Business Assignment 2: External and Internal Environments

Strategic Management and Competitiveness Strategy

The world of business is constantly changing. New trends are emerging every day, and it is up to a director to consider the company's influence on these trends and how they would maintain productivity. The implementation of technology by so many business activities and globalization are two of the biggest adjustments that took place in the 21st century (Coca-Cola, 2012). In an attempt to improve their overall efficiency and effectiveness, many businesses have proceeded to embrace technology. In order to increase their client base and productivity, companies have globalized their activities. Therefore, it is wise for every director to place his / her organization strategically to maintain a competitive edge. This paper analyzes how market trends have influenced Coca-Cola's activities, such as globalization and technological shifts.

Globalization

Coca-Cola is perhaps the world's best-known brand. Coca-Cola had a much more global perspective of its activities since its creation. The creators sought to serve the world's most distant customers. Globalization attempts started in the 1920s, and then by 1970, the organization worked under its title in more than 100 nations with more than 20 labels. The organization boosted its revenues by globalizing its activities. The portfolio of the firm has also greatly increased as it has obtained other manufacturing companies of bottling and fountain sodas in the nations where it conducts business. Globalization has, on the downside, expanded the number of Coca-Cola rivals. Therefore, it is the duty of the organization to develop a strategic plan about how to deal with each and every competitor (Coca-Cola, 2012). Globalization has indeed entrusted Coca-Cola with social responsibility and guaranteeing that the social welfare of the communities where it works worldwide is enhanced.

Technology

Technology has also enhanced the productivity of most Coca Cola businesses, particularly in the manufacturing and distribution fields. The company continues to explore opportunities to supplement its human capital in more strategic ways. However, the automation of its manufacturing lines was encountered with much criticism because it resulted in the loss of several jobs. 

With the growth of larger and faster non-trucks, container ships, commercial aircraft, and railways, brand transport became more effective and expense-effective. Coca-Cola was capable of producing and deliver stuff faster and further to segments of the market that were unattainable prior to these advancements in transportation (Coca-Cola, 2012). Additionally, technological advances became the main driver underneath the speed and efficiency with which information was available. Suppliers and warehouses have been able to monitor inventory levels and complete order deliveries more efficiently, leading to lower total operating expenses. Computerization has contributed to costs being cut, and efficiency improvements increased. Computer-controlled, and automatic processing systems improved the output rate and volume of goods. These advances in technology encouraged Coca Cola to compete internationally, selling at competitively priced the very well-known brand of goods around the globe.

Industrial Organization Model

Coca-Cola would have to concentrate on its external environment behind the industrial company model in order to achieve above-average earnings. Coca-Cola must consider their rivals ' activities, for example. PepsiCo and establish straightforward strategies by which above-average yields can be realized. The first phase could be to execute the firm's SWOT study. From the study, Coca-Cola management may recognize gaps like the gap in the marketplace for low sugar, nutrition, and energy drinks (Hitt et al., 2013). Although the firm already has a product that serves the target market, i.e., the Diet Coke, It is supposed to meet the requirements of each customer, and it needs to increase additional products in this section as well as exploit its maximum potential.

Resource-Based Model 

The commodity-based model has a much more inner strategy to over-average returns. According to this plan, Coca-Cola would have to conclude an analysis of its defining procedures, which are the most competitive and negatively affect its revenues. Additional assets must be allocated to highly productive processes and units, and those that are poorly operated should also be disposed of. The organization ought to also improve its human capital and obtain additional unique resources, i.e., patents, which will help it produce above-average profits (Hitt et al., 2013).

Packaging distinction has played an important role in how specific market types can be tailored to the Coca-Cola brand. Functional wrapping has also been utilized to make products ready in numerous shapes and sizes, like plastic and glass containers, aluminum cans, and fountain drinking dispensers. The company believes in various container and bottle sizes and shapes to guarantee simple packaging.

Vision

Coca-Cola's vision revolves around individuals, portfolios, stakeholders, the world, benefits, and profitability. The declaration of vision covers the six reasons that Coca-Cola claims are crucial to their success. This appreciates that perhaps the cornerstone of a profitable business is people (workers), a range of goods, and a broad network of buyers and distributors. The organization also recognizes that a healthy environment and income would guarantee that its performance proceeds to consistently preserve its market success (Coca-Cola, n.d.).

Coca-Cola mutual principles direct their acts and explain how we behave in the world: Management: Bravery to form a brighter future, Teamwork: Flexibility collective creativity, Integrity: Be Real Responsibility: If it were to be, it was up to the Passion: Engaged in mind and heart, Diversity: As varied as our produces, Excellence: Whatever we do, we do welcoming. 

Mission

The goal of Coca Cola would be to "refresh the earth, promote moments of hope and joy, and add value that makes a difference." This declaration of mission represents the ideals which Coca-Cola cherishes. This demonstrates the company's focus on improving the globe's wellbeing but not just increasing profits. The customers appreciate this client-oriented vision and remain to guarantee the success of the company (Coca-Cola, n.d.).

Stakeholders

The firm is mentioned on the New York Stock Exchange as a publicly traded corporation. It also continues to provide contributions to investors that support its various worldwide ventures. Its group of staff and management is accountable for the daily operations, ensuring the success of the company. Distributors of the firm are accountable for the victory of the business by guaranteeing that the manufacturing plants obtain the raw material needed for production (Hitt et al., 2013). Suppliers of the firm are also responsible for delivering goods to the consumer in a timely manner. The various types of investors, therefore, all lead to Coca-Cola's growth.

In conclusion, Managers must choose the competitive edge origin of their company by deciding to operate on the basis of low-cost or highly costly attributes that distinguish their company from rivals. Therefore, targeting perhaps a small or wide audience can help companies recognize their client base better. Depending on these options, businesses may adopt cost management, competitiveness, concentrated value leadership, and oriented approaches for distinction. A further business practice that is potentially useful, best price, happens when companies offer comparatively low prices while also managing to distinguish their products or services on certain essential value-added factors. Although resource-based theory offers a prevailing view of the predictors of firm performance, other interpretations offer insight into the perception of company-specific behaviors in business. Lastly, SWOT assessment is a simple yet powerful strategy to analyze the relationships between internally and externally factors of the organization.

Sources

A Global Business. (2012). The Coca-Cola Company. Retrieved 14 October 2019, from

http://www.coca-colacompany.com/stories/the-chronicle-of-coca-cola-a-global-business

Coca-Cola. (n.d.). Retrieved from https://www.coca-cola.com/ .

Hitt, M., Ireland, R., & Hoskisson, R. (2013). Strategic management (1st ed.). Mason, OH:

South-Western Cengage Learning.