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Managing a value Chain - Essay Example

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The value Chain: The cost of a product or service is a sum total of all expenditure incurred by its creator on that product or service. This value is known as the cost price. That product or service is the result of the activities of the many departments in an organization…
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Managing a value Chain
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Download file to see previous pages The concept of value chain was conceived by Michael Porter in his book 'Competitive Advantage: Creating and Sustaining Superior Advantage' "The value chain analysis describes the activities the organization performs and links them to the organizations competitive position." (Porter, 2001). A value chain consists of inbound logistics, operations, outbound logistics, marketing and sales and service. The support system consists of the infrastructure of the organization, HR management, level of technology and ability in procurement. The end result of all these factors is either profit or loss for the organization.
It is intended to take up the Case Study of US soft drink conglomerate Coca Cola, which are the largest soft beverage manufacturer and distributor. It had its humble beginning during the later half of the 19th Century with an initial investment of just US $ 70. This business enterprise has now risen into a giant empire with a capital base of US $ 50 billions. Coca Cola has made itself a popular name in more than 200 destinations in the world, with over 400 varieties of products, and is now a established market leader in the soft drinks scenario. Its other brands include Diet Cola, Fanta, and Sprite. The main marketing strategies being currently adopted by Coca Cola Company are through attractive functional bottling of different sizes and massive advertising coverage media.
Inward and outward logistics and marketing:
Coca-Cola plans to combine with SAP Technologies to create applications for enhanced and improved outboard logistics for its products. This would ensure a greater commitment and show of business competence on the part of its merchandizers, store managers and others responsible for distribution at its outlets. The Company has also spend nearly a year combining 3 North American business units- Coca Cola North America, Fountain and Minute Maid into an integrated unit in order to save costs and enhance efficiencies. It is widely believed by Coca Cola insiders that the combine of Coca Cola Enterprises with SAP is strategically designed to develop software programs which have the potential to control pricing, promotion of products and other marketing and merchandizer efforts to be integrated into SAP Applications (Foley and Kontzer, 2004).
Other secondary activities: Sports sponsorships &cultural interactions:
The Coca-Cola Group has felt it necessary to seek other brand building exercises to increase consumer awareness and promote healthy social and cultural interactions with the local communities as part of rendering social and cultural responsiblities .
By combining brand building with sponsorship of world standard events, high degree of exposure to local markets, and by investing heavily in secondary activities, like Sports Meets, the brand image of Coca Cola is sought to be enhanced and the vibrant and ennervating aspects of this soft drink is shown to blend well with the passion and endurance needed for to participate and compete in global sports and cultural events. "By positioning Coca-Cola as an icon and leading brand that mentally and physically boost consumers", the aspects of associaton with major sporting events are reinforced. (Case Study: Coca-Cola: The Coca-Cola Brand and sponsorship).
Coca Cola has been the official sponsors of the Olympic Games since the Sydney Olympics 2000.It have also contracted to ...Download file to see next pagesRead More
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