Report On Coca Cola Limited Business Essay
This report is based on coca Cola Company limited which is the company of my choice according to the recommendation of the assignment. There are many questions to be answer in this report. Many of these questions were meant to be answer according to all the information’s obtain from my choosing company.
The first part of the report talks about the introduction of coca cola after is the history of the company as it was introduced in 1886. After the introduction the report talks about the mission statement, aims and the objectives which were set for the period of 10years.
The next part of the report talks about the environmental analysis that is affecting the brewery business. It also explains the various factors that is affecting these industry as a whole especially the coca cola company and they are external/remote factors and internal/industrial factors. Then it continued by discussing about the strength and the weakness of coca cola.
The third part talks about the strategic models, explaining and differentiating the strategic model.
The fourth chapter will explain about the various information required at each managerial level of the company.
The fifth chapter will talk about the required information system for coca cola so as to have the competitive edge over their competitors and as well explain more about the customer relationship management (CRM). The last part will stress more about the ethical issue.
For the survival and continuous growth of a business, strategy is the key concept. This concept does not only occupy the minds of the directors and managers of business but as well the mind of other stakeholders within an organisations.
Strategy arose as a result of need to make the best decisions and solutions arising in a turbulent world in such a way that will lead to the achievement of the organisation objectives. It is about making very tough decision on some parameters.
This report seeks to advise the board of direction of coca-cola on the possibility of the organisation to be able to participate actively on the national and the global market. Strategy management is a key issue in the management and fulfilment of the objectives of coca-cola company.
Coca-cola Company is the company leading in the production, distribution and the market of non-alcoholic beverages.
History of coca cola limited.
In 1886, a pharmacist called John Pemberton Smyth introduced Coca-Cola in Atlanta, Georgia. Pemberton invented caramel coloured syrup first called the Pemberton’s French coca wine which came as a non-alcoholic version of the French coca wine. The product was first distributed in a jug
A long the street of the inventor’s pharmacy and later it was been sold at the soda foundation restaurant.
In May 29 1886, John Pemberton ran the first advert of coca-cola in a journal called the Atlanta Journal, in the same year the sale of the Coca-Cola was averaged at nine drinks per day. In the year 1887, Asa Griggs Candler acquired a stake in Pemberton syrup and incorporated it as Coca-Cola Company, 1982 Candler incorporated a second company called The Coca-Cola Company. The business grew across the united state and in the 1984 the first manufacturing plant to produce syrup was opened in Illinois, Chicago, California and los Angelis, due to the increase in demand for coca-cola the company out grew it facility and in 1898 had to build its very first head quarters which was committed mainly to the production of syrup and the management of the business. Strategy among academics is still a matter of argument. After many years of argument and debate there still was no completed definition as to what strategy really is.
1899 the first coca-cola made a bottling agreement by two young attorneys from Chattanooga, Tennessee so who believed they could build a business around the bothering of coca-cola. The right to the bottling was given.
In the 21st century precisely 2005 coca-cola launched two diet productions which are the diet coke and the coca-cola zero which was widely accepted as a result of consumer’s consciousness to health issues.
Presently the coca-cola company is the world leading manufacturer, distributor and marketer of non-alcoholic beverage. The company produces ranges of products from diet and light beverages, water, juice drink, coffees along with energy drink and sport drinks. It presently operates in more than 200 countries with about 100,000 employees.
Today the products of coca cola are consumed by over one billion drink per day.
It is very important to generate a mission statement in an organisation because it is an important factor in the organisation strategic planning and strategic management (David, 2001). A mission statement establishes beliefs, values and guidelines for the way the organisation conduct its business and determine its relationship with its stakeholders, employees, customers, suppliers, government, shareholders and the community(Ackoff, 1987). A well written mission statement will answer all this listed question according to (Drucker, 1997) – What is our business, What are the customers, What will the business be, What is the business like and lastly What will be the value of the customer.
Coca cola declares their company mission statement and make it the standard against which their actions are weighed;
To refresh the world
To inspire the moment of option and happiness
To create value and make a difference
Our vision serves as the framework for out road map and guides every aspect of our business what we need to accomplish in order to continue achieving sustainable, quality growth
People- be a great place to work where people are inspired to be the best they can be
Portfolio- bring to the world a portfolio of quality beverage brand that anticipate and satisfy people’s desires and needs
Partners- nature a winning network of customer an suppliers, together create mutual, enduring value.
Planet- be a responsible citizen that makes a different by helping build and support sustainable community
Profit- maximize long-term return to shareholders while being mindful of our overall responsibilities
Productivities- be a highly effective icon and fast-moving organisation
Our values serve as a compass for our action and describe how we behave in the world.
Leadership- ‘the coverage to shape a better future’ even though coca cola is the best known beverage and bottling company in the world, they have not yet cover the many areas in the world. They have plan not to only cover the entire planet but believe to deliver a better service in the years to come and to achieve this, they have put in place a recycling system and as well plan to continue in reducing their emission in their various plants.
Integrity- ‘be real’ coca cola believe that there product must be a genuine one because their integrity depend on it, if consumer noted that what they portray is not what they deliver, this will surely tarnish and stain their image.
Accountability-‘If it is to be, it is up to me’ coca cola has taken their stand to be accountable to everything they produce without any regret or concern. To make this happen the company must put in place the best for the job, people who are devoted to the development of the company.
Diversity- ‘as inclusive as or brands’ coca cola has taken drastic steps by producing different product and promoting the value and brand of those product. The need to increase promotions and advert on some of their product that many consumers around the world are not familiar with.
Someone might be thinking that what is an environmental analysis got to do in the business perspective? This analysis is factors or features that do influence an increase or decrease in the quality of strategic decision making in a business environment.
There are various factors under this analysis that could help to attain the objectives of a company and as well act as a barrier.
The environmental analysis can as well be divided into two parts.
Remote (macro) environmental factors: these are the factors that affect company or the organisation of which they do not have control over it. These factors are;
Industrial (micro) environmental factors: these are factors that the organisation or the company has some control of. It can also be called ‘porter’s 5 forces’. These factors are;
Barrier to entry- these has to be high
Supplier power- these should be low
Substitute- has to be low as well
Competitive- has to be low
Buyer power- it must also be low.
To explain further about the environmental analysis, let take a look at how this concept affect Coca cola itself in their day-to-day business.
For the past few years, because of the economic meltdown in various countries around the world, there has been an increment on interest rate which has made consumer to reduce their spending rate. Consumers tends to spend more on basic food material and even prefer to buy value product from the shop or in the local markets e.g. ASDA and TESCOS have their local made beverages which are cheaper rather than spending money on Coca cola product.
Nowadays human tends to be more concern about their health, we monitor whatever we consume, we also wanted to be slimmer, fitter and this makes us to be more conscious about what we consume or drink. Even though coca cola launches a diet coke so as to attract consumers that tend to be more concern about their diet but many are still not convince about this, they believe fizzy drink are bad for health. Also Coca-Cola has also contributed immensely to charity organisation.
This recent increase on VAT has make the company to increase their product as well, also the recent government rule to reduce the amount of workers i.e. employment rules, this has put a reduction in number of people buying their product, the company has to follow different government laws which are changing or been updated every day like the consumer protection legislation, health and safety law, environmental law and as well employment law.
Coca cola has recently launch a system where by consumers can trace their where their can or bottle were made from. These tools enable you to know the carbon footprint of your drink, the ingredients and what they use for the packaging.
This factor mainly based on the climatic changes. In the recent years the government have been emphasising more about how to reduce carbon emission. Coca cola have embraced this idea. They engage in the turn off rally that took place in London organised by World Wildlife Fund WWF, the idea is to tackle the climatic changes. Coca cola also plan to reduce their carbon dioxide emission by 5% in the developed countries by 2015.
A major strength of Coca-Cola is the brand is the companies. It is one of the world’s most precious brands.
High level distribution network: The Coca-Cola Company has a reliable and strong network. The network is based on the basis of the amount of sales yielded by a specific customer in a transaction and on time of consumption. Coca-Cola has a network that consists of over 700,000 efficient salesmen and retail outlet with more than 8,000 distributors.
Innovation/ new products: Coca-Cola always launches new products every time such as the diet, zero coke, vanilla coke, etc. Coca-Cola is highly innovative in their product equipment, marketing and packaging of the product.
An example of innovation in product is the innovation of Nutritious juice which is fortified to battle the malnutrition in children.
Affordability of Coca-Cola in some part of the world. Some people cannot afford to buy coke because of the price the product is been sold. An example is Bangladesh.
The non-availability of Coca-Cola product for every age group: the main concentration of Coca-Cola is on the younger generation; so much attention is not paid on the older generation.
Large domestic markets: the domestic market for Coca-Cola is very high unlike any other soft drink producer.
Coca-Cola has a high level of innovation which helps to sustain a competitive advantage.
New market exploration: Coca-Cola has the opportunity to easily explore market throughout the world.
Substitute product: there are many other soft drinks making way into the soft drink industry now.
Strong competition: Coca-Cola is faced with tough competition. This especially in Bangladesh were the product does not only compete with Pepsi but also Pran and R.C Cola.
Increase consciousness in healthy living: consumers of Coca-Cola now prefer to consume nutritious beverages rather than traditional drinks.
Recommended strategic models
In the competitive world of business most companies do like to pick the most suitable and appropriate strategies to meet their goals and objectives. Most of companies do tends to pick these generic strategies for the implementation stage in their business. These are;
Cost Leadership strategy
Market Segment strategy
This report would like to recommend coca cola Company to implement the Differentiation strategy model in their business. Differential strategy is the development of new products and services that provide unique features and characteristics that are valued by customers and which are not been practice by their competitor. The value which will be added because of the uniqueness of the product will make the company to charge premium price for their product. Although the brand name of coca cola is very unique but by adopting this strategy will help them more. Coca cola should implement this strategy because it can give them a wider competitive edge over their competitor because of the uniqueness of their product, also they should always try to concentrate or focus more on the product innovation and developing product features that allows customer’s value to stay competitive. Some of the good examples of companies that are successful in using this particular strategy are Apple, Pepsi co, Marks & Spencer and many more.
For companies to succeed using differential Strategy should have the following internal strength;
Should have access to leading scientific research and the latest information for the nonalcoholic industry
The company should have highly skilled and creative product development team that will bring up new ideas for the company.
They should have corporate reputation of quality and innovation in the business environment as well as around the world in general.
They should have strong sales and marketing team personnel who have the ability to successfully communicate the perceive strength of the product and services deliver by the company.
Information required at each managerial level
The managerial level are divide into 4 levels namely as;
To acquire information about, what are their competitors doing overall in business environment?
To acquire what laws have been introduce by the government in the beverages industry.
To acquire information about their sales trends and power in the business.
What are their competitors charging in terms of prices?
What type of flavour have to be terminate or introduced in order to increase their profit
What kind of staff to be recruited or omitted to strength the company
What are the new flavour and product to introduce in the world for beverages and non-alcoholic industry
What kind of offers to be provided to their consumers
What kind of product flavour to be used in different region and countries in order to increase profit and competitive edge of the company
What type of new truck to be bought?
What are the new designs of the company brand which will be more admiring by the public?
What are the prices of each product?
To make order for the marketers?
Which product is going to what region or country?
INFORMATION SYSTEMS WHICH WOULD GIVE COMPETITIVE EDGE TO THE ORGANISATION
Information system can be expressed as a sub-system which provides support to an organisation by collecting, memorizing, processing and distributing necessary information which support the management process and business of the organisation. These reports believe there are systems in information systems that will give coca cola the edge over its competitor like Pepsi in the non-alcoholic business world if properly adopted in the organisation.
Sustainable Packaging Information System.
This system will help and guide the company on how to reduce materials used for packaging. The usage of cans and bottles can be reduced by recycling the used ones of which more profits will be gain by the company.
Access control system
This is a system which will help in permitting or denying access to particular resources from a certain unit. This will help in managing physical resources or digital resources. This will increase efficiency and the performance of the company by utilizing the resources fully.
Water replenishing system
This is a system that will help reduce wastage of water usage, expand the support healthy water usage and balance the amount of water uses for the finished products with the available returned water. In other word, the water nature is being return back into its source after usage.
Resources Management system
Resources management system will help the planning, and monitoring of major resources at the factories through an integrated suite of modules. The highly configurable consumer or marketer will be used in capturing business and countries preferences and rules. It will offer appropriate information’s and long term planning support for many of its marketer and consumers. This system will be supported by another system that will be providing a set of algorithms to evaluate potential resources allocation according to a set of consumers and countries defined rules.
Energy Management System
This system will help the company on how their business can grow by managing the usage of the energy. Reducing energy emission, creating new source of energy, installing or adopting energy saver cooler and equipment into the company.
impact of information system on CRM.
The use of information system help to coordinate all the business of the company
It will help to make available the common view of the consumer/customer across the entire all over the world.
It will also help to provide answer to customers question by collecting their data from different sources.
It helps to identify the entire loyal and profitable customer and provide end-to-end customer care.
Ethics can be elaborated as principles of conduct that governs an individual or a group of people. Ethics is the study of morality. Morality are the principles that an individual or group of people know about what is right and what is wrong or what is evil or good.
Morality can be expressed in two aspects such as
Moral Norms- These are normally general rules such as “Always say the truth”. People tend not to say the many time but moral norms require us to say we have to say truth no matter what.
Moral Values-These are normally a statement that does explaining features or object that have worth, such as “honesty is good” and “injustice is bad”. Honesty is a good virtue and injustice can be very damaging.
The following are the characteristics of moral standard.
Moral standards are used in matters I think where there can be serious injuries or serious benefit to human beings.
Moral standards are created or changed by a particular legislative body.
Moral standards can also be preferred to other values including self-interest.
Moral standards are related to special emotions and special vocabulary.
Moral standards are based on impartial considerations.
The theory behind ethics to be a study of moral standards is because it process and examine the moral standards of individual or society whether these standards are reasonable or unreasonable for the purpose of applying them to concrete situation or issues. The ultimate aim of ethics is developing a body of moral standards that we feel are reasonable and can justify standards for us to accept and apply to the choices that fill our lives.
The Nature of Business Ethics
Business ethics focus on the moral standards as they apply to business policies, institutions and behaviour. Business ethic is an applied ethics. Business ethics consist of moral norms and moral values analysis and it also attempts to apply the conclusions of this analysis to these collections of institutions, transactions, activities and the pursuits that which is call business.
Business ethics involves three different kinds of issues known as;
System Issues- These are ethical questions that arise from economic, political, legal and other social system within the business operation. All these issues must be properly monitor within the business operation.
Corporate Issues- These are various ethical questions mentioned concerning a particular company. The questions are all mention within a particular corporate body in the organisation.
Individual issues- These are various ethical questions raised regarding a particular individual or particular individuals within a company and organisation.
Coca cola is still trying to gain more ground in some region or continent around the world even though they are tend to be leading non-alcoholic beverages producer and manufacturer in the world, but they still a very strong competitor like Pepsi. Coca cola gain a little percentage of market shares in Africa comparing to that of America. They need to improve more on the quality of service they give back to these regions, encourage more low emission usage of power. Also they should implement system that will give them more edge competitive edge over their competitors. Lastly it will be a good idea for them to adopt a differentiation strategy plan which will bring new ideas within the team towards the profit growth of the company.
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