Coca Colas Strategic Management Process

Coca Colas Strategic Management Process In 1886, John Pemberton was able to make replacement product of alcohol by adding CO2 with sugar and other components such as caffeine and cocaine named the mixture Coca-Cola. He may have been inspired by the formidable success of Vin Mariani, a European coca wine. At the beginning, they consider it as a medicine to relieve headaches and gain energy. They were believed that carbonated water is good for health so the first sales were at Jacobs Pharmacy in Atlanta, Georgia. In 1888 Coca Cola drinks were sold by three different companies. But John Pemberton died in 1888 without realizing the success of the beverage he had created. Atlanta businessman Asa Griggs Candler secured rights to the business for a total of $2,300. Candler would become the Companys first president, and the first to bring real vision to the business and the brand. (Atlanta Beginning, 2006-2011) Asa G. Candler was a salesman and he was the one who put a good marketing strategy for introducing the product to the people by distributing apothecaries with clocks, urns, calendars and apothecary scales bearing the Coca-Cola brand. So the people were able to see it everywhere and that will attract them to buy Coca-Cola drinks. In 1895, Candler had built the first Coca-Cola factories in Chicago, Dallas and Los Angeles. (Atlanta Beginning, 2006-2011) In 1900, the company started to sell their product outside the country to England then they sold it in Canada and Mexico. In 1916, the product arrived to France, Jamaica, Germany and Cuba. In addition to that, the first factory for Coca-Cola Bottling in the Middle East was in 1944 in Egypt. Furthermore, there were many factories opened in the mid-20th century such as Iraq and Saudi Arabia to produce Coca Cola drinks. (Coca-Cola Offical Website, 2012) Industry, Segment, and Type of Products Coca-Cola is a global leader in the beverage industry; nowadays Coca-Cola Company provides more than 500 brands including soft drinks, fruit juices, sport drinks and other beverages in over 200 countries or regions and serves over 1.7 billion servings each day. Coca-Cola drink consists of: Carbonated water Sugar Caffeine Phosphoric acid Caramel color Natural flavorings The original copy of the formula which considers a secret formula for the drink held in safety box in SunTrust bank in Atlanta. Coca-Cola drink contains material that only produced in the main Atlanta factories Georgia, United States. Then the company distributes it to other Coca-Cola factories around the world. (Coca-Cola Offical Website, 2012) The target market for the Coca-Cola is all age group especially male and female teenagers, it is sold all around so that everyone can buy it and drink it. Furthermore, we could find on their TV advertisement that they target families to choose Coca-Cola drink as favorite family drink. Locations of operated company The Coca-Cola Company headquarters are in Atlanta, Georgia, and the United States. In addition, Coca-Cola Company has rights to operate across Europe which means they have rights to operate in 24 European countries. They sell their products in 200 countries all over the world. In other words, Coca-Cola Company is served all over the world (locations, 2009). Company Mission Their Roadmap starts with their mission which is enduring; it declares their purpose as a company and serves as the standard against which we weigh our actions and decisions: To refresh the world To inspire moments of optimism and happiness To create value and make a difference. (coca cola, 2012) Macro-environment (PEST) Analysis PEST Analysis PEST analysis identifies the changes in the market that occur because of the economical, political, technological and social factors. Political analysis: The Non alcoholic beverages such as Coca Cola are under the Food and Drug Administration. In terms of the regulations, the government controls over manufacturing procedure of the products. There are some factors that affect the operations of Coca Cola such as the changes in the laws and regulations (taxation requirements), accounting standards and environmental laws. Moreover, changes in the non alcoholic business era like pricing policy and competitive product pressures and ability to maintain sales in worldwide market compare to its competitors. Political conditions in international markets like governmental changes, civil conflict and restrictions on the ability to relocate the capital across borders. Its ability to enter developing market depends on political and economic conditions and their ability to form strategic business alliances with local bottlers effectively and to improve their distribution networks, production amenities, sales technology and equipm ent. So in some countries coca cola has problem in business expansion due to government regulation. (political and technological analysis) Economic analysis: Economic analysis examines the world, national and local economy impact. The recession that was in 2001 has impacted the operations of many companies, however, due to the aggressive actions of the US economy it returned to grow positively in 2002. The rise in the rate of interest also depressing business and it causes lower spending levels and redundancies. Because of the global recession, Coca Cola can borrow the capital and invest in the other products easily due to lowered interest rate. In addition, it can borrow to advance its research for new technology and products. Researching of the new products is cost effective and the company can sell its products at lower price so that its customers would buy more Coca Cola products at lower price. (Sociological and Economic analysis) Sociological analysis: It analyzes the ways how the changes in society affect organization such as changing in attitudes and lifestyles of the market (Sociological and Economic analysis). Most of US citizen are practicing healthier lifestyles. This has affected non alcoholic beverages industry mostly. Customers are switched to diet colas like Coca Cola Zero or light and bottled water instead of beer and alcoholic beverages. Time management has also increase and it is 43% approximately of all households. The need of bottled water and other healthy products are important in the day to day life. Middle aged customers are more concerned with their nutrition. This will continuously affects non alcoholic beverages industry by increasing overall demand and in healthier beverages also. Technological analysis: Many factors influence the actual results of the company to vary from the expected results such as the efficiency of promotional programs, marketing and advertising of company. The new technology like internet and television use incomparable effects for advertising and this makes products more attractive. In the past, entrance of plastic bottles and cans have increase sale volume of company because plastic bottles are easier to carry and can dispose them once they has been used. The technology is advancing continuously by the entrance of new machineries. Due to this, the production volume of Coca Cola has increase sharply in last few years. In Britain, Coca Cola enterprises have six factories those who are using modern equipment to ensure the top product quality (political and technological analysis). Industry Five Forces Analysis Porters Model Michael Porter, belonging to the Harvard Business School, introduced a business plan for industry analysis in the year 1979 known as Portes Five Forces. It essentially measures the competitiveness of the market with the sole aim to help the enterprises augment profit and enlarge their markets. The five forces can be used to determine the nature of the competition in the industry. In industry i.e. Coca Cola and the conclusion from the same is used to determine the nature of competition in this particular industry. The Porters Five Forces include: Threat of new entrants and potential competitors: It has been observed that in the beverage industry the entry barriers are relatively low. One can see the frequent emergence of new brands in the market which are usually priced at a rate which is lower in price as compared to Coke products. However, it cannot be denied that now Coca Cola is not seen as a mere beverage but as a brand. Owing to this very reason it cannot be ruled out that it has loyal customers who are unlikely to try any other beverage brand and quit drinking Coke. It is also worth noting that Coca Cola has a very significant market share for a long time. Threat of Substitutes: It cannot be denied that there are a number of other sodas and energy drinks in the market apart from Coke. But the threat against Coke is low. Firstly, due to the brand loyalty. Secondly, due to the fact that Coca Cola has such a market reputation where it has been successfully differentiating its products remarkably. Bargaining power of buyers: The third which pertains to the bargaining power of the buyer can be rated as low. It has been seen that the individual has no pressure on Coca Cola. Fountain sales, sales through vending machines, supermarkets, large scale retail sales and the convenience stores attached to the gas stations serve as the main channels of distribution. Pepsi, the main competitor is also priced almost the same as Coke itself. It has been however observed that the vending machines, convenience stores and supermarkets given to the fact that they have not many alternatives, have low bargaining power. It should also be pointed out here that given to the fact that people now are realizing the adverse impacts of the carbonated drink on health, they tend to turn towards fruit juices instead of carbonated drinks. Bargaining power of the Suppliers: The fourth which pertains to the bargaining power with the suppliers can be again rated as low. Coca Cola is primarily concerned with the task of supplying either fructose or sucrose and undertakes the bottling work. However, in countries like US Coca Cola buys high fructose corn syrup as its ingredient. As a matter of fact any supplier would not be willing to lose a huge customer like Coca Cola. Business Rivalry or rivalry among the existing firms: The market is essentially shared by Pepsi and Coca Cola which are always striving for international presence. It is seen that both the brands commit heavily to sponsoring outdoor festivals. Given to the fact that Coca Cola has a longer history, it resorts more to the classical way of advertising in comparison to its rival Pepsi which basically tries to captivate the attention of the younger generation by using Pop Stars as brand ambassadors. (Wright, 1999) Lifecycle Stage Coca-Cola has been constantly developing despite of their unrevealed formula that has not changed over the years, which has also been a huge success in maintaining their brand as a number one position. Industries evolve structurally as well as in terms of overall size over time. However, profits do vary throughout the lifecycle. The competitive forces that shape the business keep changing throughout the lifecycle. Hence several stages in the lifecycle of an industry are as follows: Embryonic Stage: In this stage where the industry is in its nascent stage faces minimal competition as there are few competitors and no threat from the substitutes due to the fact that the industry is new. Growth Stage: In this phase, the number of competitors increases. However, the rivalry between the firms is kept in check given to the fact that demand outstrips capacity of growth. This phase is often associated with profitability. Shakeout Stage: In this phase, economies of scale are achieved and due to large-scale consolidation barriers to entry become very high. Maturity Stage: In this phase, the focus is not on the growth, however, some competition from the late entrants become apparent. The power of buyer increases while the power of suppliers declines because now the capacity either matches or exceeds demand. Decline: In this phase, one can see increase in the power of buyer in sharp contrast to that of the supplier as capacity exceeds the supply. Hence, it can be said that this phase does pose new challenges. It is in this stage that we can see an eventual decline in the rivalry of the firms as the weakest of the competitors tend to withdraw from the industry. (Niemann, Tichkiewitch, Westkà ¤mper, 2009) Current Lifecycle Stage Currently Coca-Cola is under the maturity stage due to the solidity and capability of keeping a large and loyal group of stable customers. This stage is lasting longer than all other stages when it comes to western countries like the United States and Europe; considering Asia however, it is still in the growth stage. ( Coca-Cola Case Study) During the maturity stage, products usually go through a slowdown in sales growth which can affect cost management, product differentiation and marketing in the industry. Therefore, management has to pay attention to products in order to keep the percentage of sales growing, not forgetting the market share is the source of profitability. Description: http://image.slidesharecdn.com/49045118-project-of-coca-cola-110406035123-phpapp01/95/slide-28-728.jpg?1302079914 A way to extend its lifecycle being away from declining is to keep developing the product and/or the brand to make it more accessible based on consumer needs, by following some helpful strategies: Have a constant change in designs of both cans and bottles, for example: colorful cans and labels for bottles with tags on for festive occasions to make them more attractive. Produce smaller sizes of bottles and cans with lower calorie and sugar for kids. When buying packs of coke, they would come with a nice case to carry them easily everywhere. Produce Coke drinks with additional flavors (e.g. cherry, strawberry, grapeà ¢Ã¢â€š ¬Ã‚ ¦etc.) to grow customers demand and interest as well as to attract new consumer groups. Replacing glass bottles to plastic liter bottles will help increasing consumption. (Noor, 2011) Internal Analysis SWOT Matrix This section attempts to perform a strategic analysis of the brand which is the number one beverage maker i.e. Coca Cola. This is done by making an internal analysis of the company in order to understand its internal capabilities. This involves the development of such strategies which make Coca Cola distinct from its competitors. To compete in the international market Coca Cola has developed such strategies which creates values for its customers as well as its consumers like that of optimism, rejuvenation, accomplishment and difference. It follows the following path trying to pursue its strategic policies: by growing core carbonated soft drink brands at global level by growing in other core non carbonated brands like sports and energy drinks developing wellness platforms by initially focusing on tea, soy and juice by nurturing system health i.e. market by market focus Coca Cola should try to take into account the needs of its customers and create a greater customer value by creating adjacent business (Coca-Cola Offical Website, 2012) SWOT Analysis Coca Cola is the leading manufacturer, distributor and marketer in the beverage industry. However, given to the fact that certain regulations have been imposed in schools have affected the sale of soft drinks which seem to have a consequent adverse effect on the sale and operating margins of the company in the near future. Strength Coca Cola has leading market presence which is built on strong portfolio. Coca Cola, Diet Coke, Fanta and Sprite are the worlds top four non- alcoholic beverage brands which are owned by Coca Cola. Minute Maid, Coca Cola Zero, Dasani, Powerade, Simply, Georgia Coffee, Del Valle and vitaminwater. It is the strong brand value of Coca Cola that enables it to be recalled by the customer and consolidate its position in the market. The companys brand success is attributed to the its strong bottling and customer partnership It has a strong global footprints on the emerging nations Good financial resources (Coca-Cola Offical Website, 2012) Weaknesses Involvement in product quality issues Low health products Its own products are competitor of each other Opportunities In todays scenario an increasing awareness can be seen among the consumers regarding food and drink choices and it is owing to this reason that once can see the increasingly growing demands of healthy beverages and drinks. By taking such needs of the consumer into consideration the company can win the confidence of the consumers. There is good opportunity in health drink segment. Company can make its products healthier. Threats The potential threat to the company sales is that in the face of regulations placed on their sale given to the health issues involved. The production costs and capacity can also be affected by the water scarcity and poor quality. Another threat is from government regulations of some countries. (Coca-Cola Offical Website, 2012) Strategy Assessment Current Strategy One of Coca-Cola company goals is to maximize growth and profitability to create value for their shareholders which will also create advocacy for the brand under the following strategies: Transforming our commercial models to focus on our customers value potential and using a value-based segmentation approach to capture the industrys value potential. Implementing multi-segmentation strategies in our major markets to target distinct market clusters divided by consumption occasion, competitive intensity and socioeconomic levels. Implementing well-planned product, packaging and pricing strategies through different distribution channels. Driving product innovation along our different product categories. Achieving the full operating potential of our commercial models and processes to drive operational efficiencies throughout our company. (Strategy and Competitive Advantages, 2011) Other effective strategies to achieve the business goals are: Deliver shared value Engage the market through storytelling and thought provoking ideas Be a leader in the cultural dialogue Create a network advantage (Creating Advocacy, 2012)

Humorous Wedding Speech - Written Guidelines from the Bride

Humorous Wedding Speech - Written Guidelines from the Bride Good evening Ladies and Gentlemen - I must inform you that I’ve had quite a heavy night and I’m still feeling a little fragile. So please spare a thought and try not to clap too loudly during my speech because I’ve got a dreadful hangover and a splitting headache. You’d think I’d know better than to be out drinking in the early hours of the morning the night before a big wedding - but David’s a good friend (mate) and he needed some company. Now, I'm sure a number of the guys here today have been a best man at a wedding before, but I wonder how many of you have ever received written guidelines from the bride to be? Before I go any further, I'd like to explain that two weeks ago I received this email from Phylis: I was very pleased when David asked you to be best man at our wedding. I knew that by selecting you, he ha...

Conflicts Are Important Worksheet Essay

1. Pseudo conflicts: A pseudo conflict is where two people are arguing on the same thing only because of their own misunderstandings and misperceptions of what the other person is saying they are arguing on the same side without realizing. In truth they are arguing for the same side they just can’t realize it because of their own misconceptions. A pseudo conflict can be easily resolved by people just understanding one another better. 2. Fact conflicts: Fact conflicts are caused by being misinformed, not having enough information to make good decisions and determining what data is relevant. Conflict can also arise when there is disagreement on information collection and communication. 3. Ego conflicts: An ego conflict is where one person goes around picking on and teasing everyone else. They think that they are better than them in every way shape or form, these conflicts can easily be avoided by not thinking your better than everyone else. Everyone is equal whether they like it or not. No one is better than anyone else. It just happens that some people think they are better than other people and so ego conflicts arise. 4. Value conflicts: Value conflicts arise from two different people or groups with different views on something, Such as world views. Or a common one is two groups with different views on good and bad. One group may be stricter than the other on what’s good and what’s bad, it will then clash with the other group who is less strict. 5. Need conflicts: A need conflict arises when someone starts acting so that they can get one need and it is contradictory to how they need to act to get another need and it presents a major conflict. This conflict can be resolved by getting both needs one at a time but humans by nature want all needs at once and this makes a conflict. Part 2: The Five Conflict Management Styles Describe each of the five conflict management styles and explain the strengths and weaknesses of each. Use paragraph form. 1. Avoiders: The avoider style of managing is not actually thought as a management style at all by many but it reality it is. It arises when someone runs from a conflict or ignores it. Someone may use the avoider style out of outright fear or sometimes many other concerns that can come from an unresolved conflict. With the avoider style it doesn’t solve anything and very often makes things worse the people do not understand why the avoider refuses to face the conflict at hand and the avoider cannot understand the problem or the other side’s views. 2. Accommodators: The Accommodator is much the same as the avoiders only slightly different in the way that he just agrees to everything, avoids solving the actual problem to placate the other side. If forced to face the problem an accommodator will back off and just follow in the footsteps dictated by the other side, they will be in total denial of any personal needs in favor of meeting the other sides personal desires. The unfortunate downfall of this solution is that problems continue or grow worse or new problems may arise from it. Imagine a mother who gives her daughter whatever she wants whenever she wants simply to keep conflicts from arising. Yes it stops her daughter from whining and complaining. 3. Forcers: The very opposite of an accommodator would be a forcers also known as the competitor. With the forcer they drive to win the argument/battle at all costs even if it means ending a relationship. The competition style can be healthy when it is focused solely on the issue at hand and not on the people around the issue. Such as when someone starts in on each other it can be friendly banter until someone’s mother is brought into it. Fights between two people often happen during the forcers style but never is it healthy. 4. Compromisers: With the compromiser style it is used to try and meet some of the demands of both sides. Unfortunately with this style everyone wins a little but also they lose a little. Like with two teenagers fighting over the remote to a TV the mother comes in and takes away the remote all together. It resolves the situation but no one is happy with it. It leaves the solution gone but no one happy. People who use compromise are actually making a lazy halfhearted attempt at collaboration. 5. Collaborators: With the collaborating style it gets all parties in the conflict together to come up with a peaceful solution that leaves each party happy. In this type everyone is heard, everyone is happy, and above all relationships are preserved, whether they are relationships between a man and a woman or a relationship between friends or business people. The collaborative style takes a while to plan and execute. While the problem may become worse as time goes on it always leaves everyone happy. Part 3: Collaborative Communication List two methods of collaborative communication and describe how using them can help you avoid conflicts. Two methods of collaboration communication are Boards and Huddles. With Boards it’s good to have something for the all to see besides hand out’s when you have the group all together. That is where white boards or chalk boards come in major handy. That way you can right now main ideas and topics for all to see. This will help stop conflicts because everyone is seeing the same thing so they can’t say that their not or say that some are getting more details then they are. The second method is called huddles. Huddles means when you get your group together to brainstorm or think about something make it small little focused groups. Having it in small focused groups will cut down on misunderstandings and confusion which will then help you prosper and fewer arguments may break out.

The Risks Of A Risk Assessment - 1025 Words

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