The company of our group had chosen in the private sector was The Coca-Cola Company. It is an incorporated business and also a public limited company. The Chairman of Board of Directors and Chief Executive Officer of The Coca-Cola Company is Muhtar Kent'. This company is world's largest beverage company and inspired by the world's greatest brand. The Coca-Cola Company starts up since 1886 and it is a 126 years in the business.
The Coca-Cola Company provides more than 3,500 types of non-alcohol drinks. The company mainly sales and market carbonate drinks but also sell a variety of drinks such as fruits juice, coffee, teas, water, energy drinks, sport drinks, soft drinks, enhanced waters, milk and others. The Coca-Cola Company produced four of the top beverages brand in the world, which are Coca-Cola, Sprite, Diet Cola and Fanta.
Now, there are more than 200 countries and regions sale the products of this company and The Cola-Cola Company have more than 146,200 of worldwide employees. The company also sell 1.8 billion serving per day. The company increased their dividends consecutive in the last 50 years.
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The global nature of business of The Coca-Cola Company produces their products by using highest standard the Coca-Cola System. The Coca-Cola System can produce good quality and standard size products from production to bottling and the process of delivery product.
Furthermore, The Coca-Cola Company show the local and business environment in the community investment and global pillars. The global pillars of The Coca-Cola Company shows they want to make difference in water stewardship, active healthy active living, community recycling, education and locally-designated priorities.
The Mission, Vision & Objective Of The Company
Mission of The Coca-Cola Company
"A mission identifies what the company is in business to do and how it is going to do it." (The Open Learning Foundaton, 1998) The mission of The Coca-Cola Company is "At The Coca-Cola Company we strive to refresh the world, inspire moments of optimism and happiness, create value and make a different." The company starts their mission in a long term and declares their purpose of the company. This mission also helps to encapsulate the value of The Coca-Cola Company.
Vision of The Coca-Cola Company
The Coca-Cola Company had set up the 2020 vision in the outset of 2010 to continue to achieve sustainable and they also determined to achieve the 2020 vision in the year 2011. This 2020 vision are measure by the 6Ps concepts, which are Profit, People, Portfolio, Partner, Planet and Productivity to make sure the Coca-Cola System success.
Profit means that The Coca-Cola Company want to maximise their profit and making the highest profit in the next few years for their shareowner. The profit can allow a business to survive.
People in the 6Ps concepts is The Coca-Cola Company will provide a large and suitable place for people to work so the employee can put more effort and do well in their job. The employees are motivated to work vigorously in a good working environment.
The Portfolio in mission means portfolio their brand and brings the brand to the world. The Coca-Cola Company always looks for their consumer to understand their customer demand.
Next, the Partner in the mission shows that they want a good relationship with their customers and suppliers. The Coca-Cola Company also trust the beverage partner and together to become valuable.
Moreover, another mission is Planet. The Cola-Cola Company wants to be a responsible citizen and the global leader in beverage and packaging.
Lastly, the Productivity means that The Coca-Cola Company want to "Be a highly effective, lean and fast-moving organisation." The company needs to ensure their productivity by using the flow production system that can produce a large amount of product in the short time.
Objective of The Coca-Cola Company
The strategic objective is basically what the company would like to do and achieve in the long-run or over the next few years. The Coca-Cola wants to reach more than 3 billion serving per day in year 2020 and become No. 1 beverage brand on the world. The company also want to increase the profit 50% for the next 8 years.
Always on Time
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To ensure that the strategic objectives reach, the company also will set a tactical objective which is more detail and in the form of short-term. The strategic objective of The Coca-Cola Company is increasing their market by5% and the number of customer by 10% in next year.
Furthermore, The Coca-Cola Company also set management by objective. This objective involves setting activity for each department or Systematic target of employee to measure their performance and quality. The objective that had set up by The Coca-Cola Company is the employees of marketing department to enlarge their market look for new customer to make sure the company can sell 3 billion serving per day in year 2020.
Management or Organisation Structure
The Coca-Cola Company divided their management into 3 main parts which are operation, senior leadership and vice presidents to help the company control the global business. The operations of the company include Eurasia and Africa Group, Europe group, Latin America Group, Pacific Group, Coca-Cola America, Coca-Cola Refreshments and Bottling Investments Group.
The management of The Coca-Cola Company in each company can be divided into eight parts. There are general management, supply chain general management, global marketing, food service management, information technology general management, strategic management, brand management and strategy and business development. This type of management can make the company operate become more stable.
Organisation structure of The Coca-Cola Company is decentralised. The authority is dispersed throughout in the decentralised organisation structure. The Atlanta headquarters let the decentralised organisation structure cutting into half. The Coca-Cola Company also move their local manager nearer to the countries. The decisions making is moves further down in India. The decision making also will be more motivate by using the local information. The decentralised organisation structure will cause some communication problem and different standard of the employee.
The Respective Departments or Divisions and Their Roles or Strategies
There are many respective departments in The Coca-Cola Company to ensure the operational of the company.
The human resource department in The Coca-Cola Company is wanted to make sure the quality of their employee. The company always want the best employees who can make different. The Human Resource department is a service department and provide support to the employee transfers and promotion, training the employee, salary structure and others.
The employees of marketing department of The Coca-Cola Company need to predict what the customers need. They need to seek the new customer and promote the product to the customer. The marketing department should sell the products actively to attract the customers to increase the selling.
Over than that, the business or administrative Service department also know that operational department. This department need to provide support to others department in this company. The data processing, reception, filing, secretarial services and others are providing by this department.
The Coca-Cola Company needs a finance department help to control the billion of money. This department is to help The Coca-Cola Company to know their financial position to determine the type economic activity that can do or cannot do. Employees in this department need to record all the financial transaction and cash flow of the company.
Moreover, The Coca-Cola Company always need new ideas in their business so they set up innovation department. Employee in this department should always make different and searching the next. For instance, the employees in this department always need to crate new things such as a new packaging system, new design for the bottle, new beverages products and new things that haven seen in the world. The Coca-Cola Company also provide New Product or Service Development, Laboratory and others to assist the employee create new things.
All of the businesses will face business environment even though the small and simple or large and complex business. The Coca-Cola Company also will force internal environment, which is a controllable environment such as money, materials, equipment and labour.
First of all, the money or capital of a company is one of the internal environments that mostly affect in a company. There are many resources for the money of the company can come from. For instance, the money can come from the profit, shareholder, investor, business owner and others. A business needs to identify where and when to achieve the financing. There are many usage of the money of the company. A company can use their profits to become the source of finance in the form of budget for their future investment and business activities. For example, The Coca-Cola Company always continues to enlarge their company by using remain profits. The Coca-Cola Company had open two new bottling facilities in central and western China with its bottling partner, COFCO Coca-Cola Beverages Ltd. The company also need to use the money to buy the materials, equipment, machines and pay the rent or salary to the employee.
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Besides, the materials to produce the product also will potentially affect in The Coca-Cola Company. The company use a large amount of material for their production everyday. The types, quantity and quality of the materials that require by The Coca-Cola Company are very important and mainly affect the quality of the products. So, the company has the opportunity to choose the types, amount and quality of the materials they require. The Coca-Cola Company also need to use new materials to produce new or difference types of product to enlarge their marketing and market share.
Equipment is essential and required to assemble the materials and help speed up the process of production in the company. The company cannot produce any products without the equipment or machines. The use of equipment of The Coca-Cola Company is to reduce the uses of human resource and time in the process of production. By the way of illustration, The Coca-Cola Company in Ho Chi Minh, Vietnam use different types of equipment in the flow production systems to produce a standard size of soft drink.
In addition, labour is also essential in The Coca-Cola Company. The human intervention is highly relevant when the decision making of a company. Besides, a company use the human labour to handle the production. The Coca-Cola Company has more than 146,200 of worldwide employees around the world. The productivity of The Coca-Cola Company also will affect by quality of the human labour. Without the labour, this company cannot process any products as well as the company will not have enough products to sale or market around the world. The employees who have a good attitude, moral value and ethics also can improve the productivity and efficiency of the company and the company will become more success. The Coca-Cola Company also need creative employee or employee who can make difference.
MICRO Force of Environment
According to Hill and Jones, "The micro environment of a company consists of elements that directly affect the company such as competitors, customers and suppliers."
The customers are very important and necessary for every business. The higher the demographics, the higher the number of customer The Coca-Cola Company has. The Coca-Cola Company will not survive without any people to their product. The customers of The Coca-Cola Company are in a large amount so that the company allow selling 1.8 billion serving a day. The Coca-Cola Company always provide the best quality and enough quantity of product to sell to their customer at the right price. So, the number of customer and the loyalty of customer will increase. The Coca-Cola Company also has a good relationship with their main customer, McDonald by supplying the products for McDonald everyday.
Additionally, The Coca-Cola Company also needs the suppliers to supply the materials at the right time, quantity and quantity to allow the company to produce billion products everyday. The Coca-Cola Company also need to find reliability supplier and multiple suppliers to maintain the supply of the materials and equipment to ensure their production. So, the relationship between The Coca-Cola Company and the suppliers need to keep healthy to allow the business run smoothly. For example, The Coca-Cola Company has a good relationship with their 275 worldwide bottling partners.
The public is important in the business environment. The Coca-Cola Company always share their information to the public. They also want the public know their brand and products. The company had share their advantages and information in their website, magazine, newspaper and advertisements to promote their brand. The company also show their financial information to public, shareholder and investor.
Over than that, the competitive environment can affect the ability of the business to make profit or increase their customers. The main competitor of The Coca-Cola Company is Pepsi. The competitors always look for the advantages over each other. They will gain and take the ideas and advantages from other product or services to produce better product to gain the money. The Coca-Cola Company also provides various types of beverages to avoid their competitive environment and protect their marketing. Besides, the Innovation Department always create new product to avoid competitive environment.
MARCO Force of Environment
According to Hill and Jones, "The macro environment consists of the broader economic, social, political, legal, demographic and technological setting within which the industry and the business units are placed."
The MARCO environment that can be force and affect the decision making of The Coca-Cola Company is political-legal, economic, social and technological environment force.
The political environment can affect the business by the changes of the government policy of the country. The politic of a country can affect The Coca-Cola Company to open their factories or increase their market share in the country. If the politic of the country is unstable, The Coca-Cola Company will not sell their product and open a company or factory at the country.
Besides, the legal environment means the changes of legislation in a country. The Coca-Cola Company need to comprehend clearly about the employment laws before hiring the employee in other country. The laws and rules to set up companies and factories are different in every country.
There are also many effective types of economical environments forces that can affect The Coca-Cola Company such as taxation, exchanges rates, interest rate and global economic factor. If the global economy is good, the income of people will increase and as well as increase the product selling of The Coca-Cola Company. The exchange rate of the money can always affect the profit or finance of The Coca-Cola Company. Besides, the economical environment can affect by the government. If the taxation of import and export increases therefore the profit of the company will decrease.
Moreover, the social environment such as the population of countries, economic activity, consumer, household, communities behave and beliefs will affect the business environment. The changes of consumer in attitude towards health also will affect the number of people buying soft drink will decrease. The population of working and type of work carried out can affect by the demographics of a country. So, The Coca-Cola Company needs to do a detailed investigation before establish factory in another country. The marketing department also need to investigate the population of countries to forecast the why, where and when the people will buy their product.
The technological change become more quickly nowadays and technological changing can affect in the business environments. The technological environment can show when the rapid pace of change in the production process and communication. The product innovation also can affect the business environment. Improve of the technological environment can help The Coca-Cola company to increase their production so that the company can produce billion of product in one day to deal with the market demand. Employees of The Coca-Cola Company use the internet to share their information and ideas in different countries or places. The CEO also can have a meeting between the presidents of different operation at the same time without travelling from one place to another place. This can helps the decision making become more easier and faster as well as allow to solve the employee allow to solve the problem in shorter time.
On the whole, it is not easily to set up a company like The Cola-Cola Company. A company will set the mission, vision and objective to motive the director, manager and employee to work harder to achieve the goals. The company need to understand the business environment that can force clearly to let the decision making become easier.