing strategies for companies like coca cola it’s important to communicate and thus its company’s responsibility to be honest and fair.
In Coca-Cola Company the employees are considered as a great asset for the company and for such reason the company adopts such kind of environment which motivates employees. Growth or retrenchment. Realizing the current situation of the organization, for Coca Cola Company to accelerate on the path of growth there are various strategies to adopt some which are described below;
Pricing: pricing the products properly may lead to the company increase in the sales revenues. For a firm it is important to analyze that the price should be fair, it should cover the cost and also keep a comparison with the competitors. (Debra, 2012) Advertising: another major kind of strategy used in the marketing of the products, which enables the company to communicate its products with the consumers.
With the help of an effective advertising strategy, the company is able to grow sales revenues and better remote its products features in the market. (Felicia, 2011). The reverent advertisements like style caster, Sammie video that got viral and the polar bear add. Customer relationship management (CRM): with the help of the CRM the company is able to know more about customer, as doing so will make the company to differentiate its customers according to their needs. STEP Segmentation, targeting and positioning strategy: one of the most major strategies in marketing products, coca cola company targets almost all age of consumer market, also coke segmentation strategy is based on the demand of customers. Raja et al, 2010).
3. – select an appropriate future strategy for a given organization. As we know that COCA cola company within the I-J market faced a downfall in fizzy drinks as people are becoming more health conscious and likes to drink more other forms of water, now for COCA cola company to increase its value of drinking water in the near future it is important to adopt certain strategies, as a consultant I would suggest the McKinney growth pyramid; For the attainment of the future growth McKinney growth strategy is an effective approach, according to this strategy there are four basic parameters hose are: operational skills, growth skills, privileged assets and special relationship.
As the operational goals of coca cola is to find new customers, attain new ones and to bring a discounted accounts, now in order to achieve all this the company can use operational skills as said in the McKinney strategy which will attain higher profits and future growth. (M. Delaware, 2010). Another step is recognizing the privileged assets of the organization with coca cola the privileged assets are its brand, patent and distribution network. Within the management the growth skills are required to lead Roth with the help of new product development, expanding into new region and increasing acquisitions. Increasing level of relationship with the government and social authorities help to easily attain the goals.
4. 1- compare the roles and responsibilities for strategy implementation.
After evaluating the strategies it’s important to analyses it with the company team members and staff for the implementation of the strategy. As the strategic goal of Coca cola company is to be globally known for its products and services and attain future growth, as a consultant manager the team I appoint are:
Marketing manager: Within the team the marketing manager is responsible for the pricing, positioning, advertising and STEP strategies to achieve the substantial or limited growth. In the UK the coca cola company marketing director is shells McIntyre.
Planning technician: The main responsibility of a planning technician is to gather data and convert it into information while planning, as Coca Cola Company is using techniques like BCC by the technician.
Audit manager: The audit manager is external and internal the internal is responsible for comparing the audits with the annual audits plan, the person responsible for environmental audit is the environmental auditor manager whose main responsibilities is to coordinate the management activities with an effect on the environment.
Operational managers: Richard Davies is the operational manager at the Coca cola London Headquarters, and is responsible for the data entry, managing organization HER, payroll and helping in creating budget.
4. 2- evaluate resource requirements to implement a new strategy for a given organization. For the implementation of the plan and strategies there a number of resources required to full fill the needs and the requirements. These sources can be physical, financial, and human and time resource.
In the financial resources the company would be able recover all the costs for the redevelopment of the products, as coca cola aim is to increase the production for the non – fizzy drinks and water. The financial resources can be both internal external and internal, the main sources for the company would be; bank, shareholders, company capital and investors. As long as the human resources is concerned the company employees highly skilled and knowledgeable employees, in 2009 the company was awarded for the best place to work. The company provides excellent employees development with training and rewards. For the physical resources the company is covering around 200 countries and manufacturing 400 brands of products.
4. 3- discuss targets and timescales for achievement in a given organization to monitor a given strategy.