Free Research Paper About Company Overview
Business operates through formidable strategies and policies towards ensuring profitability and revenue yield. From the analysis of coca cola, its operational success has mainly been due to diverse strategies that ensure performance and market dominance. Thus this paper will evaluate coca cola as per the case questions.
1. Create an overview of the company. Include such things as mission/ethics statements, products, markets, recent financial performance, global operations (if any), etc.
Coca-Cola is a recognized global brand that is involved in manufacturing distributing and marketing non-alcoholic beverage concentrates coupled with syrups. The company owns and licenses in the excess of 400 brands inclusive of diet and light beverages, juices, teas, coffees, energy drinks and water. Additionally, the company has myriads of bottling and canning operational centers across the globe. Coca cola sells its finished beverages bearing their coca cola trademark to more than 200 countries (Comeford &Callaghan 2011). As at November 30, 2010, the company was operating through the following segments; Africa, east south Asia, Pacific Rim, the EU, Latin America and North America.
Accordingly, the activities of the company straddle in the holistic sectors of the soft drink industry. As at 2005, the company led in volume in terms of its sales in fruit/vegetable juice and ready drinks (Comeford &Callaghan 2011). Additionally, it was the second leader in reference to functional drinks and Asian based specialty drinks. Moreover it was ranked third in the water bottling sector. On the financial performance aspect, the company has ever been growing since its inception over 112 years ago. As at 2009, the company had grown plausibly with revenues at $24 billion. As such, most of its revenues originated from outside the domestic US market. Analysts state that 73% of its colossal revenues were not from the domestic market. As such the company had to shape up considering the great impact of the foreign market. The growth of the company was mainly due to the brand extensions and the ever enlarging distribution network. However, growth in terms of volume of cases increased by only 3% as at 2010 while remaining stagnant in sectors such as North America and middle east (Comeford &Callaghan 2011). The dwindling nature if the carbonate market has been of major concern to the company in its operational strategies.
2. Complete a SWOT analysis
Organizational performance mandate emanates from clarity in regards to the environment and the various aspects that impact on the performance. Thus, from the analysis of coca cola, the inculcation of SWOT analysis is advisable towards the comprehension of the business environment. SWOT analysis denotes an evaluation of the organizational strengths, weaknesses, opportunity and strength. A clear analysis of the organization is as follows:
An already established global brand
An efficient global supply chain
Litigation regarding labor laws in various countries of operation
Conflicts of interests with its distributors
Growth of emerging economies such as china pose a lucrative avenue for capital investment
Online business poses a new approach for operational approach for the business
Reducing market share in USA
Growth of health conscious consumers
3. Identify the company's strategic objectives.
Coca cola operates within a highly competitive environment. As such, the competition evident from organizations such as Pepsi has posed an avenue for proper investment into diverse strategies and objectives to ensure profitable outcomes. Thus, from the analysis of coca cola, the main strategic objectives include:
maintain market dominance in emerging economies such as brazil, china and India
ensure consumer centric beverages are available within the market
sustain market leadership globally
4.Explain specific plans in place to meet objectives (identify elements of price differentiation, image, support, quality, niche, penetration, geographic expansion, and any other marketing, operational, HR, or financial initiatives that might be in place).
In order to meet the objectives set in coca cola, the inculcation of penetration pricing strategy and geographical expansion have become the two approaches towards ensuring and heightening profitability at coca cola. Thus, an in-depth analysis of the two strategies is as follows:
Penetration price strategy
Penetration pricing strategy denotes the inculcation of a low pricing approach towards ensuring market share within a market. Thus, from the analysis of coca cola, towards ensuring market share growth in countries such as china, it has been investing into avenues towards ensuring their products are construed to meet the price range of the mass market (Henry 2010). The advantage of economies of scale has been highly crucial for the organization towards ensuring an effective pricing mandate.
Geographical expansion into diverse markets has played a critical role within coca cola. Through the financial strength of the organization, ventures into various markets have been evident. Most fundamentally, a localized approach in expansion has been evident towards ensuring that the company’s products are available (Henry 2010). 5. Determine if the company has contingency plans for possible risk events and evaluate the viability of the plan.
Coca cola has put in place two main contingence plans towards mitigating the evident risks events. As the first approach, the company has been investing into an acquisition approach. Acquisition has been construed towards purchasing the various companies within the local market that have already established a market share in the beverage industry, as the second approach, the company has been investing into research and development. The investment into research and development is highly imperative for the organization to ensure market relevancy.
Hence, from the analysis of the two contingency plans, their viability emanate from:
acquisition of local businesses is bound to catapult the market share of the organization
inculcation of research and development ensures dynamics in operations and production of beverages that meet the market
6. Evaluate the business strategy by indicating whether you agree/disagree with the company's present strategy, situational factors (if any) that you think might have been overlooked, and any suggested changes that you would make to the strategy.
Coca cola has been investing into the resource focused strategy. As such, the resourced focused policy of approach is a strategic method which many of the managers have been using in the formulation of their strategies. As such, the strategy is mainly focused on the internal environment as opposed to the external environment. The external environment forms a reasonably proportional part in its analysis. Most pundits state that the advantage of focusing on the internal environment as a policy in strategy analysis and formulation, the company takes into consideration the factors that it has mandate and can regulate (Henry 2010). As well, the factors that the company has control over are mainly the strengths and weaknesses.I agree with the resource focused strategy at coca cola. Admittedly, the company, through the resource focused approach has maintained sustainable performance. However, as a recommendation, the company should invest more in the quality system that ensures standard in quality and service. Empowerment of its various stakeholders, through remuneration, training, development and sustainable policies in relationship should ensure highest quality or products are meted out to their consumers
Business operations are dependent on the strategic approach incorporated towards sustenance of profitability and revenue yield. As such, from the analysis of coca cola, the resource focused strategy has played a critical rolled towards ensuring market growth. Further inculcation of the approach into new markets is bound to catapult the organization to greater heights of performance.
Comeford, R., and Callaghan, D. (2011). Environmental, industry, and internal analysis.
London: Prentice Hall.
Daniels, John D., Radebaugh, Lee H., & Sullivan, Daniel P. (2011). International business
environments and operations (13th ed.) New York: Prentice Hall.
Henry, A. (2010). The Internal Environment of an Organization. London: Oxford
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