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Business Function and Processes. (Coca Cola Company) - Research Paper Example

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Business Function and Processes. (Coca Cola Company). Creativity and risk appear inexorably linked, as both are infinite in their diversity with the outcome that their permutation usually defies accurate description. …
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Business Function and Processes. (Coca Cola Company)

Download file to see previous pages... Because of the multidisciplinary nature of developing a design for a new product or service, most managers in this company considered risk calculations inappropriate within such a broadly creative and developed environment. This paralleled most scholars’ view that design is something that reflects both inner and outer environments of a firm with the interface between the two becoming that that meets the preferred objectives (Chiu, 2005: 6-7). This paper will seek to evaluate critically the implications of developing a decision to design and deliver a new product or service with which to enter either a domestic or an international market. Indeed, it is a heard task. The largest number of companies enters different geographical or international markets as a stratagem of finding and getting new customers. A product may be in maturity stage in one market while it might be in the introductory level in another. Making some product modifications like changing its size or packaging design can also prolong the maturity stage of the product. However, introducing a new product is a completely new story (Brooke and Mills, 2002:72). Every product must move through the four stages of a product life cycle, which include introduction, market growth, market maturity, and sales decline (Mohr, Sengupta, and Slater, 2009: 56-57). Therefore, when deciding to introduce a new product or service into the market, company decision makers must resolve to look into the kind of implications the new product will pose to pervasive issues affecting the company. Sustainability When Coca Cola is introducing a new product into the market, it means challenges and opportunities. A new drink going into the market must pass through the introductory stage of a product life cycle whereby, customers are not aware of the product and are certainly not looking for it. Coca Cola Company will likely operate at a loss because it is investing the new drink that is bringing in minimal sales. This new drink can pass through this life cycle stage commonly referred to as “kick them back” with much ease since Coca Cola is a large, well-known company and has many means of advertising a new product. This means that, when deciding to introduce a new drink, Coca Cola has the advantage of sustainability. This is because, when the drink enters the second stage of a product life cycle, market growth, its sales will increase at a quick pace (Daft, 2009: 280-82). At this stage, Coca Cola should make sure that the product moves through this stage at a slow pace since currently, customers are deriving satisfaction from the drink and continue to purchase it. As competitors start entering the market, they will try to imitate the product or make it better and at the process, the profits realized from its sales will start declining. At this stage, the drink maturity takes place when the industry sale level off and competition starts to grow stiffer. In some cases, some companies drops out of the market probably because that are inefficient and cannot withstand stiff competition. Decision basing introduction of a new drink must stage strategies on how overcome kick them back stage and withstand competition by engineering ways of establishing survival tools (Brooke and Mills, 2002:119). In order to achieve introduction of a vital new drink decision, Coca Cola’s design must cover the drink design, process selection, capacity planning, design of work systems, facility layouts, location planning, as well as decision analysis. The decision must bear in mind that satisfying customers begins with the new drink design ...Download file to see next pagesRead More
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