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Running head: COCA-COLA QUALITY ANALYSIS 1
COCA-COLA QUALITY ANALYSIS 6
Coca-Cola Quality Analysis
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Coca-Cola is one the most known companies in the US and globally. Even though the company produces various products, its coke drink is its leading beverage. From the beginning, Coca-Cola has recognized that quality differentiates them from its competitors such as PepsiCo. For several years, the approach of Coca-Cola to management of quality was centrally controlled and prescriptive. However, in the mid-1990s, the marketplace realities sparked changes and the company approach to quality management began evolving. The company needed to satisfy local tastes, together with the need of maintaining consistent quality and at the same time introduce new products in the market. This led the company in 1995 to introduce ‘The Coca-Cola Quality System’ (TCCQS) (Ruwangi, 2014). TCCQS has consistently kept pace with industry best practices, quality management methods and new regulations to ensure coke remains a preferable beverage in the market.
What Quality means to Coca-Cola
Coca-Cola SWOT Analysis
Strengths
The organization units have proper business plans that address the organization objectives and promote continual improvement and quality management system effectiveness. This includes demining metrics that allow performance monitoring against objectives. The organization also has quality management system integrity. Coke has a unique taste thus has no substitute in the market (Bhasin, 2017). This enables the company to maintain its quality to retain its loyal customers.
Weaknesses
Stiff competition from PepsiCo in term of quality and lack of enough water to ensure production of quality coke beverage.
Opportunities
The diversification of food and health businesses improves the coca cola offering to its customers thus contributing high revenues to finance quality improvement activities. The availability of various laws such as HACCP that direct the company on quality requirements. Developing nations also present another opportunity. Even though developed nations have high Coca-Cola presence, health awareness has made the developed countries switch to healthy beverages. However, developing nations still have the high consumption of soft drinks and carbonated drinks.
Threats
Coke has a large amount of sugar due to artificial sweeteners. This makes it unsuitable for obese people. Furthermore, health professionals have advised people to avoid beverages because they contain a lot of sugars which increase the risks of developing diseases such as diabetes and obesity. Coca-Cola also has various indirect competitors such as Costa Coffee, Café coffee day and Starbucks which produce energy drinks hence steal away market share.
Coca-Cola Quality Culture
An organization culture is the embodiment of the attitudes, behaviours, guiding principles and core values that collectively contribute to operational efficiency. Culture drives the processes, practices and policies used in producing coke. When the quality culture is attained, every organization stakeholders will infuse quality improvement at all stages of production. Coca-Cola has embraced all quality elements such as customer focus, continuous process improvement, teamwork and collaboration, quality improvement infrastructure and leadership commitment except employee empowerment (Lupo, 2013). Coca-Cola only empowers few employees such as brand ambassadors; however, there’s general lack of empowerment. There is, therefore, need to empower employees to allow motivation, creativity and innovation.
Coca-Cola has implemented procedures to measure and analyze customer satisfaction. Such procedures include proactive methods to capture customer perceptions. Each company unit continually enhances the effectiveness of quality management systems using management review, preventive and corrective actions, data analysis, objectives and metrics, quality statement, audit results and business plan.
Coke Customers
Coke has various customers including individuals of all ages, races and sexes. Coca-Cola beverage sells to diverse populations globally, and its success is unmatched. Today, the society looks to lead healthier and better life, and coca cola has utilized this opportunity to extend its customer base. Coca-Cola employees add to its customer base.
Recommendation to enhance quality
Coca-Cola should join strategic alliances to help in developing the competitive advantage for quality management. An example of an alliance to improve coke quality is the alliance between Coca-Cola Company, customers and its suppliers to help in developing corporative interdependence for quality improvement. Since the company has implemented its own quality control system, it will be difficult to get new employees accustomed to such practices. To overcome this, Coca-Cola needs to conduct new programs to get the new employees to the system. However, new employees can adversely impact on the company quality system. The globalized QMS needs to have the extension to match the conditions of local work to enable workers to meet their expectations. Furthermore, Coca-Cola should undertake necessary actions to prevent the dissatisfaction of employees by implementing tough TCCQS points. This will enable employees to concentrate on continuous quality improvement to meet the demands of customers.
References
Bhasin, H. (2017). SWOT of Coca Cola - SWOT analysis of Coca cola. Marketing91. Retrieved 19 September 2017, from https://www.marketing91.com/swot-coca-cola/
Lupo, L. (2013). Coca-Cola - Quality Assurance & Food Safety. Quality Assurance & Food Safety. Retrieved 19 September 2017, from http://www.qualityassurancemag.com/article/qa0413-coca-cola-company-profile/
Ruwangi, T. (2014). Quality Management System of Coca Cola.