Managing Business Process- Coca Cola - Essay Example

Coca Cola Company Table of Contents Introduction. 3 2. Organization Profile 3 3. Research method 4 4.0. Discussion of findings. 5 4.1 Performance Assessment 5 4.2 Capacity Strategy. 6 4.3 Recommendations. 8 Conclusion. 9 References 10 Appendix. 12 A Performance appendix 12 B Current Capacity Strategy Appendix 13 C Recommended Capacity Strategy. 14 1. Introduction. This is an essay about one of the biggest international companies in the world: Coca Cola Company. The company is believed to have been started by John Pemberton who was a pharmacist (World of Coca-Cola, 2015). It was started in May 1886. This essay looks at the company as it is now. That is in term of its operations. The main issues that will be discussed in this essay is an assessment of its strategy, the strategy of its capacity and recommendation. 2. Organization Profile The company has branches in more than 190 countries and sells over 500 brands and beverage products whose count exceeds 3,000. Included in the product list are still and sparkling beverages such as juices, water and juice drinks, energy drinks, sports drinks, tea and coffee. The company produces four of the most common non-alcoholic drinks in the world. It includes Diet, Coke, Sprite and Coca-Cola. The system. Generally, the company global but operates in small scale in each community where the products of the company are sold. The organization is able to have a global impact and reach of its consumers because of the efficient system. The system mainly consists of the bottling partners that total to nearly 300 and the Coca-Cola Company. The Company is responsible for the synthesizing and selling of concentrates, bases and syrups to the bottling partners. It also owns the Coca-Cola brands and is in charge of the marketing initiative. The bottling partners to the company are responsible for packaging, manufacturing, distribution and merchandising of the products to vending partners and customers. The company does not own or control most of the bottling facilities that it works in close relationship with. The bottling partners tend to have a close working relationship with the consumers. The main consumers are stores, street vendors, movie theatres, restaurants and amusement parks. Through the effective system, the company is able to achieve 1.7 billion sales in a day. Equity stake in bottling facilities. FEMSA is the largest bottler in the world, the percentage of the company’s Unite Case Volume is 10%, and Coca-Cola Company has 32% ownership of the interest. Hellenic is the second biggest and has a Unit Case Volume of 8%, Coca-Cola has a percentage ownership of 23% of the interests made. Amatil is believed to be the third largest and has a Unit Case Volume of 2%. Coca-Cola has an ownership of 30% of the interest made (Coca-Cola, 2010, p. 27). 3. Research method This refers to the method that was used to acquire information that is much needed. In addition, it tells of the procedure that is used to collect information. Generally, there are three types of research. It includes Descriptive Research, Exploratory Research and Casual Research. The core role of a descriptive research is to give things a description. On the other hand, the main role of an exploratory research is to acquire preliminary findings that are to be used to suggest hypothesis and define the problem. Casual research is mainly used to measure hypothesis and effect relationships. As for this article, the main source of data are both primary and secondary. The secondary sources of data include magazines, textbooks, internet, newspapers and company reports. As for primary sources, they include personal interview and questionnaire. The main tools that were used to gather information in this research study it includes personal interviews and questionnaires. The number of respondents to the questionnaire are 150 and the number of respondents in the personal interview are 15. The main limitation to the research is that it relied heavily on people’s opinions. This means that some of the data is likely to be wrong. In addition, the research was done on a single community of a product that is internationally recognized. Hence, people from different people from different regions of the world will have different opinions. 4.0. Discussion of findings. 4.1 Performance Assessment Generally, when it comes to speed of accessing the products, one is bound to conclude that it is one of the most easily accessed product. This is because there are numerous distributors all over the world. Also, the system that is used by coca cola is so efficient and it has been highly attributed to its success. As from the respondents from the research who filled the questionnaires, 60% of them reported that there was a retailer in the block where they worked that was selling a coca cola product. This means that the accessing of coca cola product was so fast. The price of coca cola products compared with what is sold by other soft drink companies is low to average. This is especially so since the brand also sells fast in third world countries (Moorad, 2015). It is obvious that for a company to be able to claim a spot as the globes favourite soft drink, it has to ensure that it meets very high standards. This are meant to ensure that there is consistent product quality and safety from the production of concentrate to the delivery of the product to the final consumer. The company also has to take measurement of product and package quality attributes to ensure that the customer expectation and company requirements are met. The other main reason as to why all this is done is to meet the global regulatory requirements (Coca-Cola Company, 2014). Another important aspect that the coca cola company does its best to ensure that it is not ruin is the quality. This is done by closely monitoring materials, ingredients and regulating manufacturing, distribution and bottling. This helps to ensure that the consumer expectations are met. To ensure that the quality is up to standard, Coca-Cola Operating Requirements is the new body that allows the system to address changes in the business world. Also KORE as it is known ensure that all coca cola products are up to standards. KORE is made such that it assures the best standards in quality and safety of the products. Also, it ensures that it is charged with the duty of ensuring that the occupational health and safety of its workers are met. The locational standards of the coca cola companies and its partners are checked and clear specification are set by KORE. This specifications have to be followed and KORE ensures that ( Journey Staff, 2012). One of the qualities that is possessed by the coca cola partners is mix flexibility. This is the ability to handle a number of variants using resources that are easily set up and run. The bottlers then give it to distributors who are simply storage places from where retailers can easily access the soft drink for consumers (Coca-Cola Company, 2014). It is because of this nature of the coca cola system that has made it to be such a superior brand. 4.2 Capacity Strategy. Expansion in India. One of the main issues that have faced the coca cola company is the expansion in India. The company had been planning for this expansion to boost the brand in India. This was to be achieved through the construction of another bottling plant. The bottling facility was to be set up in Mehdiganj next to Varanasi in India. At fast the endeavour seemed to benefit both the locals and the company but this was to be stopped due to protesters and regulatory issues. The issues were because of the facility demanded a lot of water to be run. This included drilling into the underground water. After the plant started operating, the level of ground water had decreased by 26 feet. The plant in Mehdiganj was set up in 1999 and the expansion cost more than $25 million. The expansion would have most certainly boosted the local economy but the impact on the environment was considered too much for the locals in the area (Mosendz, 2014). Fluctuations in demand. There has been fluctuations in demand for coca cola brands. This is mainly because of the many variables that come in to play in the production and distribution of coca cola products. However, one of the main reasons for its fluctuations in for such a long time is the cost of water. This is because the bottling facilities for Coca Cola Company use up a lot of water. It is only normal that when the cost of water increases, the cost and availability of coca cola products will be higher and scarcer respectively. Capacity strategy. Coca Cola Company has realized there is an increased demand for its products. This has prompted the company to increase investment in its bottling companies. A notable case is when it increased its investment in India that cost the company US$5 billion over a span of eight years. The investment will range from the year 2012 to 2020. This will ensure that the company experiences continued responsible and sustainable growth in India. All this is with the aim of achieving the goal of doubled revenue of this decade. Coca cola has realized growth in the last 23 quarters most of which were double-digit improvement. The country’s top selling brands are sprite and Thumps Up (Eurasia & Africa, 2012). 4.3 Recommendations. One of the greatest concerns for soft drinks is the increased concerns for healthier options. It is especially so for carbonate drink manufacturers. Coca cola Company as a soft drink manufacturer mainly relies on the sale of carbonated drinks. As a means of copping with the current trend of moving to healthier options, coca cola should start to invest in natural non-carbonated drinks. This will ensure that the company continues to retain its position as the world most common drink manufacturing company. The company has already started to invest in health drinks. However, this is not a universal thing yet since most people only know of the coca cola products that are carbonate in nature. This is quite disappointing since there are already distributors in place what remains is the simple introduction of new brands that are not carbonated. There have been fluctuations in the availability of coca cola products. One of the most common reasons for these fluctuations is the demand for water. This is because the bottling companies that collaborate with Coca-Cola Company require to use a lot of water. It is because of this reason that whenever the price of water goes up, the unit price of a coca cola product goes up. The heavy demand of water by the bottling companies that collaborate with coca cola is what has made the company undergo great losses in India. This was after the locals of where the company was to be set up complained that the facility was exhausting there underground water (The Ecologist, 2014). This led to the stalling and loss due to a non-factional fully equipped facility. It is for this reason that there is need to introduce bottling facilities that will cut down on the consumption of water. This will make it easier for the locals wherever the bottler will be set up to accept the facility. This will also reduce the amount of money that is spent in running the bottling facility since not a lot of money will be spent on running the facility. Conclusion. Coca Cola Company is a company that has gained international recognition. This has been made possible by the secret formula that many have tried to recreate but failed. Apart from the secret formula, what has made the coca cola company to be so successful is the efficient system. This system has created employment opportunities and made the company to have a global reach in terms of consumer coverage. However, the current trend in which people are opting for healthier non-carbonated drinks means that the company should increase its rate of incorporating healthier options. References Journey Staff, 2012. Quality. [Online] Available at: http://www.coca-colacompany.com/stories/quality [Accessed 7 July 2015]. The Ecologist, 2014. India: Coca Cola bottling plant shut down. [Online] Available at: http://www.theecologist.org/News/news_round_up/2444501/india_coca_cola_bottling_plant_shut_down.html [Accessed 7 July 2015]. Coca-Cola Company, 2014. Product Safety & Quality. [Online] Available at: http://www.coca-colacompany.com/brands/product-safety-quality [Accessed 7 July 2015]. Coca-Cola Company, 2014. The Coca-Cola System. [Online] Available at: http://www.coca-colacompany.com/our-company/the-coca-cola-system [Accessed 7 July 2015]. Coca-Cola, 2010. Annual Review 2010, New York: s.n. Eurasia & Africa, 2012. Coca-Cola Targeting Additional $3 Billion Investment to Support Long-Term, Sustainable Growth in India. [Online] Available at: http://www.coca-colacompany.com/press-center/press-releases/coca-cola-targeting-additional-3-billion-investment-to-support-long-term-sustainable-growth-in-india [Accessed 7 July 2015]. Moorad, Z., 2015. THE COCA-COLA COMPANY: Tapping Africa’s fizz. [Online] Available at: http://www.financialmail.co.za/coverstory/2015/04/30/the-coca-cola-company-tapping-africas-fizz [Accessed 7 July 2015]. Mosendz, P., 2014. Coca-Cola Abandons Expansion Plans in India Because of Water. [Online] Available at: http://www.thewire.com/business/2014/08/coca-cola-abandons-india-production-expansion/379128/ [Accessed 7 July 2015]. World of Coca-Cola, 2015. Coca-Cola History. [Online] Available at: https://www.worldofcoca-cola.com/about-us/coca-cola-history/ [Accessed 7 July 2015]. Appendix. A Performance appendix Coca cola products are one of the most easily accessed beverage in the world. Due to the numerous distributors all over the world. B Current Capacity Strategy Appendix In 2014 the company improved water efficiency by 2%. The total improvement from 2010 is 10%. From 2004 to 2012 the efficiency had improved by 21.4%. Earlier, 2.7 litres of water was used to make a single litre of the product however currently 2.03 litres is used to make a single litre of the product. C Recommended Capacity Strategy. The company has made significant progress when it comes to matter conserving water. However, there is need for more progress. A suitable means of attaining this is by giving more focus on non-carbonated healthy drinks. After all, the non-carbonated drinks use up less water. Read More