Coca-Cola Company's Sustainability and the Green Supply Chain - Case Study Example

Sustainability and the Green Supply Chain Name Institution Instructor Course Date of Submission Introduction In many circumstances, businesses have been operated by use of models which directs efforts and resources of a company towards achievement of goals and targets within specified timeframes (Corporate 2012). Since globalization has picked and the momentum is anonymous, most organizations have been forced to adopt strategies to enhance their business supply chains. With regard to the past, there were allegations and demands by different nations that called for all companies operating within their environment and borders to adhere to some specific rules and regulations (Sopionated 2013). Since the call was global, meetings conducted by the United Nations resulted into several changes that could shape the business world. One of the objectives was for companies to adopt green technology as a mechanism to safeguard the environment against degradation and pollution that resulted from deposition of aerosols (Corporate 2012). Significantly, most of the packages and almost all transits were supposed to comply with the new regulations that were outlined by the United Nations. As a response, many international companies and firms decided to change their packaging and supply chain by adopting approaches that could reduce all sorts of pollution to the environment (Sopionated 2013). Considering that different countries have different environmental regulations and rules, there were variations in adopting the new demanded strategies, a scenario that led to many businesses realizing the need to comply in order to propel their business ambitions forward. Examples of such companies included Coca-Cola Company, World Bank, MSC, and the world economic forum. Coca-Cola is the world leading producer of beverages and its headquarters is located in New York. As per now, the company produces about 500 different brands of beverages (Sopionated 2013). Coca-Cola brand has won in many assessment events for being the best world brand. Among other brands, Coca-Cola sells other brands which include Sprite, Fanta, Coca-Cola zero, powerade, vitamin water, Georgia, Del Valle, and Minute maid. Apart from fresh drinks, the company also produces coffees that are ready to drink products. It is estimated that in a single day, Coca-Cola make records an average sale of 1.7 billion dollars and its services are available in more than 200 years. To have a long term enduring selling profile, most companies have strategically sidelined some amount to sustain the environment and restore livelihoods of hunger stricken people in many countries including the developing countries. Currently, Coca-Cola alone has a total of 700,000 employees working in different employees (Sopionated 2013). This figure is explosives of other stakeholders in the supply chain. This therefore confirms that this is the number of system employees. With the increasing rate of globalization, customers have been enabled to choose from many products that have been made available to them by many organizations. This means that many organizations and or firms are forced to compete strategically by rearranging their models and frameworks so that they factor in changes in customer preferences. Models and theories used by the Coca-Cola Company Any business operating within the frameworks of globalization, most companies have outlined ways through which they carry out their business activities. Business economics and management models are integrated towards sustaining the business to the next level of performance (Teece 2010 p. 174). Developments in globalization have consistently changed and several organizations have been forced to align their practices with the new demands and preferences of stakeholders. It is evident that many individuals living in different stations and geographical locations pose different preferences that must be satisfied by products from companies. Failure to do so mean that competitive firm will take the risk to satisfy needs of different individuals. Even within the same environment or ethnic group, there are variations in preferences especially among people and or different family classes. Models that long served organizations and firms can no longer handle situations and challenges of today, because of the very many integrated challenges that the world community is facing. Coca-Cola uses unique TQM models to maintain and plant seed of quality among its operations worldwide. Without models, innovators within the Coca-Cola Company will be unable to monitor trends and variations in international sales and losses (Teece 2010 p. 174). The worst has happened with online services used by Coca-Cola Company because most customers have perceptions that such services are and should be free. Coca-Cola company business uses models to monitor their sales and cash flows because they allow logical and data analysis for creating value to identifiable customers. However, the available models used by Coca-Cola have been used to create sustainability among the business community with the main aim of creating a sustainable advantage against their competitors. The disclosure regulations that are currently operational have enabled companies to broadcast their effective information so that business clients can monitor their operations. Disclosures are more effective and of good benefits to competitors who can easily monitor progress of a certain company by monitoring their sales and cashflows. Even though some companies have devised ways to reduce implications of their blogged data, the remaining data is useful and of great avenue to access the most important information that may serve as a through way to maintain the competitive pace (Teece 2010 p. 174). The above model outlines that there are several factors that should be considered by international companies such as Coca-Cola. The best thing for Coca-Cola has been to align their operations with the preferences of people so that their needs and preferred expectations are met with minimal resources and with less cost. Resource allocation should go hand in hand and their operations and linkages should be directed towards sustaining their customers so that they accomplish their long term plans and prospects (Sopionated 2013). Policy formulations and regulation of production by Coca-Cola is done after calculating the amount of goods and products that may be required by customers at one specific time of their business year. This ensures that Coca-Cola does not spend a lot of time on storing their surplus. The only storage that should be excessively spent on should be that of storing beverages before a transit is made. Temporary storage is good because it enables retailers and wholesalers to pick their products from accessible points that are less expensive and less costly (Sopionated 2013). An effective business model requires a clear and strategic filter that adopts sustainability towards the future. Empirical model used by Coca-Cola Company (Sopionated 2013) The company uses a simple model to direct usability of its resources to achieve a lot of profits. Coca-Cola Company has well integrated approaches that combines the production techniques to manufacture their products, a case that has helped the company to make huge profits within the shortest timeframes (Sopionated 2013). Marketing Channels of the Coca-Cola Company The Coca-Cola is not a single owner of business products and services. I real sense, it is a chain of companies that operate business operations in different locations of the world. It is very hard to find a single shop in the remotest parts of the world that lacks a Coca-Cola product (Supplychaindigital 2013). This is because, the company has a well established distribution system through which they sell their products to other suppliers who are located at the various identified central points from which the supply can further be made to reach the last customer at the last point of distribution (Supplychaindigital 2013). The company undertakes its operation through a consolidated and multiple channels of distribution. It is unique because this company only sells syrups and beverages to bottling companies. The bottling companies are located at strategic points from within which, they can effectively collect and distribute the products once they are filled with the right amount of the required beverages (Sopionated 2013). In addition, the Coca-Cola Company owns the brand of their products and at every stage of distribution, the company is responsible of everything that the product can cause to customers. The work of bottling companies is to carry out the manufacturing processes, pack the products, carry out the merchandize, and distribute the final products to customers and or other vendors who later on distribute the products to customers who are in different parts of the world (Supplychaindigital 2013). The bottling companies or partners carries out the distribution and they are responsible of taking care of the bottles incase there are breakages or cracks that may pose great danger to customers (Sopionated 2013). The most common types of customers that the company works closely with include grocery stores, street vendors, restaurants, movie theatres, amusement theatres, and convenience stores. The outlined supply chain is along term endevour that has been over time developed by the company to ensure that its products are supplied into even the remotest part of the world. In 2006, Coca-Cola Company brought together all its owned bottling operations were consolidated to form an investment group called the Bottling Investment group (Supplychaindigital 2013). After the formation, the group was ranked as the second bottling consolidated partner operating within the company system. Different stakeholders from different bottling companies allover the world met in 2007 to evaluate and determine the challenges the company faced as a result of different regulatory laws that are imposed by different nations. As a strategy, the Coca-Cola Company ensured that most of its bottling will be done by representative bottling offices that are situated in different countries of the world. The diversification and the bilateral agreements ensure that sales made by Coca-Cola Company are streamlined and directed towards generating profits for the company. The diversified channel of distribution helps the company to minimize risks because it has established long term business deals with stakeholders and representatives in different countries (Supplychaindigital 2013). Complexity is one of the aspects that forced Coca-Cola Company to diversify its operations and to form a partnership type of supply chain which ensures that products are made and formulated to meet demands of people. It is critical to note that Coca-Cola Company uses a critical supply strategy that includes several channels of distribution because the representatives are much informed on what points will serve as direct entries to meet customers (Supplychaindigital 2013). Sustainability approaches used by the Coca-Cola Company With the current trend in globalizations, several companies including Coca-Cola are trying to adopt methods that are sustainable and easy to manage (Corporate 2012). Coca-Cola Company is the world drink selling company and it has branches in almost all parts of the world except Cuba and North Korea. Currently, Coca-Cola is working closely with world wide Funds, an organization that has devoted their time to make sure that the environment is protected against any pollution or degradation that result from its operation (Green Car Congress 2013). In a bid to achieve their targets and goals, the company has in the recent years managed to design and come up with a plastic bottle which according to the analysis, is recyclable. This is because, parts of it are made of plant materials that are less hazardous to human health and the ecosystems. The company is doing all this to see that all their supply chain system and network is made green for sustainability and for development of communities (Sopionated 2013). With regard to the current prospects, the company is planning to improve technological, areas of water usage, carbon efficiency removal, and areas of sourcing. The company has plans that by the year 2020, it will have a water usage efficiency of 25 percent and that it will reduce carbon emissions by a quarter by the same year. Further scrutiny outlines that the company has long term plans of making sure that their bottles are continuingly made of plant materials which will be sourced sustainably from the environment (Sopionated 2013). The chief executive of the company said that the world has become stressed because the demand for some products is increasing while the supply is either constant or is reducing. According to him, this trend can only and effectively solved by improving the once neglected fractions of wastewaters and utilization of the few available resources (Corporate 2012). The bilateral agreement between the company and the WWF is evident and it is hoped that if the agreement will be good and sustainable, the company will be able to manage its resources adequately than in the past whereby the resources were harnessed directly (Corporate 2012). There are plans that, business operations of the Coca-Cola company will seek to sustain the communities they operate in and in saving the global environment from their any operation that may cause big menace to people’s lives and that of others stakeholders. Amount of water used by the company is enormous such that it can be utilized to irrigate or to water crops on a very large piece of land (Green Car Congress 2013). As a response, the company is planning to replenish its waters to a 100 percent. While using these, the company has devised plans that will enable it to sustainably source sugar, mango, and papers. Increasing the recycling rate of bottle cans and tins is a strategy that helps a community to remain stable and unaffected by the ever increasing number of used cans (Sopionated 2013). The case is evident in many third world countries whereby a lot of cans and bottles are not wholly recycled. Environmental protection The company has so far sponsored a lot of projects in many nations and the trend has been positively increasing. The company has realized that everything requires an input which after investment will result or generate a lot of revenue. Coca-Cola has applied several strategies and a holistic approach to ensure that a fraction of their revenue is returned back to the community it came from. This approach ensures that the community benefits from its approaches and business operations (Corporate 2012). So far, the company has sponsored several humanitarian and sustainable projects atleast to safeguard the community against the global oriented impacts that arises from global warming and rise in emissions. Among the companies that were mentioned to have contributed to global warming, Coca-Cola was among them and till today it is still ranked among the leading sources of global warming (Corporate 2012). The company has severally enrolled identified students in different university to study climatic changes and environmental related courses so that each nations will have a readily available knowledge to consult when matters of environmental degradation arises (Corporate 2012). The entire world is looking forward to see that companies and organizations become responsible of their own actions. For example, several committees have been held by Coca-Cola executives to discuss matters that have environmentally affected many communities of the world (Corporate 2012). As a seconded approach, the company has adopted mechanisms in which they ensure that their products are kept and disposed in a god manner without negatively impacting the environment. Many individuals from the so called third world countries have benefited from the sponsorship that has been made available to direct operations of the company (Corporate 2012). The individuals who benefits from the scholarships are always urged to return home so that the knowledge they have obtained can be shared among the communities in need. For example, an indication of the safest way to dispose a used Coca-Cola bottle may be significant because it can safe the company from many losses that bottling companies can incur. Management of projects and funding of projects has enabled the Coca-Cola Company to make advances in the sales and to be the leading company in terms of drinks manufacture and provisions (Corporate 2012). The best way for a company to remain objective in its business operations is to make sure that their operations involves safeguarding the environment and water sources against pollutions that result both from their operations and from operations of their competitors. A holistic approach and an integrated approach to problems of sustainability should be adopted and related to what the company believes they can accomplish. However, these operations should not jeopardize advancements and progress of the company (Sopionated 2013). It should be considered that only a fraction of the profit should be returned to the community not indirectly but through funding of school children and the needy who have failed to advance in their studies because of failure to have enough money for both tuition and sustainability or boarding (Corporate 2012). This improves the sustainability scale index of the company such that the new experts in environmental world can liaise with the company to make changes in the environment and to highlight problems before they become a big menace to the community (Sopionated 2013). Social Since the millennia started, companies and organizations have been responding positively to problems that face communities. Coca-Cola has not been left out on this. Many communities are suffering from ailments and stressing problems which can be prevented by applying simple methodologies. Coca-Cola has been in the forefront in supporting construction of hospitals and health facilities in many areas of the world. Its impact is clear and empirical in developing world and so far, their activities in saving communities from poverty have been evidenced and proofed. There is one dimensional approach that can address problems facing poor communities in third world economic nations (Corporate 2012). As such, there is need to have more programmed efforts that directs funds and help towards helping communities to be able to exercise their choice. Development of any society is delayed when poverty takes over and this is the item that Coca-Cola has been capitalizing on to ensure that some identifiable communities do not succumb into extreme poverty (Sopionated 2013). In addition, the company has established many programs to counsel people living with HIV and AIDS. Currently, efforts have been made to ensure that people and their livelihoods are protected against intrusions by challenges that may affect their status quo and freedom to purchase what they want or eat what they wish (Corporate 2012). There have been so many disasters in many parts of the world which have always and constantly demanded support from international organizations such as the Coca-Cola Company. It is sure and proofed that for sure, Coca-Cola has given in plenty humanitarian assistance to victims who have been hurt or injured at one point of their lives (Sopionated 2013). Restoration of livelihoods gives communities hope and trust such that they develop a habit of appreciating efforts of the company concerned with their welfare. Long term relationship can only be established where the company under consideration gets involved directly in saving people’s lives and their generations from getting affected by influential factors that affect nature and environments in which people live. The best that a company can do is to establish a concrete and firm relationship with people because they serve as customers of the present days and of the future (Corporate 2012). Conclusion Many organizations have been making attempts to align and vary their operations so that they obtain a global perspective into the future prospects and operations. The Coca-Cola company has managed to carry out its operation in the whole world be altering their supply chain operation and distributions. Green technology has been their advocacy and along term plan to obtain. In so doing, the Coca-Cola Company has managed to outline that their operations will always target at achieving their goals and meeting their targets within the designed timeframes. The areas that are being addressed currently by these organizations include environment and water sector. While doing this, there are prospects and ambitions by the company that by the end of the millennia, it will have obtained the green technology goals and refined their strategies. The major problem that remains to be a challenge is that, the resources are reducing while the demand is rocketing. This means that a strain on the existing resources will always occur and therefore Coca-Cola Company has laid down strategies to ensure that they will utilize and recycle a large percentage of their materials so that it achieves its goals without overstraining and over using the available materials. Bibliography Corporate 2012, The Coca-Cola Company takes digital approach to sustainability reporting and releases first-ever GRI Report. Viewed 20 November, 2013 < http://www.coca- colacompany.com/press-center/press-releases/the-coca-cola-company-takes-digital-approach- to-sustainability-reporting-and-releases-first-ever-gri-report> Green Car Congress, 2013, Coca-Cola Company and Ford unveil Ford Fusion Energi with Plantbottle technology interior. Viewed 22 November, 2013 < http://www.greencarcongress.com/2013/11/20131115-plantbottle.html> Sopionated, 2013, The Coca-Cola Business Model and their competitive advantage. Viewed 22 November, 2013 < http://sopinion8ed.wordpress.com/2012/11/23/the-coca-cola- business-model-and-their-competitive-advantage/> Supplychaindigital, 2013, Coca Cola work with WWF to colour supply chain green, viewed 22 November, 2013 < http://www.supplychaindigital.com/global_logistics/coca-cola-work- with-wwf-to-colour-supply-chain-green> Teece, D.J 2010, Business models , business strategy and innovation. Journal of Long Range Planning, vol.43, no.1 pp. 172-194. Viewed 20 November 2013, < http://www.econ.upf.edu/~lemenestrel/IMG/pdf/2_teece_on_bmi.pdf> Read More