Assignment Week 10

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Week 3 Strategic Management and Strategic Competitiveness Assignment In this

Lynn Williams

Strayer University

BUS499 Business Administration Capstone

Professor Joseph Keller

January 18, 2022

Week 3 Strategic Management and Strategic Competitiveness Assignment

In this assignment, I will explore Coca-Cola Corporation's competitiveness and strategic management. The assignment will involve examining how technological changes and globalization affect the Coca-Cola Company by applying both resource-based and industrial-organizational models to identify ways the company may be able to earn above-average returns. Next, I will discuss the impact of the Coca-Cola Company's vision and mission statement on its overall success.  In my final analysis, I will examine how each stakeholder group impacts the organization.

Globalization

Globalization is global growth, and it has affected nearly every aspect of firms competing against each other in the twenty-first century. These advancements can be attributed to data, goods and services, integrating consumers, and domestic markets. The increase and vicissitudes in globalization have allowed companies to maximize profitability and upsurge their market share, and in order to position themselves successfully in the global marketplace, companies must understand the global economy well (Hitt,2020, 1). Atlanta pharmacist John Stith Pemberton came up with Coca-Cola in 1886 when he combined syrup with carbonated water. Designed and named by Frank Robinson, his bookkeeper, the drink has become a world-renowned soft drink (Myers,2020,2).

Coca-Cola is recognized worldwide as the leading beverage brand. Growing rapidly, this company is also the largest beverage company globally. Since the 1920s, the company has evolved into a global network that brings joy to hundreds of millions of thirsty people every day. Today, the Coca-Cola system operates in more than 200 countries and produces practically 450 beverage brands, enabling millions of people every day to refresh themselves with a nice cold Coke. As Coca-Cola continues to expand its global presence and become more admired, it remains deeply committed to creating the world's most revered trademark (A Global Business, 2011).   

Technology

Technology has made the company's operations more efficient, particularly in sales, production, and distribution. When it comes to using technology to innovate, other businesses could take a page from Coca-Cola's book. The company constantly innovates, rebrands, advertises, and adopts new technologies to enhance its brand and present itself according to the latest worldwide trends and fads. The first freestyle dispensers were introduced by Coca-Cola in late 2010 and early 2011. As opposed to conventional soda fountains, freestyle dispensers allow consumers to create their own beverage mixture by choosing from a wide range of drink options. With its computer-like interface, freestyle dispenser technology provides a greater variety of drinks, records consumers' preferences, and sends that information back to Coca-Cola as market research (K. Ireland, 3). Coca-Cola's innovative management system elevates the brand to the forefront of brand management by focusing on technological advances. There is no doubt that Coca-Cola has gained the trust and recognition of consumers. Throughout their history, they have introduced niche-specific beverages and have met and exceeded the demands of their customers.

Industrial Organization Model

Utilizing the industrial-based model, Coca-Cola will be able to generate above-average returns. In its form, the industrial-based model provides a picture of the business' external environment by illustrating how certain competitive factors affect the business' strategic direction (Hitt, 2020). Considering the public information that is available, Coca-Cola can access its major competitors, Dr. Pepper, Snapple, Nestle, and PepsiCo, based on the industry public information. Using the SEC's Filings & Forms database and analyzing these companies, it can be determined if they pose a threat to our brand's reputation. This information will also allow Coca-Cola to formulate strategies that will maximize above-average returns while maintaining a competitive edge within its external environment. These strategies could include introducing new products to enhance its existing brands, as well as improving competitive advertising tactics to attract larger target markets and audiences. The brand could also introduce new packaging and upscale dispenser devices (Shwetha Gowri Nagaraj, 5). Such tactics would place competitors under pressure to improve their offerings as well.

Resource-Based Model

The resource-based model embraces the internal environment of the business. This model summarizes the business's strengths and weaknesses and identifies how it can earn above-average returns using its internal structures. Coca-Cola is the beverage industry's most recognizable brand. It has a global market presence, superior brand power, and a robust market share, as well as a loyal customer base; however, it has its weaknesses. It contains a lot of sugars and carbohydrates, which are detrimental to an individual's health. According to a large number of health experts, sugar consumption poses a significant health risk to adults and children alike. The Coca-Cola brand is powerful, so its product variants should also be marketed and introduced to the market. These might include sugar-free snacks, beverages, or other products. This will allow Coca-Cola to gain market shares, improve its appeal to the health-conscious, earn above-average returns as well as continue on its path to becoming more sustainable in the future. (Shwetha Gowri Nagaraj, 5).

Vision

Vision statements describe what a company aspires to achieve, which provides meaning and significance to its existence. Coca-Cola's business operations reflect its vision and mission statements; the brand still adheres to its statements after more than 120 years in business. In its vision statement, "Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit" (Coca-Cola,2022,6). Coca-Cola refers to the brand as a catalyst for change and development both inside and outside the beverage industry. During this process, the company transformed its business practices in order to become socially responsible and environmentally sustainable so that it can benefit and impact its employees, as well as the community. While simultaneously enhancing its brand recognition for the future, Coca-Cola leads the industry in innovation, strategic and management competitiveness, design, and marketing excellence, making its brand loved by consumers. In addition to establishing leadership across brands, Coca-Cola develops strong business alliances locally and globally to create opportunities for people and communities. It is these initiatives that contribute to the strength of its brand worldwide (Coca-Cola,2022,6).

Mission

Coca-Cola's mission specifies three essential elements; Refresh the World to Make a Difference and, at the same time, Spread Optimism and Happiness. Throughout the history of Coca-Cola, it has been defined as a beverage to refresh the world. As part of its sustainable business, it aims to refresh the body, mind, and spirit through its products. It is Coca-Cola's commitment to make a difference by working together to create a better future for humanity, communities, and the world as a whole. Through their operations, Coca-Cola promotes optimism and happiness over time. Today, Coca-Cola is recognized as a universal symbol of happiness. As long as the brand continues to exist, it will never cease to offer refreshing products that are refreshing, inspire optimism, and spread happiness to all of its loyal customers. (The Coca-Cola,2022,6).

Stakeholders

A company's stakeholder participation is crucial to its success, and companies rely heavily on them since they facilitate its advancement, achieving their goals and objectives, and ensuring survival and success. Coca-Cola has a number of stakeholders in both its local and global operations. Among them are the company's management team and staff, who are responsible for the organization's daily operations. Employees in the production areas are included. They are also accountable for complying with all rules and regulations when going about their daily activities by prioritizing productivity, safety, and security. Customers, restaurants, and small businesses are also stakeholders. These entities are combined in the community and business world. They are people and companies to whom Coca-Cola has provided good quality products, benefits, and assistance with customers' needs. Additionally, Coca-Cola's suppliers are stakeholders as well, contributing to the company's growth by helping it meet its objectives, succeed in the marketplace, and deliver high-quality products and services (Coca-Cola Company, 7).

Conclusion

In conclusion, strategic management and competitiveness have become universal concepts, where businesses constantly strive to differentiate themselves in the marketplace, and technology is advancing at an accelerating rate. We are living in a challenging economic time, and it is critical for organizations to have strategic management and competitiveness processes in order to successfully compete in a global market.

Sources

1. Michael A. Hitt. 2020. Strategic Management: Concepts and Cases: Competitiveness and Globalization 13th ed. Cengage Learning.

2. Myers, A. (2020). Coca-Cola Company. Salem Press Encyclopedia.

3. The Coca-Cola Company (2012, December 13). A Chronical of Coca-Cola: A Global Business Retrieved, from https://www.coca-colacompany.com/news/the-chronicle-of-coca-cola-a-global-business

4. Kay Ireland. No date. Does Coca-Cola Use Technology to Gain an Advantage? https://smallbusiness.chron.com/cocacola-use-technology-gain-advantage-27339.html.

5. Shwetha Gowri Najaraj. No date. The Coca-Cola Company’s Competitive Strategies. https://medium.com/@shwethagowri/coca-cola-competitive-strategies-6af18bb70d6f.

6. The Coca-Cola Company. Analysis of Coca-Cola Mission, Vision & Values 2022. https://visionarybusinessperson.com/coca-cola/.

7. The Coca-Cola Company. No date. Who Are Your Partners on Sustainability 2022?  https://www.coca-colacompany.com/faqs/who-are-your-partners-on-sustainability.