Coca-Cola Company - Realisation of Strategic Leadership - Case Study Example

Name Institution Course Date 1. Question 1 1.1. A synopsis of the Coca-Cola Company and strategic components The Coca-Cola Company is an international beverage corporation based in America. The Company manufacture, retail and markets nonalcoholic beverage syrups and concentrates, and its headquarters are located in Atlanta, (Georgia). The company is greatlyrecognized for its topmerchandise Coca-Cola, developed by dispensing chemist John Stith Pemberton in, Georgia in 1886. The Coca-Cola brand and formula was accepted by Asa Griggs Candler in 1889, and thenamalgamatedthe Company in 1892. The company runs a licensedsupplystructurecourting from 1889 where the Companyonly manufactures syrup concentrate that is then traded to numerous bottlers all over the world who have an elite territory. Broadcaster bottler of The Coca-Cola Company (Coca-Cola Refreshments) is in North America (Waldemer 2008). The company has an extensive past of acquirements. Coca-Cola assimilated Minute Maid in the year 1960, Thums Up cola brand of India in 1993 and Barq's in 1995. italso acquired fruit juices brand (the Odwalla), bars and smoothies in 2001.Fuze Beverage was also acquired in 2007 for aprobable $250 million.Columbia Pictures was purchased in 1982 by Coca-Cola for $692 million which later soldit in 1989to Sony for $3 billion (Iarca, Ruşeţ, Sima& Gheorghe 2011). Generally, Coca-Cola and its branchessolitarilycreate syrup concentrate, which is sold to numerous bottlers all over the world who have a Coca-Cola permit. Coca-Cola bottlers create the completedproduce in bottles and cans commencing the concentrate in mixture with siftedsweeteners and water. The bottlers then retailmerchandise and distribute the successive Coca-Cola item for consumption to vending machines, retail stores and restaurants. The exception to this broadassociationconcerningbottlers and the Company is source syrups in America, where the corporationevades bottlers and is accountable for the sale and production of fountain syrups straight to certified fountain dealers and retailers. Coca-Cola presentlypossesses Coca-Cola Refreshments whichcomprises of bottlers previouslypossessed by Coca-Cola Enterprises (Waldemer 2008). The Coca-Cola Company deals inover 500 brands in over 200 nations, separately from its namesake Coca-Cola beverage. It is the best-selling soft drink in voluminous countries. Coca-Cola is main lobbying force in work to achieveauspicious legislation for the beverage productiveness. Lobbyingexpenditures are owed to the business’scontest against amplified taxes on sweetened beverages and soft drinks. The company also sponsors various activities and shows over the periods of times. For instance, the Company was the official sponsor of the English Premier League for the 2004-2005 league season. It also sponsored the various TV shows and series e.g. the American Idol (Iarca, Ruşeţ, Sima& Gheorghe 2011). The Coca Cola Company enjoys the number one bestselling beverage industry on the planet. 2. Question 2 2.1. Strategic leadership Considering the task environment, the forces that have been out of the short-run management control have been relatively abandoned over the time in the activities strategy research. This environment of the company highly affects competitive hostility, availability of labor and the dynamism of market. These factors are the ones that will significantly affect the capacity and capabilities of the Company to develop. For instance, for the Company to manage a new product introduction into the already existing marketor addition of value to an existing product there must be incorporation of new staff that will specialize in that area and also there is need to provide marketing strategies to cater for this product. The competitive hostility of the company will either favor the Company positively or negatively to be accepted by the partner firm to produce new product. For instance due to the dominance of this Corporation in the beverage industry, the partner firm will readily accept its offer since this is a highway to marketing its other products as well as gaining more publicity in in other places.As a manager, it will be vital to create value in the management process strategically. In addition to the existing value creation activities which the company deals in, it would be important to consider addition of the other services like the customer care services on the product and after sales services. In the marketing procedures, free gifts may be offered to the first clients. As a strategic manager, I would first identify the strong relationship between the above factors and the choices of operations strategy which are encompassed by competitive priorities of the Coca Cola Company. The long term strategic planning and management of theseexternal resources will enable the firm to record very high performance in the business world (Line &Lasmane 2014) In order to achieve the advantage in the market over the existing products, I would see to it that value is added to our new product that the two firms will introduce in the market. Since The Coca Cola Company realizes profits that highly exceeds the average for the beverage industry, the Company possess a very high competitive advantage over the rival firms. The same case exists for the potential partner; The Sony corporation. Due to the partnership between the two firms, the resources available to carry out the activities will be in surplus. Therefore it will be reasonable for the new product to have a high quality standard, higher than the existing products from other firms, and sell them at a cheaper price as well and still manage a large revenue realization. This increases the competitive advantage of the firm. (Ding, Li & George 2014). For the successful accomplishment of the value creation and improvement of the competitive advantage, I would use the following structural model to get it done. Bring the resources together from both firms and manage the capita keenly to get the process done, analyze the capabilities of both firms to carry out the activity (both are very capable in all aspects), use the two properties to create distinctive competencies and qualities to the production to modernize the existing competition and deliver the best among the best, get the cost advantage by differentiation of the upgrading costs and the revenue generated by the final product and finally leading to the value creation. The following is the summary of the processes that delivers value creation giving the company competitive advantage (Iarca, Ruşeţ, Sima& Gheorghe 2011). 2. c For a big corporation like The Coca Cola Company, the already established market share worldwide just provides an ample environment to develop and establish new markets in other areas or regions. In order to expand its operations, I would incorporate the corporate-level cooperative strategy in the managerial processes. This will encourage the Company to go out of its line of production and deal in another line of product in collaboration with another company, for example company like Sony collaborate with it in the provision of the games (PlayStation and video games or other games). Since the company has all the resources available from many countries, this would not be a problem at all (Worden 2003). Corporate-level cooperative strategies will allow the Company to expand into new product and market areas without completing acquisition. Cooperative strategy is among main alternatives companies use to mature, develop importance-creating competitive rewards, and generate variances among them and opponents. Therefore, collaborating with other companies is an additional strategy that can be used to generate value for a client that surpasses the cost of making that value and to form a satisfactory site in the marketplace. This process will be almost like amalgamation process but it will not change any rights of production of any of the companies and the quality of the production will not be compromised. The type of the games produced and the playing gadgets will only be modified to the specifications of the two firms and their logos may be retained with the only difference being the appearance of both logos on one product. This would be a wise idea as the modern world is changing to adapt to the new technological changes which are occurring fast. There may be introduction of new type of product(s) to be produced in conjunction of the two firms. The marketing of the new kind of products will be done by the team specialized in that kind of product but the team to be from both sides. The promotion of this kind of product will favor both firms and their other products. This plan will delivervarious the possible synergistic profits of acquisition, but there is also a little risk and givelarger levels of flexibility. The risk will be shared between the firms and the greater part of the profits also. The strategy will also provide competitive advantage due to successful externalization of alliance experiences. The Company will gain full value from this planning by establishing it and substantiating that itis always correctly dispersed to those convoluted with founding and using associations.Generally, strategic alliance accomplishment needs supportive performance from partners, keenly unraveling hitches, being dependable, and steadily following ways to pool partners’ capitals and competences to produce value (Lahtero&Kuusilehto-Awale 2013). The formation of this cross-border strategic alliance will expand the domestic success and also expand into international markets. Since both corporations are multinational, they will outperform the firms that operate only domestically even at home in the provision of the products. The long run of the process will lead to production of many products that have high market value and demand. Also the strategy outcomes can be predicted more easily and precisely than the outcomes of an internal product development process since the previous product’s performance is already gauged and known. The firm’s dependence on particular markets which alters the firm’s competitive scope will also be reduced. The company will also get an access the different field of new and special technological capabilities in the production of the n4ew gadgets with connection to the Sony Corporation. It is also advantageous to the firm since it is problematic for competitors to comprehend the procedure and copy. Other advantages the Company will enjoy are; growth by increasing own operations of business, the benefits and costs of diversification can be balanced, can lead to synergy if the value produced by firms working together will surpass the value produced by the two operating independently (Ding, Li & George 2014). Some of the problems to be anticipated in the application are; factors related with the firms functioning in the market or the market itself can increase the expense and difficulty for new products in gaining immediate market access, the entry barrier may prove difficult to overcome and also it may be difficult to negotiate and workdue to differences in foreign cultures. Interior development of new merchandises is also frequently alleged as a high-risk motion and the process allows the corporation to gain access to products that are new to the firm. Associating different control and financial systems may also prove to be a problem. The audience may wonder, what as a manager can I do to hedge the Company from the uncertainties? Since the Alliances are frequently used in a place with uncertainty like inflowing new invention markets and technology standardscooperative strategy of alliancing with the company with market experience hopes to enable the Company to decrease the risk of providing the productsin other regions. It also hopes to increase the market of its other products in the area where it invests. Since the Sony Corporation has existed in this technological market favorably competing with its rivals and consistently expanding market share, its collaboration with our multinational Company will prove an easy job that heighten the product selling capacity and increase the level of market share held by both firms (Worden 2003). The audience might also ask; why is it important to create value? The main impotence of creating the value is to increase the competitive advantage of the firm in comparison to other firms providing the new product. Through the already highlighted process, the companies partnering will outperform all other rivals as far as customer satisfaction and quality of the product is concerned (Lahtero&Kuusilehto-Awale 2013). Conclusion . As a strategic manager, external management tactically will indirectly lead to the management of the firm’s operations effectively as the people carrying out these operations are already managed. The long term strategic planning and management of these external resources will enable the firm to record very high performance in the business world.The formation of the cross-border strategic alliance will expand the domestic success and also expand into international markets. Since both corporations are multinational, they will outperform the firms that operate only domestically even at home in the provision of the products. The firm’s dependence on particular markets which alters the firm’s competitive scope will also be reduced. The company will also get an access the different field of new and special technological capabilities in the production of the n4ew gadgets with connection to the Sony Corporation. It is also advantageous to the firm since it is problematic for competitors to comprehend the procedure and copy. Other advantages the Company will enjoy are; growth by increasing own operations of business, the benefits and costs of diversification can be balanced, can lead to synergy if the value produced by firms working together will surpass the value produced by the two operating independently. References Ding, F, Li, D, & George, J 2014, 'Investigating the effects of IS strategic leadership on organizational benefits from the perspective of CIO strategic roles', Information & Management, 51, 7, pp. 865-879, Iarca, I, Ruşeţ, V, Sima, V, & Gheorghe, I 2011, 'Sustainable Development - Essential Business Strategy Vector of Coca-Cola HBC Romania', Petroleum - Gas University Of Ploiesti Bulletin, Technical Series, 63, 4, pp. 65-72 Lahtero, T, &Kuusilehto-Awale, L 2013, 'Realisation of strategic leadership in leadership teams' work as experienced by the leadership team members of basic education schools', School Leadership & Management, 33, 5, pp. 457-472 Line, A, &Lasmane, A 2014, 'Leadership, Communication And Union Commitment In Latvia: Development Perspectives Of Strategic Management', European Integration Studies, 8, pp. 141-151 Waldemer, TR 2008, 'Imperfect Harmony: Coca-Cola and the Cannibal Metaphor InBeba Coca Cola, Sangue De Coca-Cola, And A Hora Da Estrela', Hispanofila, 153, pp. 97-108 Worden, S 2003, 'The Role of Integrity as a Mediator in Strategic Leadership: A Recipe for Reputational Capital', Journal Of Business Ethics, 46, 1, pp. 31-44 Read More