Micromanaging Coca-Cola Corporation - Essay Example

? XYZ No. 12345 MICROMANAGING Department of Management Sciences XYZ 29 August, Table of Contents Contents Page No Introduction 03 Mission and Vision Statements 04 SWOT Analysis 05 SWOT Analysis Coca Cola 05 Strengths 05 Weaknesses 06 Opportunities 06 Threats 06 Goals and Performance of Coca Cola 07 Marketing Strategies 07 Production Strategy 07 Distribution Strategy 08 Pricing Strategy 08 Is Marketing Strategy of Coca Cola Successful? 08 Management Problem in Coca Cola 09 Literature Review 10 Recommended Measures to Change Management 13 Conclusion 14 Works Cited 15 Introduction The international Coca-Cola Corporation was created in Georgia in 1886 (Coca Cola, 2007, 08, 09, 10). The company headquarters is still there. The company is renowned for its connections towards metropolis and specifically its humanitarian background. In 1886, pharmacologist John Pemberton designed the soft drink Coca-Cola simply by mixing soda liquid, lime, cinnamon, coca leaves, and Brazilian plant weeds. The beverage was initially offered in Atlanta in Jacob’s Pharmacy just for five mere cents a glass to provide a soda feature beverage. The specific “Coca-Cola” brand was initially proposed simply by Pemberton’s companion and bookkeeper, Frank M. Robinson. Robinson assumed that the name with a pair of C’s would certainly seem attractive in marketing and advertising, and he composed the now-famous Coca-Cola emblem in by his handwriting (American Jewish Historical Society, 2007). Through 1892, Chandler’s expertise regarding marketing had improved product sales of Coca Cola virtually tenfold. He soon enough collaborated along with brother John S. Chandler, John Pemberton’s ex- companion Frank Robinson, and a couple of some other affiliates to create a Georgia company referred to as The Coca-Cola Corporation. Ernest Woodruff paid for the Coca-Cola Enterprise in 1919 just for $25 million. He flipped the organization to his son Robert Woodruff in 1923 Coca-Cola makes, and promotes nonalcoholic products around the world. It primarily provides glistening but still refreshments. The company’s dazzling drinks consist of nonalcoholic drinking products along with carbonation, for example vigor beverages, and carbonated water and distinctive flavored water. Its products include nonalcoholic drinks with no carbonation, which include noncarbonated water, flavorful water and improved water, noncarbonated vigor products, and juice refreshments, ready made teas and coffees, as well as drinks of sports activities. The Company also provides flavoring compounds, sweeteners, powders with regard to filtered liquid items, refreshment elements, as well as syrups. It sells its nonalcoholic drinks principally within Coca-Cola, Fanta, Sprite, Diet Coke, and some other simple brand names (http://www.coca-cola.com). The organization advertises it’s carried out refreshment items mainly to marketers; as well as drink focuses as well as syrups to bottling as well as canning staff, vendors, wholesalers, as well as suppliers. At present Coca-Cola areas of operations extended a long way outside of Georgia and also the United States. The firm has grown as amongst the world’s virtually all incomparable companies. The Coca-Cola brand name is probably one of the five best icons on the globe. Presently, Cola contains approximately 400 products of different brands in more than 200 countries (http://www.thecoca-colacompany.com). In 2010, the company’s total net operating revenue equaled $35. 119 billion while its total assets were $72.721billion (http://www.yahoo.finance.com). Almost 139, 600 employees are working at global level in its different areas of operations (10-K, 2010). Mission and Vision Statements The mission of Coca Cola is perfectly for the refreshment of the community is not merely for our bodies but also for one's heart together with mood together with style additionally. Furthermore, it desires to really encourage confidence together with the help belonging to the behavior together with manufacturers, and also to produce the significance which may come up with distinction in appealing almost everyone. The vision of the company may be for the individuals to achieve the terrific succeed also to issue by being some sort of accountable person (coca cola, 2008) SWOT Analysis SWOT represents the inner Strengths and Weaknesses of any organization and also the external Opportunities and Threats in front of that company. SWOT evaluation is really a widespread method by which supervisors produce a fast summary of the company’s proper scenario (Hill & Westbrook, 1997). The actual method is dependant on the actual presumption that the efficient technique derives from the evident “fit” in between the firm’s inner assets (strengths as well as weaknesses) and its exterior scenario (opportunities and threats). A great match efficiently utilizes the firm’s talents and possibilities to reduce its weak points and risks. Precisely used, this particular presumption offers effective implications to style an effective technique. (a) Strengths: features belonging to the business or company providing it an edge against competitors in the market. (b) Weaknesses: attributes which put a company on a negative position in accordance with some others. (c) Opportunities: external likelihood to generate significantly greater profit margins or revenue in the natural world. (d) Threats: external factors in the particular surroundings that might bring about problems to the company. SWOT Analysis Coca Cola Strengths (a) Globally consistent popularity, virtually an unparalleled strength (b) Worldwide most renowned product in beverage industry (c) Worldwide most well-known and easily recognized trademark (d) Strong financial returns, more than all other beverage companies (e) Global network (f) Customers’ loyalty (g) Joint venture with Nestle has increased its worth worldwide (h) More than 70% revenue is generated outside the USA Weaknesses (a) Loss of customers as Coca Cola is a word of mouth (b) Lack of recognition of other 400 brands (c) Low advertising campaign of brands other than Coke and Sprite (d) Unhealthy effects of beverages on body Opportunities (a) Pursue 400 others brands in the market (b) Strong financial base allows launching and advertising less popular products (c) Opportunity to catch 100% recognition on the globe (d) Buy out competition Threats (a) Increasing trend about health-consciousness amongst customers (b) Legal issues and proceedings (c) Government health laws in some countries (d) Great competition with Pepsi (Coca Cola Annual Reports, 2008, 2009, & 2010) Goals and Performance of Coca Cola The Coca Cola Organization features a mission which can be explained as a means of catching the goal of it. Therefore, the particular mission performs its role as a strategy to protect the particular weighs about of the particular organization in terms of its activities as properly as options. This particular objective is expressed as ‘to refresh the world in body, thought process as properly as spirit'. Furthermore, Coca Cola is certainly satisfied in uplifting the events of anticipation by way of its products and services. By employing the objective statement, it has produced a value and therefore designed a positive change at any time when it is interested. The particular recognition of Coca Cola comes with results through the proclamation of its vision as it provides to be committed to the particular well-being belonging to the modern culture as a result of relaxing consumers through its properly constructed beverages (Pearce & Robinson, 1997). Marketing Strategies Coca Cola has used number of strategies over the years to maximize its growth and to maintain its leading standing in beverage industry of the world (Bokaie, 2007). Some of its leading strategies are highlighted below. Production Strategy. It is an approach utilized by Coca Cola to provide both of frosty and cozy beverages which might be of similar value to buyers at anytime. Moreover, these products are associated with top quality so as to take on some others in the particular international industry. It is the production technique of the organization to generate a wide variety of items to ensure that everybody of United States, other countries, as well as of any age group could possibly ingest them all. Furthermore, beverages are manufactured in numerous styles to enable the customers to end up being paid for by every individual in the world irrespective of whether affluent or poor (Paley, 2006). Although, Coca Cola distributes its items to everyone of its buyers in the entire world, yet, there are a few beverages which concentrate on specific citizenry in the particular community. For example, certainly the eating products objectively focus on senior citizens who are associated with age group of 35 to 39 years. Similarly, beverages related to sports activities, focus on the individuals who undergo lots of exercise and training while the Winnie and pooh sipper generally spots the youngsters the ages associated with 5 to 12 years (Zurkuhlen & Meeker, 1987). Distribution Strategy. The distribution strategies utilized by Coca Cola have given it plenty of revenue and leading standings in the global economy. Primarily, the Coca Cola Organization operates through its sub-offices in around 320 countries in the entire world which assist the headquarters in disbursing the particular produced items. Furthermore, in all these countries there are processing plants which smoothly execute the job of product circulation (Zurkuhlen & Meeker, 1987). Pricing Strategy. The Coca Cola Enterprise pricing strategy tends to be the most effective in the beverage market. The reason is sure i.e. its competitiveness structured pricing strategy has enabled it to stiffly contend with some other refreshment providing corporations. Because the manufacturers products are generally consist of distinctive dimensions, the price strategies are based on the quantity (Pride & Ferrell, 2008). Is Marketing Strategy of Coca Cola Successful? As a result of product strategy of Coca Cola, recently a great progress has been observed in the gross sales and net revenue. The marketing strategies of the company have produced an incredibly favorable worth with regard to its earnings. With this connection, Coca Cola delivers effective as well as appealing items which have been adored by countless buyers around the world. As mentioned earlier, the organization continues to be in a position to get a positive worldwide company atmosphere. Therefore, many experts have considered that it is the very first drink providing and supplying organization across the world in exemption to Middle East where it has been rated second. Due to this particular, the organization is earning a great deal of income through the sales associated with drinks. Although there can be occasions of contest with others in the market, Coca Cola is preferred by the customers throughout the world (Pride & Ferrell, 2008). Management Problem in Coca Cola The organization successfully survived during the World War II; rather it took the war being an income opportunity rather than the liability. It turned out to go beyond the Asian Financial Crisis and perhaps accumulated much better accessibility around the market segments which it had not been in a position to thoroughly enter. Coca Cola demonstrated the successful change management. It is the course of action through which it deals with the change in the aspect of individuals. The organizational change management and individual change management are the two basic change management theories. Apart form these concepts; there are four approaches of change management which are the normative-reductive, empirical-rational, environmental-adaptive, and power-coercive (Edersheim & Drucker, 2007). Despite of the fact that Coca Cola is really a robust organization, nonetheless, around critical evaluation, I have observed some lapses in terms of change management that during recent global recession, Coca Cola could not show its flexibility. The company is required to improve its change management in response to finance, employees, products, and customers. Literature Review Before dealing with change management, the term change ought to be first explained. According to Zyman “change is the factor around that which was earlier than” (Zyman, 2007). In corporate, it implies carrying out the responsibilities at a latest structure, pursuing innovative guidelines, attaining brand new systems, latest administration techniques, purchases along with combining crucial functions around organizations. Nickols (2006) provides four fundamental definitions of change administration, as outlined by him; this is a process of handling the changes, a discipline of skilled exercise, some sort of understanding along with facts as well as a command system. Nickols described handling changes as “the devising of transformation around some sort of planned along with systematic fashion”. He explained that the principal aim of handling change is always to effectively putting the new approaches into action. Additionally the modifications being dealt with are dependent upon the management in the corporation. Coca Cola Business is obviously probably the most favorite organizations on the planet. In addition to the indisputable fact that it is additionally among the earliest companies which was in a position to endure during World War II along with other modifications in the financial issues in the past. The Coca-Cola Corporation surely could withstand the hindrances which took place; the organization applied change administration as effectively as possible to hold up against the challenges. As said before, alterations in administration is a result of three different factors that are the external atmosphere, internal alterations and the hands-on response to probable risks and complications (Bokaie, 2007). In terms of external environment during the previous generations, the Coca-Cola Company has experienced numerous adjustments. In this context, it has modified the administration of the business many times. The most effective example is the era of World War II. The corporation retained the rank and could go into fresh market segments simultaneously. Rather than lying-low as a result of battle, the business evolved into much more aggressive by means of delivering free of charge beverages for the US defense forces while in the World Battle II. By this, the organization struck two birds with a single stone. First, because of the carbonated refreshments dispatched by Coca Cola, it grew to become a loyal sign. Secondly, the organization acquired benefit of the circumstance and founded the item in newly-occupied nations by the coalition forces. Due to this, Coca Cola organized its roots in several regions globally, improving the path to its post-war business expansion. One other feature with the external atmosphere is a change of flavor and anticipations within the customers. While in the mid-1980s when the US residents preferred the fairly sweet flavor competitor item, the organization designed its comparable version however it turned out to be a financial breakdown. Despite of taking this breakdown, Coca Cola transformed its administration methodology and came back with the previous formula, and declared it as Coca Cola Classic. In accordance with the increase of overweight in the United States and buyers evolved into cognizant about overall health, it introduced one other variant of Coke to be able to deal with the requirements of such sort of customers, these kinds of solutions consist of Diet Coke and Coca Cola Zero. Moreover, based on Bool (2007), corporations like Coca Cola are generally imperative to alter the tendencies which have a massive affect on their enterprises. One of them is traits stands out as the physical fitness. Many people shelling out extra in their overall health, and in order to maintain the pattern, Coca-Cola announced their innovative item which is a fat burning capacity soft drink, the Enviga. Furthermore, Coca Cola is working together with the Swiss business Nestle. Internal Adjustments as stated previously, Asia encountered the financial meltdown in 1997. Reported by Coca Cola (2007) as the economic crisis swept the Asian community, Coca Cola responded to by seizing innovative growing possibilities. Coca-Cola presented focus on purchase options as it purchased bottling business in South Korea which provided much more accessibility in retailers in South Korea, China, Japan and Malaysia. Coca-Cola ignored the country-defined industry perception along with devotion to local tactical perspective and purchased fresh types of tea and coffee. Additionally, as outlined by Coca-Cola (2007) the business initiated a substantial change through which an organizational framework originated in order to interact with the requirements of customers via integrating the North American bottle and fruit juices in one product. By way of this change, it elevated how drink alternatives are manufactured, also it unifies the process of the supply chain, procurement and syndication whereby it accelerated the productivity of products in order to customers. Coca Cola has prominent varieties of the advertising of its products. In an effort to focus on distinct kinds of customers, the organization transformed the product packaging of Coke. Coca Cola also designed new items like Gatorade but it also expanded internationally that is made up of the Middle East, African group, the European group, and Latin America group (Johnston, R E & Bate, 2003). In terms of risk management, organizations either small or massive, already are behaving upfront so as to overcome the probable threats which could crop up down the road. One of the most significant facets of launching the innovative products is to take risks without a clear foundation (Harvey and Brown, 2006; Todnem & Rune, 2005). In the aftermath of 9/11, the insurance policies have changed, large corporations reassess the likely pitfalls plus how usually are they likely to implement the insurance. In Coca Cola following the costs increased, the organization thought about the low cost insurance by means of captives. During the year 2000, Coca Cola observed substantial changes in its senior level staff and organizational framework with regards to dealing with the options, hazards and difficulties since the organization comes into the modern stage of management (Pendergrast, 2000). Recommended Measures to Change Management In Change Management, there are two theories in change management, the individual change management, and the organizational change management. According to (Aladwani, 2001) individual change management is the process in which the company provides tools and training to its employees to be able to handle their personal transition through change. The ADKAR Model is a model that can be used as an individual change management (Hiatt, 2005). I recommend the use of ADKAR model for Coca Cola which would deal the problem of change management in four aspects. It includes management of personal transition; focus on conversation on the conflicting issues, composite feedback from the employees about failure of change management, and corrective preventive measures during the process of change. The ADKAR model will ensure five stages an individual undergoes during the process of change: (a) Coca Cola workers, shareholders and perhaps customers are generally up to date in the alterations, specifically in the segment of administration, as in the matter of recruiting Shaun B. Higgins as being the fresh chief executive of the Coca Cola Business in 2005. (b) All personnel in Coca Cola particularly those involved in the administration roles should engage in the alterations which the business have to undertake, such as in the event of modifying the product packaging of products. (c) The senior managers of company possess sufficient understanding concerning the alterations that has to come about around the business. For example, regarding Daft where he had awareness on alterations that need to be carried out to resist the Asian Economic crisis in 1997. (d) Coca Cola has a very long record of alterations, a few are generally breakdowns, however generally it is valuable, therefore, and the organization should work with the capacity to put the changes into action which the Coca Cola have developed. (e) Coca Cola is surely a recognized firm and contains the lives of US citizens. The productive implementations in the alterations of business are generally a result of the stringent encouragement of alterations in the business. Conclusion Change administration is really a course of action wherein almost all organizations go through. It is an essential process because it facilitates the corporation to produce productive conclusions that is to be beneficial and useful to this company. Aside from that, companies which are ready to accept the changes are usually more productive as compared in order to organizations which refrain from it. In a global industry, brand new systems plus course of actions are generally coming through swiftly. To keep up with this particular development, a business needs to be ready to adjust itself with administration alterations. The global, along with, the regional industry incorporates an extremely tough contest, as a result to be on the top, change administration should be employed by organizations. Coca-Cola is among the finest examples of organizations which applied change administration effectively and now have produced good success. The data is the prominence associated with Coca-Cola with the soft drink business not merely in the USA but also around the globe. Works Cited Adel Aladwani, (2001). Change management strategies for successful ERP implementation, MCB UP Ltd "Beyond Seltzer Water: The Kashering of Coca-Cola". American Jewish Historical Society. http://www.ajhs.org/scholarship/chapters/chapter.cfm?documentID=270. Retrieved 2007-02-26. Bokaie, J 2007, ‘Coca-Cola and its three-cola strategies,’ Marketing Magazine, retrieved on 4 March 2009, from http://www.marketingmagazine.co.uk/news/765194/Media. "Brand Fact Sheet". Coca-Cola official website. 2008-12-01. http://www.virtualvender.coca-cola.com/ft/index.jsp Coca Cola Annual Report, 2007 Coca Cola Annual Report, 2008 Coca Cola Annual Report, 2009 Coca Cola Annual Report, 2010 Daft, Douglas N. (2000). 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