This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
This report is aimed at providing information about the critical success factors of Coca Cola which helped them in achieving such global existence as well as made them stronger to stay competitive for other brands. Moreover, this report will be focusing on the challenges that the company faced with the passage of time and how they coped up with them.
Coca Cola is one of the best and well known beverage companies and it manufactures syrups, concentrates and powders in order to sell them to approved bottling partners because they use them in making finished goods and sell it to distributors. The company was in the form of franchise model when it emerged newly in the market and become known as "The Coca Cola system". Coca-Cola has achieved a dominating position in the beverage industry and develops an extraordinarily higher standard of competition. Studies show that its brand name is renowned over 94% of the population around the globe.Â There are a lot of dynamics contributing to the success of Coca Cola, yet,Â itÂ isÂ understoodÂ thatÂ the key success factors that helped them to achieve this position in the market were efficient leadership, equal employment opportunity, and innovative marketing techniques.
Entrepreneurship is very important factor for the economic growth because it brings improvement economic growth productivity, innovations and also employment opportunities. It is always accepted by the nations. The best example as an entrepreneurship is Coca Cola because they have adopted this term in a very right manner and this is the reason now Coca Cola is everywhere in every far flung places and they made 1.5 billion servings every single day. They are the innovators and we need to learn from those innovators. They are following three key terms such as:
Real time data in immediately feed back into the product
They tap into local entrepreneurial talent
They do incredible marketing
Coca cola has very clear bottom line of stake holders and they take the data and use it for their progress. They have immediate feedback loop, they learn something, put it back into the product and they put it back into the market. Real time data turns on the light. When Coca Cola was introduced in South Africa it was difficult to supply the products in far flung areas of South Africa but Coca cola noticed that there are many local people who purchase Coca Cola in bulk quantity and then supply it to the those areas. This is called opportunity recognition then they decided to train those local entrepreneurs by giving them loans in order to allow them to open micro distribution centers and get benefit from their talent. They hire sales people who distribute the products on their bicycles, carts etc. There are 3000 centers which are employing 15000 people in South Africa. So, it helped to eradicate the factor of unemployment as well as increase in the sales of product.
Similarly, In Uganda there is 90% sales of Coca cola. There is a great lesson for NGOs and government that they should identify local entrepreneurs because they are aware of how to reach that place and then give them opportunities to bring change by motivating them. It is very important to recognize the opportunity and then availing that opportunity through effective strategies.
Leaders impact the work climate and productivity through their actions, priorities, style, and choices. They can create and foster a motivating environment. Developing leadership is not an easy task. Managing others does not necessarily make someone a leader, either. People are perceived as leaders when their intentions and actions are informed by a desire to enhance workplace through individual relationships and business outcomes. According to Kotter (1999) "Management is not leadership, it is more about controlling and problem solving and producing the short-term results expected by the various stakeholders. Leadership is about establishing direction, developing a vision of the future and setting strategies for making the changes needed to achieve that vision. Leadership is about aligning people, communicating the direction by words and deeds to all those whose co-operation may be needed. Influencing the creation of teams and coalitions that understand the vision and accept their roles in the implementation of strategy". Humphreys and Einstein (2004) stated that "leaders are involved in two distinct responsibilities within the motivational progression. First, leaders are called upon to energize followers to exert effort toward individual goals that will accomplish organization aims. Helping employees accomplish their own personal and career goals is an important part of motivation as a result achieving organization goals". The second responsibility of leaders according to Humphrey and Einstein (2004) is "the leader/follower relationship". Trust In the leader and the effective performance of followers are both vital outcomes of successful leadership. Leaders can influence their followers' behavior through communication, training and rewards. Leadership and motivation are interactive. The more motivated the followers, the more effective the leader; the more effective the leader, the more motivated the followers. Leaders should know what tasks and behaviors need to be addressed and must be able to demonstrate to the employees that their performance can improve if they modify their behavior to be more consistent with best practices (Lindbom, 2007).Trustworthy leadership should lead by example rather than standing and watching employees do the heavy lifting, thus employees need the motivation and feedback or anxity, frustration and fear can become the part of the organization culture (Longenecker, Papp & stansfield, 2006). A poor managerial relationship can lead into negative results and lead employees into losing their passion, interest and productivity in their roles.
TheÂ Coca ColaÂ Company was nominated for "TheÂ Capgemini Leadership AwardÂ for Innovation" and it received the award on 8th February fromÂ Paul Hermelin, Group CEO, Capgemini. The company was informed that this reward represents innovative solutions as well as technologies implemented by the companies over several years. Erik Verrijssen, chief development officer was very much excited on this occasion; he shared his viewpoints through a video and stated that, "We are extremely privileged to receive this award. As all of you are familiar with it that, the Coca-Cola Company brings in innovation regularly so, our Information Technology organization attempts to accomplish that goal as well. Innovation is crucial to our policy and so for funds as well as cash flow to innovation yearly. Previous year they performed two most important programs leveragingÂ CapgeminiÂ RDV technology (Rapid Development andVisualization). And it was certainly quick. They were also capable of delighting their users quicker and the answers received from the market were much quicker. So, they also hoarded some money. He also said that, we want to acknowledge Capgemini for letting us to influence this approach and we will surely come up with ideas to do that in the future as well" (CXOtoday, 2011).
Coca Cola has been facing a few challenges in their health and environment area because there are several growing concerns regarding to obesity because due to the sugar in its drinks the company has come under the attack in several markets. And the absolute scale of the business means that it uses significant amounts of water, energy, petroleum-based plastics and other resources in its production. So, in order to deal with these issues, the company has formulated a wide strategy which is named as "Live Positively", and has combined it with its general business plan (Shapiro, 2010).
It includes environmental, organizational, society and "markets" initiatives. Such strategy for sustainability includes supplier companions along with the company itself. As Kent himself declared throughout the conference, "where the population is growing around the world, where natural resources are used, where societies are concentrated towards doing more with insufficient available resources and where customers' expectations are increasing, sustainability is essential to our business stability and endurance (Coca-cola, 2011)."
Equal employment opportunity:
Equal employment opportunity is the right of every employee whether male of female but still in some cases women has to face gender discrimination mostly in the form of sexual harassment. The companies where jobs are mostly male dominated then women have to suffer from such activities. According to the definition of Equal Employment Opportunity Commission, "Undesirable sexual advancement, demands for favoritisms on the basis of sexual discrimination and other oral or physical conduct of a sexual nature when proposal to behavior is made either openly or indirectly by putting any condition on the employment of an individual and acceptance to or refusal of such proposal by the individual is used for making the employment decisions that can have an effect on the performance of that individual by creating aggressive, violent and intimidating working environment (EEOC , 1980, p. 25024)".
It is not possible to differentiate harassers and harassed employees. Generally male employees are committers of sexual harassment. Mostly, 50% male colleagues and 30% supervisors are involved in such cases whereas the mostly women are the victim of sexual harassment. According to a research study, those women who have lower educational background and working on temporary basis is more exposed to sexual harassment. Moreover, females under male dominated workplaces have to face such issues frequently (Mohd Nazari Ismail, 2007).
The Coca Cola Company considers the efforts and contributions made by its employees. Based on the company's value strategy, it restates its long term assurance to equal employment opportunity and affirmative action in employment, which is considered as the most important part of their organizational environment. The Company struggles to build a comprehensive working environment that would be free of any discrimination and physical or verbal harassment regarding race, gender, color, nationality, religious conviction, age, frailty, sexual orientation, gender distinctiveness and appearance, or expert position. They also assure that they will make equitable adjustments in the employment of competent individuals with incapacities, for spiritual beliefs and whenever else applicable.
The Company keeps equal employment opportunity functions in order to make sure the obedience to all rules and regulations, and to Company's policy in the parts of equal employment opportunity as well as affirmative action. All administrators are projected to execute and put Company's policy of nondiscrimination into effect, equal employment opportunity and affirmative action, in addition to avoid acts of harassment inside their given area of concern. Moreover, this is the part of every individual's duty to keep the working environment in such a way which redirects the spirit of equal opportunity and proscribes the harassment (CocaCola).
Coca Cola is continuously earning profit from its packaging innovation throughout its business chain. Its packaging is made from the plant. The Freestyle and PlantBottle packaging were nominated as the winners for Edison Awards of Best new product in 2011. This annual award is given to the most innovative product or services of the year throughout a number of categories. Coca-Cola Freestyle achieved a Gold Award (the highest honor) in the category of New Retail Frontiers. The most innovative fountain machine facilitate the customers to select from above hundred regular and low-calorie branded drinks Â all in the similar footmark as a normal eight-valve machine.
As stated by the Vice president and General Manager of Coca Cola Freestyle, "The Edison Award is prodigious appreciation of the more than five years the Coca-Cola Freestyle team has invested their resources in re-inventing our fountain business". This technology is simply the commencement to bring about change in the game for the beverage industry. We are still in the phases of rollout, and Coca-Cola Freestyle is previously increasing the sales for their consumers and inclination among their customers." The packaging of plantBottle was nominated for Silver Award in the category of Energy and Sustainability Packaging. This packaging is basically made up of thirty percent of renewable materials obtained from plants and different other things and currently, it has been in use within USA and other nine global markets (Coca-cola-company, 2011).
In Coca Cola Company, we focus more on innovation across the globe, and we follow innovation at three stages:
1) Changing, enhancing and educating current central offerings.Â Coca-ColaÂ Zero is a decent illustration of this kind of innovation.
2) Creating end-to-end opportunities and Vitaminwater would be the good example, Just Orange Juice and liquid drinks in European countries with the names of innocent label.
3) Attempting into a different and transformational area. The newÂ Coca-ColaÂ Freestyle dispenser is another good example of transformational innovation.
This source makes available with above hundred different beverage varieties in competition with just eight varieties in our legacy arrangements.
They have done this by making use of micro-dosing technology from the medical industry as well as changing our drink flavors from bigger bags to insignificant cassettes.
Providing the customers with intensely more varieties,Â Coca-ColaÂ Freestyle provides sparkling snacks, liquids, athletic drinks and lemonades.
Altogether, these above hundred beverage collections contains more than seventy low or no-calorie options, more than ninety caffeine-free options and more than eighty brands unapproachable to a different place. In addition to that, if that is not an adequate amount of choice, combination of drinks can also be created (Kent, 2012)
Marketing plays a crucial role in the development of an organization and it is very important to know the cultural values when a company is going to advertise its product. This is the fact that Coca Cola is earning benefit from their creative marketing strategies and now it has become a crucial fact that everybody wants coca cola and this is because the micro entrepreneurs have to sell and make profit from coca cola in their push carts. The secret behind this marketing success is aspiration because it relates to the life that people actually wants to live. They have adopted impressive branding strategy in which they have related the product with aspiration. So, even though it is global company but they have adopted narrow local approach. Their global slogan is open happiness but they have localized it. In America they have related the product as happiness with their family life. In South Africa they relate happiness with sweetie and community respect. They have localized it in 19 different countries and languages. The song waving flag describes the message of unity and celebration. There is a wrong perception among people that if we need something then we might not make it our want but they have attracted the customers by prioritizing their values and describing them in their advertisement. This has made the people more brand loyal.
Throughout their history of Coca Cola, they have proved a constant assurance towards pushing the limitations of innovation in the beverages and at times they have been able to accomplish by paying attention towards their customers and persuading them towards the correct choices which very up to dated branded information and technology in order to enhance their research and development abilities. Coca-Cola is going through its inner plans in order to compress this technology to its bottling companions as well as across its bottling services in 2013 and further than. If the arrangement and methodology is executed across all bottling plants of Coca Cola, the company could keep as much as hundred billion liters of water every year.