Macgiavelli's Relationship To The Coca-Cola Company - Research Paper Example

Introduction In the current business of today, there is a need to create a sustainable value for shareholders and customers. For the above to be achieved, there is a need for the companies to venture into effective alliances. These alliances will enable the companies to obtain more and efficient market presence. These alliances will strengthen the companies’ current and future strategies. For the alliances to succeed, they majorly depend on how they are being managed, its strategic circumstances and its organization structure. In the part of the management, alliance management can either be centralized organization or the duties distributed across all business units. The current business world is growing very first, and the customers demand is highly increasing and becoming more sophisticated. The existing companies are facing a big challenge on how to cope with this sophisticated custom demand; the first growing technology, competency and resources. For the companies to solve the above challenges, there is need for an alliance that is the only solution to the first growing market. The strategic alliance will enable the companies to access new markets, obtain cutting-edge technology, expand geographic reach, and cope with the first competition being experienced (Hoskisson et al., 186). These alliances have allowed most organizations to compete more effectively and have also enabled these companies to be in a good state with the increasing technological and organizational complexities that have currently come into play in the today’s market. Strategic alliance has contributed in changing the dynamic and structure of the today’s competition in the whole world. In general, strategic alliance is whereby two companies come together to obtain a common interest which might not be easy to obtain individually (Botten, 298). MACGIAVELLIS RELATIONSHIP TO THE COCA-COLA COMPANY The Coca-Cola Company has ventured into the alliance strategy to outdo his rivals in the market. However, according to Machiavelli, a prince who is self-sufficient is better of as he is always ready to meet any enemy at the battlefield. This is because he is always armed with his army. The argument is a contradiction with the approach the Coca-Cola Company is taking. This approach of forming alliances is helping the company to prosper in the today’s market. Even though alliances are perfectly working for the Coca-Cola Company, Machiavelli strongly opposes the use of mercenaries which in this essay refers to the use of other companies. Machiavelli opposition is as a result of the belief that they are always not helpful to the ruler as they are cowardly, undisciplined and without any loyalty. The mercenaries are always money driven. Machiavelli relates the city-state of Italian as being weak due to their dependence on the mercenary army. “...if one holds his state on the basis of mercenary arms, he will never be firm or secure; because they are disunited, ambitious, without discipline, unfaithful; gallant among friends, vile among enemies; no fear of God, no faith with men; and one defers ruin insofar as one defers the attack; and in peace you are despoiled by them, in war by the,”(Emachiavell, 5). Machiavelli continues to support this statement using an example of Cesare Borgia, who brought peace and order to the land he conquered. Cesare Borgia was supported in ascending to power, which mean him coming to power was not by him self but by the help of others. The first troop he was in charge of was the French troop in which he used it to successfully take over the Forli and the Imola. Feeling that he was not safe with the French troop, he opted for the mercenaries which to his opinion thought were of best option as it posed less danger to him. Cesare Borgia finally eliminates the mercenaries and opted for his own army on finding that they were unfaithful, dangerous, and doubtful. Cesare Borgia using an army of his own, managed to rule his own kingdom with no worries of being removed from the power by others. Even though his ascending into power was through the influence of others, he managed to change everything as being evidenced above. He came into power with the French troop, obtains the hand of the mercenaries, and finally comes up with an army of his own to rule the kingdom. The sophisticated nature of customers has forced most of the companies to form alliances which are major; by their customers, suppliers and even their rivals. The competition experienced today is that of between one groups of company to another group of companies. For example in 2001, the Coca-Cola Company made a deal of becoming an alliance with Proctor and Gamble. The deal was $4.2 billion U.S. dollars and was majorly for the Proctor and Gamble to use the Coca-Cola large distribution network to distribute its products (DePamphilis, 577). The Coca-Cola Company majorly forms alliances with some of its largest customers to enable it to sell more products and to achieve heightened brand presence as in the situation with the Live Nation. Both the companies are determined to promote their products for consumption. The strategy of the Coca-Cola company determination to acquire other companies brand and then partner with the bottlers company to package and distribute the brand is enhancing its effectiveness in operation. HOW THE RELATIONSHIP HELP COMPANY The strategy of Coca-Cola Company acquiring other companies or forming alliances with another company is working well. Coca-Cola Company sometimes has little equity interest in the bottlers company and even under some uncommon situation buys the whole bottlers operation. The equity interest in the bottlers is a symbol of encouragement to enable the Coca-Cola Company’s partners to succeed. The company gives his partners favorable term and has confident in his partners. The minority equity investment witnesses this confidence in his partners. The good intention of Coca-Cola wanting his partners to prosper is also evidenced by the presence of the Coca-Cola Enterprise. In addition, the Coca-Cola Hellenic Bottling who are the company’s oldest partners and are still up to date and thriving into business (Bnas, 969). The Coca-Cola Company’s way of helping his partners to prosper is seen as being with good quality of a leader. Furthermore, it has been offering favorable deals to its partners making its partners like it. This has contributed to the success the company is now enjoying. On the other hand, the good deeds by the Coca-Cola Company contradicts Machiavelli’s believe, that it is better to possess the evil qualities to rise to power. Even though the Coca-Cola Company enjoys the love from the partners as evidence by the likes of the old companies like the Coca-Cola Enterprise and the Coca-Cola Hellenic Bottling-There is the need to acquire more market share to shade off competition. This love is not supported by Machiavelli as he supports that it is better to be feared. He continues that if the prince shows more mercy to his subject, the people will come up with very bad behavior like killing, stealing and rape which will really affect the society as a whole. It is now better for the prince to poses evil quality to discourage people with such behavior to prosper in the kingdom. He further supports this by example from Cesare Borgia, in which he was mainly considered as cruel. However his cruel nature contributed to fixing Romagna, brought peace top it, united it, and made it more reliable. The people happiness was restored in the area and development was evidenced. SIMILARITY BETWEEN THE COCA-COLA COMPANY AND MACHIAVELLI The Coca-Cola Company having confident in his partners is an indication of trustworthiness. The concept of trustworthiness is supported by Machiavelli as one of the qualities a prince should possess. He states, “How laudable it is for a prince to keep faith, and to live with integrity and not guile, everyone perceives: nonetheless, in our times one sees by experience that the princes who have done great things are the ones who have taken little account of faith, and who have known to turn mens brains with guile: and in the end have surpassed those who grounded themselves on loyalty.” (Emachiavell 14) The Coca-Cola Company for a long time has protected its secret soda recipes. Despite this, the company has been treating its partners well. The treatment is through sharing of the knowledge with other partners and offering of fair deals. For example, the researchers in the Coca-Cola Company invented a bottle that is economic friendly. It is to be manufactured using less plastic, hence less crude oil. The invented knowledge was shared to all the Coca-Cola Company partners and requested the new design to be implemented. The invention is a clear evidence that Coca-Cola Company is helping his partners to be environmental friendly and to become more efficient. This act makes the company to be loved by the partners. Machiavelli also supports that the prince has to do several things for him not to be hated. The Coca-Cola Company is known of acquiring other companies. In 1960, it acquired the Minute Maid, and in 1993, it acquired the Thumps Up which is the Indian Cola brand. In 1993, Barq’s was acquired and in 2001, it acquired the Odwalla brand for fruit juice. Fuze Beverage was acquired in 2007 (Kumar, p.220). This acquisition of these companies enables the company to expand in its market and to outdo the rivals as some of the companies were the companies’ rivals. Machiavelli also talk about acquisition of land and territory, he continues to give various ways in which these land can be acquired which includes; by use of your own arms and virtue, others arms, inequity and fortune. We can refer to the organization own army as being the wealth of the company. Wealth is the major weapon the company can use to defend its self or compete with other rivals and also acquire others. The more the wealthy the company, the tougher is the competition from other firms. Most companies majorly rely on the Coca-Cola Company for their survival. Its prosperity in the market is majorly linked to other companies which is always not a good idea. Furthermore the problems that the Coca-Cola Company will be facing will directly affect the bottlers companies. If the Coca-Cola Company collapses the same fate is shared by the bottlers companies. Machiavelli advices that it is better for a prince to ascend into power using his own army as this will enable him hold onto it for a longer time as compared to those princes who have ascended to power through the help of other peoples efforts. This is because others will determine when to remove him from the seat. Referring to Machiavelli advice the bottler companies are in a better position to stand by their own as in to rely on Coca-Cola Company. This will enable them to foresee their future strategies and encourage critical thinking in the company. As per now there future existence is determined by the Coca-Cola Company and they are the ones who determine when the bottler companies are to exist or seize from existing. Conclusion Looking at the Coca-Cola Company, it has prospered since its establishment and now it is one of the known big companies in the world. The main strength of its prosperity is the partnership it has formed and the acquisition of other companies. The acquisition has contributed to the expansion of its market and its distribution. Most of Machiavelli writing is parallel with the factors that have contributed to the company’s prosperity. Machiavelli believes that the use of mercenaries to ascend to power is always not a good idea as knowing where exactly there loyal lies are always a problem. Machiavelli believes that the mercenaries are always thinking of money and when provided with money they can even kill their masters. In reference to the Coca-Cola Company, the mercenaries are the Bottlers Company. The only work of the Coca-Cola Company is to produce the Coke syrup. The remaining work of packaging and distribution is left for the bottlers. The bottlers companies who are like the mercenaries of the Coca-Cola Company have helped the company to enjoy the benefits that they are enjoying today. The benefits have been accrued the bottlers always cover most of the difficult work which are mainly the packaging and distribution. Another area where the difference is observed between Machiavelli and the prosperity of the Coca-Cola Company is in the relation between the prince and the people. Machiavelli says that the prince should always be feared to enable him ascend or hold into power. On the other hand, the reason the Coca-Cola Company is in the rise is because of the good relation with the partners. The company has provided the partners with a fair deal. It has also been sharing its major findings with the partners company hence enabling them to improve in their efficiency and their friendliness to the surrounding environment. As a result, there has been development in the confident between the two partners hence contributing to their prosperity. The similarity in the operation of the Coca-Cola Company and the writing of Machiavelli is seen in the acquisition. As the prince acquires land and wealth, he becomes more powerful. The more the people in the kingdom, the more the tax to be collected and hence the richer the prince becomes. The same concept applies to Coca-Cola Company. When a company acquires other company, it is expanding the region in which it operates and the market also expands hence the profit made also increases. This in turn makes the company wealthier. Due to this acquisition of other company, the Coca-Cola Company has become among the best companies in the world. Work Cited Bnas Eastern Europe Reporter. Washington, D.C: Bureau of National Affairs, 1991. Print. Botten, Neil. Cima Strategic Level: Paper E3. Oxford: Elsevier, 2008. Print. DePamphilis, Donald M. Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions. London: Academic, 2010. Internet resource. Emachiavell. Machiavellis The Prince a summary with quotations.web< http://www.emachiavelli.com/The%20Prince%20and%20Machiavelli%20with%20Quotes.htm >accessed November 27th 2014 Hoskisson, Robert E, and Robert E. Hoskisson. Competing for Advantage. Mason, OH: Thomson/South-Western, 2008. Print. Kumar, B R. Mega Mergers and Acquisitions: Case Studies from Key Industries. Basingstoke: Palgrave Macmillan, 2012. Internet resource. Read More