Global Business Plan

Aspects of Design Thinking: Coca Cola

Jamie Evans

MGT/426

September 2, 2017

Kevin McPhee

Aspects of Design Thinking: Coca Cola

Overview

Design thinking ranks among the most commonly cited phrases in the world of business. It relates to a novel technique of creating discovery for innovation. On top of this, it aids in the promotion of greater performance collaboration. Furthermore, this concept helps in the location of new opportunities and equally helps in the solution of challenges. The five principal components of design thinking comprise the definition of the issue (as well as what the issue entails), the development of alternatives, making a decision regarding the direction to take, choosing the most appropriate solution, and putting the plan into practice. Coca-Cola is one of the most successful organizations that make use of design thinking regularly with the intention of ascertaining problems and coming up with solutions (Armus, 2014). Thus, this paper seeks to expound on the principal five components of design thinking for Coca-Cola, ascertain where the company does well in design thinking, and come up with suggestions with regard to improvements for design thinking and innovation.

Discussion

Applying the Five Key Elements of Design Thinking

The status of Coca-Cola as the number one beverage company in the globe has been acknowledged by many. The company’s rise to the top of the industry has been aided by its belief in great innovation, something that many of its competitors have been unable to match for a long time. Additionally, the organization deals with the sale of soft drinks and has over five hundred beverage brands all through the globe (Coca-Cola Co., 2017). The corporation subscribes to the notion that innovation is vital for the creation of value and in supporting its mission statement. David Butler (Coca-Cola’s VP of Innovation and Entrepreneurship) is tasked with the responsibility of designing and executing a strategic plan with the intention of guiding innovation all through the organization. Butler’s other responsibilities include building the organization’s innovation culture as well as co-creating novel corporate endeavors with a view to driving inorganic growth at an international level.

Coca-Cola has always sought to become an organization that is design-driven (Hisrich & Kearney, 2014). In other words, the corporation’s strategies have been aimed at leveraging the full potential of design all through the business with an eye on driving growth. The acquisition of David Butler has helped Coca-Cola to attain unmatched growth through design thinking. Butler set up a cross-functional, systems-based method across over two hundred nations, which contributed to eighteen successive quarters of progress while at the same time the company managed to save more than half a billion dollars (Coca-Cola Co., 2017). It is little wonder that Butler ended up receiving various accolades for his ingenuity, for instance, “Executive Dream Team” (given by Forbes) and “Master of Design” (given by Fast Company). Butler supervises a group of fifty designers within the organization while another three hundred agencies spread all over the world also work with him to develop the best products that can satisfy customers. Succinctly, Butler’s design thinking skills have enabled Coca-Cola to develop a much-loved brand identity (some of the most noteworthy brands of the organization take in Coke, Fruitopia, Fanta, Powerade, Sprite, Lift, and Dasani water) that continues to attract more and more customers.

Excellence in Design Thinking

Coca-Coca Co. has undoubtedly excelled in design thinking in more ways than one, which has allowed the company to cement its position as one of the most successful companies in the globe today (Dhar et al., 2012). Coca-Cola’s excellence in design thinking is most visible through its unique brand equity. Back in 2011, the organization was given the utmost brand equity award by Interbrand. The company has a massive global presence and an inimitable brand identity, which places it among the most expensive brands with the uppermost brand equity (Coca-Cola Co., 2017). Apart from brand equity, Coca-Cola’s excellence in design thinking can be seen in its fantastic marketing approaches. Unlike its competitors, Coca-Cola always makes an attempt to win individuals’ hearts. Just to cite an instance, while Pepsi’s target appears to be constantly transforming (with young people increasingly targeted), Coca-Cola’s target has continually been individuals of all ages. The use of well-liked celebrities in targeting has also aided Coca-Cola to reach persons of all ages. Additionally, the fact that Butler ended up receiving various accolades for his ingenuity, for instance, “Executive Dream Team” (given by Forbes) and “Master of Design” (given by Fast Company) also goes some way to demonstrate that Coca-Cola has greatly excelled in design thinking.

Areas that Need Improvement

Even though Coca-Cola has attained great success in design thinking, it still needs to improve on certain fronts (Dhar et al., 2012). In essence, despite an organization’s best efforts, attaining perfect outcomes is usually extremely difficult, hence the need to improve on areas that demonstrate flaws. To begin with, product diversification at Coca-Cola remains low. Just to mention an example, while Pepsi has made an ingenuous decision and expanded into the snacks business after coming up with products such as Kurkure and Lays, Coca-Cola continues to lag behind in that area. Indeed, the snacks realm has been a noteworthy revenue driver for Pepsi. As such, in case Coca-Cola decides to diversify into said area, the products can end up bringing extra income for the company. On top of this, the absence of Coca-Cola in health beverages is another area that calls for improvement. These days, issues in obesity continue to be discussed at length in the media. In a few words, obesity ranks among the most pervasive issues that afflict the society. The corporate atmosphere is transforming and individuals are adopting measures to see to it that they do not become obese. One of the main explanations for fat consumption relates to carbonated beverages. Of course, Coca-Cola is known to be the number one producer of carbonated drinks. The implication here is that the intake of carbonated drinks in developed nations may end up plunging, as individuals will go for healthy alternatives. As such, it is important that Coca-Cola improve on said areas in order that it can attain even greater success.

Recommendations to Improve Design Thinking and Innovation

Various ways can be used by Coca-Cola with the intention of improving design thinking and innovation. Nevertheless, two of the most practical strategies to that end include the conduction of research and the enhancement of creativity. First off, it is only through research that an organization can gain a better understanding of the needs of its customers (Hisrich & Kearney, 2014). Research can enable an organization to get accurate feedback from customers regarding what they feel needs to improve. On the other hand, the enhancement of creativity is equally important given that customers are generally pleased with highly creative products and services. As such, Coca-Cola needs to ensure that its offerings are in line with the expectations of customers. In this way, the organization will certainly improve its design thinking and innovation.

References

Armus, S. (2014). Coca-Cola Company. France and the Americas: culture, politics, and history: a multidisciplinary encyclopedia, 1, 273-289.

Coca-Cola Co. (2017). Coca-Cola Journey Homepage. The Coca-Cola Company. Retrieved 2 September 2017, from http://www.coca-colacompany.com/

Dhar, T., Chavas, J. P., Cotterill, R. W., & Gould, B. W. (2012). An Econometric Analysis of Brand‐Level Strategic Pricing Between Coca‐Cola Company and PepsiCo. Journal of Economics & Management Strategy, 14(4), 905-931.

Hisrich, R. D., & Kearney, C. (2014). Managing Innovation and Entrepreneurship.