Business Writer
COCA-COLA STRATEGIC ANALYSIS 1
Strategies
The coca cola company is the largest beverage producer in the world operating in over 200 countries. The success of the company depicts effective management and proper layout of the firm’s goals and objectives. The Coca-Cola journey to success has not been easy, and it is even harder to maintain its position at the top with fierce competitors like the Pepsi always on its trail seeking an opportunity to exploit the market. The Coca-Cola Company must, therefore, come up with sound long-term strategies to achieve its long-term objectives and to accommodate the changes in demand and technology.
The Coca-Cola Company main objective is to be globally known as a business that conducts its operation with ethics and responsibility (www.coca-colacompany.com, 2016). Also, it aims at accelerating sustainable growth so at to fit in the future market efficiently. It is this core objective that leads the company in making its decisions; how much to invest in stars, question marks, dogs and cash cows and therefore exploiting the available market opportunities using the products and leap maximally
The second Coca-Cola Company objective is to attain productivity at all the time by effectively managing its people, time and money. Through effective management of its resources, the company will attain effectiveness, thereby achieving its long-term sustainable growth (www.suredividend.com, 2016). Effective utilization of the least available time, reducing operating costs, and maximal utilization of the available labor will always ensure that the company is successful even in the future
The company aims at maximizing profits from its global operations (www.coca-colacompany.com, 2016). However, while maximizing its returns to the shareowners, the Coca-Cola Company aims to do so while being mindful of its overall responsibilities. The Company believes it cannot use unorthodox means to increase its profitability and therefore it cannot use misleading advertisements, compromise on quality and use unfair means to get rid of its competitors. Instead, it must find fair methods always to surpass its competitors and progressively increase its returns.
The Coca-Cola Company can attain its long-term objectives using a series of strategies which are crucial to ensuring its success. To be globally known the company has to target different parts of the globe with products, gaining their popularity and brand names. The bottling partners must always stay close to the customers such as street vendors among others, and they also have to create and use localized strategies laid down in partnership with Coca-Cola. Attaining the objective is also made easier because the company narrows down the competition with other beverage companies because its various brands are the possible competitors (www.vault.com, 2017). For example, the company cannot worry about Fanta brand bringing competition to Coke brand.
Aggressive expansion of productivity calls for an analysis of the cost saving opportunity in line with the business models which the company is operating. Cost cutting and productivity measures will be enabled by efficiency and increased discipline in direct marketing investments, implementation of zero-based budgeting, and restructuring of the company’s global supply chain to minimize costs.
Coca-Cola Company profit maximization objective is only guaranteed by efficiency; in matters of marketing, partnering, internal operations, among others. Exploiting the already set markets and new ones using a variety of the Company’s different products ensures that the company increases a base for its customers. However to reach these new customers, effective adverting is required such that it can reach many people at a low cost (www.coca-colacompany.com, 2016). On the other hand, tailoring products regarding the local market will ensure that the company will maximally benefit from sales
The long-term objectives include:
1. To be globally known as a business that conducts its operation with ethics and responsibility
2. Attain productivity at all the time by effectively managing its people, time and money
3. Maximizing on profits
The long-term strategies include:
1. Target different parts of the globe with products such each of their products thrives in the market they exploit
2. Implementation of zero-based budgeting. A zero-based budgeting will always ensure that that the unnecessary costs are minimized in order to boost the overall returns
3. Restructuring of the company’s global supply chain to minimize costs by ensuring that the products reach the customers with less incurred costs
4. Ensuring efficiency so as to make sure that they have better techniques of reducing costs and consequently increasing their profits.
5. Effective adverting to make sure that the customers are well informed of the products in order to boost the sales
References
www.coca-colacompany.com (Oct 21, 2016) Actions to Drive Stronger Growth, Retrieved from http://www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-announces-actions-to-drive-stronger-growth
www.suredividend.com (May 24, 2016) Coca-Cola’s Growth, Retrieved from www.suredividend.com http://www.suredividend.com/coca-colas-growth-potential/
www.vault.com (January 15, 2017) The Coca-Cola Company Retrieved from http://www.vault.com/company-profiles/food-beverage/the-coca-cola-company/company-overview.aspx
