Coca Cola as a Widely Known Brand Across All Corners of the World - Coursework Example

Executive summary Coca cola is a widely known brand across all corners of the world because of its wide reach, made possible by its effective management which has continued, over the years, to steer it in line with its original goals and aspirations. Started in Atlanta, Georgia, in 1886, it is now the leading global maker, marketer and supplier of non-alcoholic beverages and other speciality drinks. It also sells syrups and other liquid mixtures to other companies who blend it with other components to produce their own brands. In this year, John Pemberton made a mixture of caramel-coloured drink at his backyard, he moved on the streets of Atlanta selling it from his jug at five cents. After a few days into his business, he discovered that the drink tasted better when mixed with carbonated water which gave it a refreshing taste and also served as a preservative. The company had an initial steady growth in sales, but market penetration and satisfaction was difficult to attain since it was still applying rudimentary channels to package its product well. Major jump in sales was eventually realized when the company introduced its trademark bottle which has carried its brand image since then; this made packaging and distribution easy resulting to an efficient supply chain. The company has a franchise business model where it produces the drinks and sells to bottlers commanding a given region. These bottlers are involved in promotional activities in collaboration with the parent company, to promote this brand. Despite tough regulatory frameworks available in most countries, the company is the most globally present. It produces over 500 beverage brands which are consumed in over 200 countries. In 2009, in continuing with its global acquisition of strong beverage companies, the company bid for Huiyuan Juice Group but the Chinese government declined this offer because of business protectionism reasons. It feared that Coca cola would introduce a monopolistic culture in the Chinese market because of its size, which negatively affects the consumers (Hays, p. 83). Introduction The company has a huge responsibility of maintaining its prowess in innovation ever since it produced its original coca cola recipe. With the rapidly changing business structures and cultures, the company has undertaken regular analysis of its internal and external environment to be proactive in addressing these new ideas and challenges in order to remain competitive. This report evaluates Coca cola Company’s structure, operational systems, people and culture. It goes ahead to assess how these factors influence execution of the company overall business strategy as prepared by the directors. In order to achieve this, the report will critically examine its operational and human resource capabilities. It will conclude by assessing if the company mission, strategic control mechanisms and implementing organs adds to attainment of the overall strategy. Thesis statement Are Coca cola’s internal operational systems, mission, company culture and structure contributing to realization of its long term strategic objectives? Coca cola strategy Being the producer of world’s most recognized beverage brands; Coca Cola’s strategy is aimed at positioning it at a better place to anticipate changing market trends and tastes. They then act to address these consumer issues to keep them satisfied. It has reinforced the brand’s image as an energizing, relaxing and enjoyable drink through the various marketing campaigns it conducts in the print, electronic, mass and the social media. The company also makes sure its supply chain is efficient to avoid shortages in one region and surpluses in another; this is done by involving the bottlers and consumers in business development (Boyson, Harrington & Corsi, p. 114) Strategic Analysis with Structure, Systems, People and Culture Structure The company operates on a centralized hierarchy system where key decisions are made at the top; this is however done after input, in terms of feedback, is received from consumers within its distribution zones. The company CEO is at the top of decision making organ, and has16 members in the Board of Directors, with a chairperson, who are involved in preparation of strategic plans for the company. It has Chief Financial and Chief Technical Officers who are technocrats tasked with ensuring operational efficiencies in maintaining innovation and keeping the company at a sound financial base respectively. The company has several departments tasked with specific responsibilities in the regions they represent: refreshments USA focuses on the American beverage market, Sales & Marketing, Business and Technology Services, Bottling and supply chain, Latin America Group, Pacific Group, Eurasia & Africa Group, European Union Group, Human Resources, Public Affairs and Communication and North America. The heads of these departments give constant communication to the CEO on matters affecting their dockets (Isdell & Beasley, p. 92) Systems The company has elaborate financial control mechanisms which ensure timely delivery of sales reports to the head office. It also has an Audit Committee Charter (ADC) which is involved in setting of budgets, making business plans, evaluating human resource needs and it also measures business performance. People It employs its workers from diverse backgrounds and people from different segments of the financial sector to bring in the much needed experience needed to steer the company in the right and sustainable development path. Working at Coca Cola demands a team player who can effectively collaborate with other employees in performing business tasks. The skills, knowledge, experience, attitudes towards job and company and remuneration offered at Coca Cola Company are of the highest level. Culture The company appreciates diversity among its employees as the key to its continued growth. It sources employees from different academic and cultural background to bring in their varied ideas which help in decision making. This variety put personalities with varied past experiences together and they represent the different regions this company operates in. These employees appreciate their shared values and also recognize their differences as the source of their strength in attaining overall objectives (Blanding, p. 127). It also maintains an internal communication flow that enables quick response to organizational queries; this is provided by the seamless internal email which enables real time exchanges across its branches. It forms teams to handle specified tasks for instance, dispute resolution, product launch and business development teams which handle short and long term issues affecting the company. It provides an ideal personnel empowerment environment, always training its staff on new and efficient methods of running their dockets. It defines key modes of behavior and symbols to ensure personal issues do not affect the working environment. It also has a dispute resolution system that aim to improve the importance of the organization and the overall lives of its people and customers. Thus, the overall aim of the company is to improve the lives of the people who make this company the leader in the world (Coca Cola, p. 3). Company mission Coca Cola Company has a broad development plan that takes which its implementation phase ends in the year 2020. This strategic paper is designed to maintain its proactive nature in meeting changing consumer tastes and demands. The roadmap also puts its bottlers as an important segment of its culture since they are the ones that ensure quality is maintained right from the top all the way down for consumer’s benefit. It missions are:” to refresh the world”, “to inspire moments of optimism and happiness” and “to create value and make a difference”. All these brighten consumer’s hearts since they know all their thirst needs are met by the drink. Creating value in the supply chain ensures all the levels of production; from the manufacturer, wholesalers, retailers and the shareholder’s interests are protected. They have to get value for investment to keep them in the business thus keeping the tempo on overall company growth. Conclusion In order to remain competitive in this market with upcoming new entrants, the corporate strategy of the Coca Cola Company focuses on innovation and marketing in order to improve its level of contribution in the betterment of the society. Innovation increases and widens the products offered to the market. For instance, with increasing bottled water business, the company released its Dasani brand to counter other water bottling companies. This worked in its favor since the product has penetrated across global markets. It also engages in aggressive marketing to make its products known to the market; it has a huge budget to create and run these adverts. Implementation of this strategy is made possible by all the organizational components in terms of; the shape of structure, system, people and its culture. These operate in a unified manner and this has enabled positive growth patterns experienced over the years since its inception. Works cited Blanding, Michael. The Coke machine: the dirty truth behind the world's favorite soft drink. New York: Avery, 2010. Print. Boyson, Sandor, Lisa H. Harrington, and Thomas M. Corsi. In real time: managing the new supply chain. Westport, Conn.: Praeger Publishers, 2004. Print. Workplace Culture of Coca Cola Company. Coca Cola Company, 2012. Web 26 March 2012.Retrieved from http://www.thecocacolacompany.com/citizenship/workplace_culture.html Hays, Constance L.. The real thing: truth and power at the Coca-Cola Company. New York: Random House, 2004. Print. Isdell, Edward Neville, and David Beasley. Inside Coca-Cola: a CEO's life story of building the world's most popular brand. New York: St. Martin's Press, 2011. Print. Read More