Evaluation of Business Operations
keafemaral76
Markl_S_M1A3.docxRunning head: Coca-Cola Company 1
Coca-Cola Company 9
Sean Markl
Organizational Assessment
Argosy University
Operations Management
September 11, 2018
Introduction
Coca-Cola Company is one of the leading beverage multinational company in the world. The company headquarters is located in Atlanta, Georgia, United States and it was founded in the year 1892 by Asa Griggs Candler. The company manufacture and market nonalcoholic beverages and syrups with the motto “taste the feeling” (www.coca-cola.co.uk). Coca-Cola Company products are Powerade, Dasani, sprite, Citra, Coca-Cola vanilla, Ciel, Georgia, fair life, thums up, oasis, valpre, diet coke plus, Amita, mineral water, minute maid among others (www.coca-cola.co.uk)
Mission statement
Our mission is:
· To refresh the world in mind, body, and spirit
· To inspire moments of optimism and happiness through our brands and actions
· To create value and make a difference (www.coca-cola.co.uk).
Vision statement
To achieve our mission, we have developed a set of goals, which we will work with our bottlers to deliver:
People: Inspiring each other to be the best we can be by providing a great place to work
Portfolio: Offering the world a portfolio of drinks brands that anticipate and satisfy people's desires and needs
Partners: Nurturing a winning network of partners and building mutual loyalty
Planet: Being a responsible global citizen that makes a difference by helping to build and support sustainable communities
Profit: Maximizing long-term return to shareholders, while being mindful of our overall responsibilities
Productivity: Being a highly effective, lean and fast-moving organization (www.coca-cola.co.uk).
Goals
· Inspiring each other to be the best we can be by providing a great place to work
· Offering the world, a portfolio of drinks brands that anticipate and satisfy people's desires and needs
· Nurturing a winning network of partners and building mutual loyalty
· Being a responsible global citizen that makes a difference by helping to build and support sustainable communities
· Maximizing long-term return to shareholders, while being mindful of our overall responsibilities
· Being a highly effective, lean and fast-moving organization.
Objectives
The objective of the company is to maximize their profits and maintain a long-term sustainable growth within the beverage industry.
Ethical practices
Coca-Cola Company is accused of channel stuffing. This is usually the act of selling empty packed bottles to retailers. Channel stuffing results from an increase in the market. Coca-Cola is also accused of mixing pesticides in the water to clear contaminants (Bhasin, 2018). Treating water using pesticide may give rise to another health hazard. Coca-Cola Company also uses plenty of water as raw material leading water scarcity in an area where the company locates factories.
Management functions
Planning. Coca-Cola Company has strategic planning where all the top managers participate in the formulation of both long-term and short-term plans (www.coca-cola.co.uk). Engagement of senior managers in planning helps the company to fit in with the changing external environment. Planning also involves setting goals for all employees at all levels then evaluating them periodically.
Organizing. Coca-Cola Company is decentralized geographically and regionally. In different regions, there are various functional departments like sales, production, and quality control among others. This enhances the specialization of employees in different departments which improves productivity.
Leading. Coca-Cola Company has different leaders in their different global regions, countries and local plants in the country. Different functional departments have professional leaders who help in decision making and problem-solving processes.
Controlling. Coca-Cola Company carries employee’s evaluations in different regions annually. Employees who met their targets are usually appraised for their excellent performance. Appraisals motivate the rest of employees to work hard in their respective departments helping the company achieve its goals.
SWOT analysis of Coca-Cola Company
The strength of Coca-Cola Company
Massive valuation of the company. Coca-Cola Company is valued at around 80 billion dollars. The company has many factories with an expensive brand which help them compete favorably in the market (Bhasin, 2018).
Enormous market share. Many people love Coca-Cola brands like Coke, Fanta, and sprite. The love of their product makes the company popular, unlike their competitors.
Well, calculated market strategies. Coca-Cola Company carries out many promotions using celebrities like Aishwarya Rai attracting a large number of customers.
Win of customer loyalty. Coke and Fanta is a trusted Coca-Cola product due to its test and staying long on the market. This maintains the loyalty of customers to the company’s products (Bhasin, 2018).
Weaknesses of Coca-Cola Company
Less diversification in products. Beverages are the main Coca-Cola product other competitors like Pepsi have diversified product; beverage and snacks.
Obesity-related beverages. Carbonated Coca-Cola drinks contain a lot of sugar which is the mother of all obesity. Developed countries are now avoiding the Coca-Cola drinks.
Opportunities for Coca-Cola Company
Produce packaged drinking water. Many people are now using treated drinking water due to the outbreak of water-related diseases. Since water is the primary raw material, the company should utilize some of water in the manufacture of the packaged water.
Promote product with less market share. Coca-Cola has products with less market share like Powerade. The company should develop marketing strategies for the products to increase the company’s sale.
Diversify to Health free products. Coca-Cola should add brands with health benefits to its product mix to increase the market sales (Bhasin, 2018).
Threats of Coca-Cola Company.
The raw material is scarce (water). There is water problem in some countries where the Coca-Cola Company set their factories. Water scarcity gives such branches a nightmare (Essays, UK. 2015).
The emergence of indirect competitors. Alternative products like Tropicana which are healthy for humans have entered the market. Many people prefer such health products. (Essays, UK. 2015).
Product portfolio (BCG matrix)
Stars. These are products with significant market share, and there is a chance of growth. Star products of Coca-Cola Company varies from one continent to another. Like in the UK and USA, Dasani is the star while Kinley is the star in Europe and Asia.
Cash cow. Cash cows Are product with significant cash flow but the minimum investment. They have a considerable market share. Coke is the main cash cow in the world.
Question mark. Question marks are products with high market growth rate but have a low market share. Sprite, minute maid, diet coke, mineral water, and Fanta are question marks in Coca-Cola Company.
Internal and external environments
Internal environment
Organization structure. Coca-Cola Company is managed by the head president and four overall functional managers; marketing, quality assurance, manufacturing, and finance. A president and a vice president lead each of the five continents. Different managers manage different continents functional departments like manufacturing, finance, and marketing.
Relationships and interactions In Coca-Cola Company, management and employees have line relationship. Employees working in the departments like manufacturing department have lateral relationship. Employees working in the same department interact freely and end up gaining specialization in their respective departments.
External environment
Economical. Coca-Cola Company was located initially in Atlanta, Georgia, and the United States. The countries are economically stable with high purchasing power. Stable economy supported the company with financial resources.
Political. Many political policies where the company is located are favorable. Coca-Cola Company produces the nonalcoholic product which is legal and the company support many activities in such countries. For instance, there is political stability in the USA.
Demographic factors. Coca-Cola companies in the UK have high market share due to the economic stability of people unlike in Africa where purchasing power is low. Demographic factors also influence product distributions. For instance. Dasani sold in the UK but not in Africa.
Competitors. Pepsi Company is the leading competitors in the market. Pepsi Company has a well-diversified product brand, but Coca-Cola competes favorably through strategic marketing.
References
Essays, UK. (2015). The Coca-Cola Company Struggles with Ethical Crises. Retrieved on 23rd March, 2018from
https://www.ukessays.com/essays/business/the-coca-cola-company-struggles-with-ethical-crises-business-essay.php
Bhasin, H., (2018). SWOT Analysis of Coca-Cola. Retrieved on 25th may, 2018 from
https://www.marketing91.com/swot-coca-cola/
Homepage | Journey | Coca-Cola Great Britain. Retrieved from
https://www.coca-cola.co.uk/
