Strategic Planning Coca Cola
Table of Content
Introduction………………………………………………………………………….……3
Task 1 –
2.2 Review of Position of organisation in its current market…………………..………4
Elements of strategic Management………………………………………………..…..……4
Explain the importance of external factors affecting an organisation …….……..5
1.2 Analyse the needs and expectations of stakeholders of an organisation ….……. 6, 7
Mendelow’s Matrix for Coca-Cola…………………………………………………………8
Stakeholder salience………………………………………………………………………..9
1.3 Analyse the major changes taking place in the external environment that will affect strategy……………………………………………………………………………….…….10
PESTLE Analysis…………………………………………………………………….…….11
The Task Environment………………………………………………………………..……12
Porter 5 Force Analysis………………………………………………………………..…..13
Lifecycle Model………………………………………………………………………..…..13
Barriers to entry………………………………………………………………………..…..14
3.2 Develop a comparative understanding of activity from organisations in the market …………………………………………………………………………..…14, 15
Task 2 –
2.1 Use appropriate tools to analyse the effects of current business plans…….16, 17, 18
2.3 Evaluate the competitive strengths and weaknesses of an organisation’s current business strategies ………………………………………………………………………19
5.1 Compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of an organisation ………………….20, 21
3.1 Use modelling tools to develop strategic options for an organisation……………22
3.3 Create options to form the basis of future organisational strategy……………..23
4.2 Develop criteria for reviewing potential options for a strategy plan ……………24, 25
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of an organisation…………………………26, 27, 28
Conclusion………………………………………………………………………………29
Introduction
‘Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment, through its configuration of resources and competences, with the aim of fulfilling stakeholder expectations.’ (Johnson, Scholles, Whittington 2005 p. 6) Strategic planning is a process through which an organization’s objectives and goals are clarified and courses of action are put in place to achieve these objectives. (Boone and Kurtz 2004) Through strategic planning an organization distinguishes itself from its competitors by taking advantage of its strengths in order to provide better value to customers than its competitors. An organizational strategic plan will dictate the type of marketing programs an organization will use within a specific time frame and how those programs will be implemented. In this assignment I will be a business consultant and I will be working with a world’s leading soft drink manufacturer to develop a strategic organizational plan.
Task 1 – Preparation
2.2 Review of Position of organisation in its current market
Coca Cola is world’s leading soft drink manufacturer and operates in more than 200 countries around the world. It sells a variety of sparkling and still cold drinks. It generates over 50% of its revenue and roughly 80% of its operating profit from outside America. It has strong brand recognition around the world with 115 years of existence. The major aim of the company is to increase the market share value which is achieved by maintaining good relations and connection with its associates. The company also values customer requirements and also focuses on been protective with the company resources and reducing the risks associated with operating the business (Thomson, 2008).
As Coca Cola is one of the world leading companies in soft drink industry, it would need to subdivide to develop and target low-calorie soft drink market. To keep ahead of its competitors Coca Cola uses competitive positioning strategy in the drinks business (Coca-Cola, 2016).
Elements of strategic Management
The strategic management process of Coca Cola is made up of four elements: strategy formulation situation analysis, strategy implementation, and strategy evaluation. These elements are stages that are performed, in order, when developing a new strategic management plan. A Current business like Coca Cola that have already established a strategic management plan will come back to these steps as the need arises, in order to make necessary changes and improvements.
Customer base
Coca Cola’s customer preference is an important aspect of their business. For the company, it means building true partnerships that builds maintainable value and profitable growth for both their business and customers, around the world
Coca Colas customers include:
shops
supermarkets
kiosks
petrol stations
cinemas
Hotels
restaurants and cafés
Explain the importance of external factors affecting an organisation
The external environment of any business consists of two areas: Macro environment and task environment. The macro environment of Coca Cola consists of external and uncontrollable factors which influence the company’s decision making, performance and its strategy. A company like Coca Cola with direct involvement with an organization may be part of the task environment. Samples of task environment areas include competitors, customers, suppliers and labour supply.
The key factor for the success of Coca-Cola is to be aware of developments on the social, political, economic and legal front and adapt to these changes in its strategy. Under micro environment the factors affecting the business operations are market structure, market trends, competition, customers and suppliers (Fahad, 2013). By studying the macro environment of Coca-Cola the managers can identify the possible opportunities and threats for the company which are not in control of the business.
External factors in Coca Cola include:
Political instability (i.e. Brexit)
Climate change (water shortage)
Interest rates ( May not be able to expand)
(Fahad, 2013).
It is important for managers of Coca Cola to understand the business environment because it can affect their company and how it should operate. Coca Cola is not protected from the external environment. Things like political decisions, for example, can have a huge impact on a company by changing tax laws or regulatory regimes. Another example, the managers must be conscious of things like new rivals entering their market. Obviously, managers would need to be aware of these sorts of changes.
1.2 Analyse the needs and expectations of stakeholders of an organisation
Generally people related to the business are called the stakeholders. Stakeholders of Coca-Cola Company include internal factors such as employees and managers and external factors which include customers, suppliers and government. All these stakeholders have needs and expectations from Coca-Cola and consider that the company has to meet all their needs and expectations.
Stakeholder mapping of Coca Cola in 4 steps:
Define stakeholders
2. Analyse stakeholders by influence and impact
3. Plan / Manage stakeholder communications
4. Participate with stakeholders
Customers
Customers are regarded as primary stakeholders of the company and they remain at the top of strategic planning in Coca-Cola Ireland. The company seeks to attain satisfaction of its customers by providing quality products. Though, growing health concerns among consumers about soft drinks presents a greater challenge to Coca-Cola in its stakeholder management (Coca-Cola, 2016).
Employees
Employees are one of the most important internal stakeholders of Coca-Cola Company, because, employees will help Coca-Cola in operational existence. It seeks to address satisfaction, growth and development and welfare of its employees as its strategic objective. Coca-Cola Ireland considers its employees as its integral part in its markets success thus it strives to provide a corporate culture. (Coca-Cola, 2016)
Public
Coca-Cola Ireland has also high value for the public in which it operates. The company in the past has played substantial contribution in providing employment directly and indirectly and it also fully committed to enhance awareness on environmental challenge, through community awareness initiative and wildlife preservation (Coca-Cola, 2016).
Coca-Cola Ireland has defined its stakeholder into four categories, which are analysed below though Mendelows Matrix: The matrix is normally completed with consideration to the stakeholder impact of a particular strategy. Generally people related to the business are called the stakeholders. Stakeholders of Coca-Cola Company include internal factors such as employees and managers and external factors which include customers, suppliers and government. All these stakeholders have needs and expectation from Coca-Cola and consider that the company has to meet all their needs and expectations.
The stakeholder analysis through Mendelow’s matrix, Coca-Cola reveals that the acceptability of strategies to key players (segment D) is highly critical for the company. Likewise Coca-Cola should address the stakeholder’s expectations in segment B through interactive communication, for instance, to community groups. These stakeholders are important “partners’ in influencing the attitudes and buying behaviours of stronger powerful stakeholders (end-users): for example, public rationing and lobbying to counter health risk campaign against soft drinks.
Mendelow’s Matrix for Coca-Cola
The reason is to evaluate:
if stakeholder resistance is likely to hinder the success of the strategy
What policies may make it easier to accept the strategy?
The following strategies may be relevant to each quadrant:
Box A – Minimum effort
Their lack of interest and power makes them open to influence.
Box B – Keep informed
These stakeholders are interested in the strategy but do not have the power to do anything. Management needs to encourage opponents to the strategy that the plans are reasonable; or else they will try to gain power by joining with parties in boxes C and D.
Box C – Keep satisfied
The solution here is to keep these stakeholders happy to avoid them gaining interest and moving to box D. This could consist of reassuring them of the results of the strategy well in advance.
Box D – Key players
These stakeholders are the most important. They could stop management plans if not happy. Management, therefore, needs to communicate plans to them and then discuss implementation issues. (Foster, 2012).
Stakeholder salience
Coca Cola managers give priority to competing stakeholder claims determined by:
Power: Is the ability project stakeholders have to influence the outcome of an organization, a project or deliverables.
Legitimacy: Is the authority, level of involvement project stakeholders have on a project.
Urgency: This is the time that is expected by project stakeholders for responses to their expectations.
This three-dimensional view of project stakeholder’s needs and expectations from a project can help managers narrow down the critical stakeholders.
(Foster, 2012).
1.3 Analyse the major changes taking place in the external environment that will affect strategy
A PESTEL analysis is a framework or tool used by Coca Cola to analyse and monitor the macro-environmental (external marketing environment) factors that have an impact on an organisation.
PESTLE Analysis
Political Factors
There is currently political stability in Ireland and Coca-Cola’s business is thriving. However, recent results from the referendum and Brexit are likely to have long term political repercussions which can affect future business of Coca-Cola in the country.
Economic Factors
High rates of inflation are likely to raise the price of Coca-Cola and as a result of this price increase utilisation may fall. The Irish economy is in recovery from financial crisis, yet disposable income levels are low and unemployment levels are still high, which are affecting consumer spending. These factors can have negative affect on short term demand of Coca-Cola (Sicilia, Palazon, 2008).
Though, the economic struggle in the country has not affected the soft drinks industry as of yet but Coca-Cola has to remain vigilant of economic growth, especially when it comes to investing in business development (Amienyo et al., 2013).
Social Factors
The majority of the population in Ireland are middle-aged and there are only 12% of the population under 25 years, this age structure of Irish society clearly indicates a low level market growth in the future, as people towards middle ages become more dietary conscious and their social life style also affects their consumption of non-alcoholic drinks. Consumer drinking habits are more and more influenced by health awareness. Doctors are regularly identifying the health care risk associated with drinking too many soft drinks like Coca-Cola (Amienyo et al., 2013).
Technological Factors
The present market environment in the 21st century is technology driven; technology has restructured every aspect of businesses from production to customer relations. Coca-Cola in the past has managed very well to adapt to the technological changes. However, it can further develop modern production technology in its Research and Development (R & D) to come up with more advanced products (Karnani, 2013).
Legal Factors
Overall, legal factors in the future are less likely to impact Coca-Cola. Developments in the contract law and employment law also require the company to review and align its objectives to its suppliers and human resource management to conduit confidentially and long term retention. Coca Cola holds on to all rights connected to their business, including past and future products developed with a patented process. (Karnani, 2013).
Environmental Factors
Coca Cola is affected by the accessibility of water. Water is essential for the soft drink industry. However should something happen, like climate change, the company may be in difficulty. This affects their competitor, Pepsi also. But since Coca Cola’s products are primarily soft drinks, with a water accessibility issue, the company will suffer losses. Coca Cola has to adhere to environmental laws as they manufacture their products.
(Karnani,2013).
The Task Environment
The first thing the manager in Coca Cola needs to do is to define what the task environment of his/her company is. When he/she thinks about all of the outside forces that can affect their company, they make a list of as many factors as they can:
Customers
Suppliers
Competition from other companies
The labour force
Government regulations
Porter 5 Force Analysis
Competition in the drinks business can be described as a duopoly with Pepsi and Coca-Cola. The Porter’s five forces model is used to examine Coca Cola’s competitors. By using the simple framework, future investors can get an idea of what factors could affect the company’s profitability. (Foster, 2012).
(Foster, 2012)
The Bargaining Power of Suppliers
The majority of ingredients in Coca-Cola such as sugar, caffeine colour and packaging are supplied to Coca-Cola by external suppliers, which makes the company reliant on its suppliers to some extent.
The Bargaining Power of Buyers
Buyer’s bargaining power in the soft-drink industry is very high and this is critical for Coca-Cola Ireland. Though, the company does not sell its products to customers directly, various distribution networks delivers its products to end users, yet, market demand is largely determined by the end user, hence Coca-Cola must remain very cognisant of buyer’s buying behaviour, retail pricing and competitive profit margins of market intermediaries.
(Karnani,2013). Threat of Substitute
The threats to Coca-Cola in Irish market from substitute products is very high since a wide range of soft drinks in different flavours, prices and presentation are available. These include coffee, tea, flavoured energy drinks. Coca-Cola however, cannot solely rely on its conventional market leadership and its must increase its product lines, for example Vanilla Coca-Cola, Diet Coca-Cola, Cherry Cola-Cola, caffeine-free etc. (Karnani, 2013).
Threat of entrants
New entrants to the drinks industry are a possibility. Even though Coca-Cola and its competitors do have special licensing deals, including having their drinks sold in fast food outlets, and different distribution deals, another company could gain a position if it hit into the trends at the right time.
Lifecycle Model
The product life cycle is an important model for Coca Cola in marketing. It describes the stages their products go through from when it was first brought onto the market until it finally is removed from production. Not all products reach this final stage. Some continue to grow and others rise and fall.
(Karnani, 2013)
Barriers to entry
Barriers to entry are the presence of high start-up costs that prevent new competitors from easily entering an industry or area of business. Barriers to entry will benefit Coca Cola because they are already in manufacturing and well established. Example of barriers to entry includes:
Tax benefits to existing firms
Strong brand identity
Customer loyalty
3.2 Develop a comparative understanding of activity from organisations in the market
Corporate Level Strategy of Coca Cola
Growth Strategies:
Coca Cola invests a large amount of money into its business each year to develop projects. This company is world’s leading soft drink manufacturer and operates in more than 200 countries around the world, these just shows that they do focus on growth.
Stability Strategies:
Occasionally Coca Cola have to delay its growth strategy to see the position they’re at in the market. The company applies this strategy when it knows that growth strategies are not possible.
GE McKinsey matrix
The GE McKinsey matrix is a product portfolio analysis template. When Coca Cola have a tricky product portfolio, then it is difficult for them to make decisions. The reason for this is each product will have its own demands and needs. But the manager will have limited resources in the company. Therefore, what he has to do is have to look at is to make sure that the firm grows at the best possible pace. For this, he will have to invest money into some products, no change in other products, and cut other products which are not selling well. This decision making, on products, is done by the GE Mckinsey matrix.
(Aaker, Joachimsthaler, 2012).
Coca-Cola Ansof Matrix Analysis
The main objective of Coca Cola is growth, be it opening a new product into the market or an established product seeking to further increase profitability. But how does this company decide upon the best strategy for growth? The Ansoff Matrix management answers this question by assessing the level of risk – considering whether to seek growth through existing or new products in existing or new markets. To reveal the vigour and legitimacy of Ansoff’s Matrix, it has been applied to Coca-Cola, the most well-known trade name in the world and a company today operating in over 200 countries.
Coca-Cola BCG matrix
Coca-Cola is a large scale company that has been working in the drinks business for more than a century, supplying different products to 200 countries. The Boston Consulting Group Matrix (BCG Matrix) can be used to analyse the different products being sold by the company in terms of their market share, sales generated on an annual basis and the potential for growth. The BCG Matrix for Coca-Cola is as follows:
Cash Cows
Stars
Question marks
Dogs
The BCG matric analysis for Coca-Cola Ireland reveals that, regular Coca-Cola is the cash cow in Irish market; hence it’s evident that future growth of regular Coca-Cola will be very slow. Though, company will have high market share through this product and company can reduce significance investment on this product.
Diet Coke in Irish market appears as its leading product with high growth potential and high market share though it will take heavy investment as well on marketing and product development. Some of the other flavour product of Coca-Cola like Vanilla, Diet, and Cherry are dogs in Irish market where company can expect a low growth and low market share. Hence it’s high time that company must diversify its product range to substitute these dogs and add new stars (Aaker, Joachimsthaler, 2012).
Task 2 –
2.1 Use appropriate tools to analyse the effects of current business plans
Benchmarking of Coca-Cola
Benchmarking is used in the Coca Cola Company to create new standards as well as improving the performance of the company.
Revenue |
Net Income |
Total Assets |
Total Liabilities |
|
Coca-Cola |
35, 1190 |
11809.0 |
48671.0 |
23325.0 |
Dr Pepper |
1803.1 |
60.0 |
1529 |
995.0 |
Pepsi |
5636.0 |
529 |
8860.1 |
6410.2 |
(Coca Cola Ireland, 2015)
Implications of VCA and Benchmarking for Coca-Cola
The above comparative benchmarking of Coca-Cola clearly reveals that the company has a leading edge in the market in terms of revenue net income and total assets. Coca-Cola is a market leader with extremely strong brand portfolio but it has massive investment in brand promotion that affects in Return on Equity (ROE). This completive strength and emerging gaps in Irish market positions the company to explore more diversified strategic option not only to retain its market leadership but future growth to ensure its competitive ROE.
Types of Benchmarking
There are four main types of benchmarking: internal, competitive, functional, and generic.
Internal benchmarking is a comparison of a business process to a similar process inside the organization.
Generic benchmarking broadly conceptualizes unrelated business processes or functions that can be practiced in the same or similar ways regardless of the industry.
Competitive benchmarking is a direct contrast between competitors for a product, service, process, or method.
Functional benchmarking is a comparison to similar or identical practices within the same or similar functions outside the immediate industry.
Organisational Knowledge Analysis
Knowledge can be defined in several different ways. Demarest (1997 pp. 374 – 384), for example, defines it as ‘the actionable information embodied in the set of work practices, theories-in-action, skills, equipment, processes and heuristics of the firm’s employees’
Knowledge Analysis is an approach to analyzing issues in Coca Cola, problems or actions through a knowledge outlook in order to understand them. Sometimes having new understanding is enough. The company can improve this by:
Creating better solutions or resolutions to problems
Improving products and services
making whatever changes the situation calls for
MacDonald J. (1999)
Value Chain Analysis (VCA) of Coca-Cola Ireland
Value-chain analysis in Coca Cola is an analytical framework that helps in identifying business activities that can create value and competitive advantage to the business. The figure below demonstrates the essence of value chain analysis.
Inbound logistics.
Coca Cola Company depends on water as it the main ingredient as it the main ingredient in all their products, and in the summertime occasionally faces significant shortages so they face challenges in accessing this particular raw material.
Outbound logistics
Coca Cola Company is the world’s largest beverage distribution company selling its products in over 200 countries.
Marketing and sales
Coca Cola apply marketing strategy using advertising, sales promotions, events and experiences and public relations elements of the marketing mix in a combined manner. “Sales of beverages belonging to Coca-Cola portfolio amounted to 28.6 billion, 28.2 billion and 27.7 billion unit cases in 2014, 2013 and 2012”
http://research-methodology.net
Cultural Analysis
As Coca Cola has many businesses’ all over the world they are well involved with such things as language, beliefs, values, customs, laws, cuisine, etc.
The winning culture describes behaviors and attitude that will be required of Coca Cola’s managers to make company 2020 Vision a reality. Live Brand Values serve as a compass for actions and describe how behave in the world. (Bowman and Okuda, 1985).
The Cultural Web
Culture is made up of a set of shared philosophies, beliefs, ideologies, attitudes, values, expectations, assumptions and practices: each of these structures is intertwined, together forming a web, or ‘paradigm’ that is symbiotic and self-supporting. This web can hinder change, but it can also be harnessed to enable it.
Johnson and Scholes (2008) model identifies six interlinking processes that determine how culture is established and reinforced.
Johnson and Scholes (2008)
2.3 Evaluate the competitive strengths and weaknesses of an organisation’s current business strategies
A SWOT analysis of Coca-Cola makes known its main strength as the most valuable brand in the world, while its main weakness is that most of its products are carbonated drinks. The increase in the number of people that are buying and drinking bottled water is a major opportunity for Coca-Cola, but water shortage is a significant threat. SWOT analysis is one of the most reliable and highly used analytical tools that provide a critical environment scan, with explicit identification of various strengths and weaknesses of company at internal level and opportunities and threats in the external environment (Thomas, 2009).
Competitive Strengths and Weaknesses of Coca-Cola
SWOT Analysis of Coca-Cola Ireland
|
Strengths Strong Brand Equity High Existing Customer Base High Brand Loyalty Wide Product Range |
Weaknesses Shrinking domestic market Health care risk Workforce continuity Lack of Innovation Low product awareness of many drinks Low brand association of many drinks |
|
Opportunities Changing consumer preference present opportunity to market other drinks Reduce cost by decreasing TV advertisement |
Threats Negative publicity Changing drinking habits Growing competition |
(Greenfield, 2016)
The Above SWOT analysis clearly reflects that Coca-Cola has reached its matured stage of its product life cycle. Growing health consciousness, negative image and health risk will reduce the future growth potential of popular drinks of Coca-Cola Ireland. However, there are high opportunities for future growth by product diversification.
5.1 Compare core organisational values (ethical, cultural, environmental, social and business) with the current business objectives of an organisation
Core values are what support the vision, shape the culture and reflect what Coca Cola values. They are the principle of the company’s identity, principles, beliefs or philosophy of values. Coca Cola focus generally on the technical competencies. Establishing strong core values provides both internal and external advantages to the company:
Core values help Coca Cola in the decision-making processes. For example, if one of their core values is to stand behind the quality of your products, any products not reaching the satisfactory standard are automatically eliminated.
Core values educate potential customers about what the company is about and clarify the identity of the company.
Core values are important recruiting and retention tools. When individuals are seeking employment they research on the identities of the company they are applying for and considering whether or not these companies hold the values that the job seekers consider as important.
Coca Cola’s values serve as a scope for their actions and refer to how they behave in the world.
Leadership: To find the courage to form an improved future
Collaboration: Controlled shared intelligence
Reliability: Be real
Responsibility: If it is to be, it’s up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What the company do, they do well
Safety: – ensuring the health and safety of employees and going beyond the legal requirements to provide an accident-free workplace.
Devero, AJ. (2007)
Objectives of Coca Cola
Coca Cola’s objectives are the results they hope to achieve and maintain as they run and grow their business. As a manager, you are concerned with every aspect of the business and need to have clear goals in mind for the company. Having a comprehensive list of business objectives creates the guidelines that become the foundation for any business planning.
The main objectives for the company are to be well known globally as a business that conducts business responsibility and ethically and to accelerate sustainable growth to operate in tomorrow’s world. www.coca-cola.ie
3.1 Use modelling tools to develop strategic options for an organisation
Strategy Clock
(Grant, 2016)
The ‘strategy clock’ above speaks to various positions in a market where customers or potential customers have diverse “prerequisite” regarding value for cash. Coca-Cola Ireland has accordingly taken the strategy choice of crossover, in which case it keeps up its price however tries to separate itself from competitors. The firm has had a blend of promoting, valuing, product advancement, sales promotion programs, in production procedures expanded proficiency, the presentation of distributing and apportioning gear, new bundling, and trademark and brand improvement and assurance (Grant, 2016).
Porter’s generic strategies
Michael Porter has developed the three generic strategies:
cost leadership: seeking to become the lowest cost producer in the industry
focus strategy: targeting activities to a select segment
differentiation strategy: the company tries to position its product in the manner that it stands out to be different from the products of the same category
(Porter, 2008)
Competitive advantage
Coke was the leading soft drink in 1896 just as it is today. It seems unlikely that customers will ever lose their taste for it. The Coca–Cola brand and the product are durable competitive advantages that will enable the company to earn economic profits for shareholders for many years to come.
3.3 Create options to form the basis of future organisational strategy
In business strategy, strategic options are evaluated against three key success criteria:
Suitability (would it work?)
Feasibility (can it be made to work?)
Acceptability (will they work it?)
Suitability
The main idea to think through is whether the strategy would address the key strategic issues pointed out by Coca Cola’s strategic position.
Does it make economic sense?
Would it be suitable in terms of environment and capabilities?
Feasibility
Feasibility studies can be used in different ways but mainly focus on proposed business projects.
Acceptability
Will the stakeholders in Coca Cola accept the strategy?
Meet the stakeholder expectations?
Levels of risk and likely return acceptable? (Grant, 2016)
Swot Matrix of Coca cola
4.2 Develop criteria for reviewing potential options for a strategy plan
Strategy Evaluation is as important as strategy formulation because it illustrates the effectiveness and efficiency of the comprehensive plans in achieving the chosen results. The managers of Coca Cola can also judge the suitability of the current strategy in today’s world with socio-economic, political and technological innovations. Strategic Evaluation is the final phase of strategic management.
Coca Cola need to develop a set of assessment criteria for reviewing their strategic plan that provide clear quantitative and qualitative indicators. These tools might include:
Fixing benchmark of performance
Key performance indicators (KPI).
The process of Strategy Evaluation consists of following steps-
Fixing benchmark of performance Coca Cola can use both quantitative and qualitative criteria for complete assessment of performance. Quantitative criteria include determination of net profit, ROI, earning per share, cost of production, rate of employee turnover etc. The Qualitative factors are subjective evaluation of factors such as, skills and competencies, risk taking potential, flexibility.
Key performance indicators (KPI). This standard performance within Coca Cola is a bench mark with which the actual performance is to be compared. The reporting and communication system help in measuring the performance. The measurement must be done at right time else evaluation will not meet its purpose.
Balanced Scorecard coca Cola
The balanced scorecard allows the managers of Coca Cola to look at the business from four main outlooks:
Financial
Customer
Internal business processes
Learning and Growth
(Grant, 2016)
4.1 Propose a suitable structure for a strategy plan that ensures appropriate participation from all stakeholders of an organisation
Structure of the Strategic Plan of Coca Cola
Mission:
To keep the world refreshed with our drinks
To create value and make a difference.
Vision statement:
Be a highly effective, lean and fast-moving organisation
Values and principles:
The nerve to improve the business in the future
Be real
If it is to be, it’s up to me
Dedicated in heart and mind
As inclusive as our brands
What Coca Cola do, they do well
SWOT analysis
Strengths: Strong Brand Equity
Weaknesses: Low product awareness of many drinks
Opportunities: Growth in beverage consumption
Threats: Changing drinking habits
Competitive Strategic
Coke is the leading soft drink in the world
Strategy
The Coca–Cola Company is the world’s largest beverage company and is the leading producer and vendor of soft drinks. The Company markets four of the world’s top five soft drinks brands: Coca–Cola, Diet Coke, Fanta and Sprite.
Short-term goals/priorities/initiatives
People: Be a great place to work
The company: Be the world’s leading provider of branded beverages
Manage people, time and money
Action items/plans
Target disciplined brand and growth investments
Drive revenue and profit growth with clear portfolio roles across their markets
Coke intends to refranchise, or sell off, nearly all of its North American bottling operations by 2020
Coca-Cola wants to be seen by the markets as in touch with the urgency of its situation and sensitive to the shelf life of investors.
Scorecard
The Coca Cola Company is a company that manufactures its products and then it markets and distributes the products to its customers
This allows the managers of the company to look at the business from the view of the customers
Execution plan
The major elements of an execution plan are:
Scope definition
Goal statements
Quality and technical specifications
Supply distribution
Project development
Structural considerations www.coca-cola.ie
The strategy diamond allows the manager summarize the characteristics of the Coca Cola business and corporate strategy in terms of five facets—arenas, differentiators, vehicles, staging and pacing, and economic logic.
All five facets are linked. When the five elements of strategy are aligned and mutually reinforcing, the firm is generally in a position to perform well.
The strategy diamond helps Coca Cola develop international strategy, using three related questions:
Do we need to expand outside our home country?
If so, where should we expand?
How should we expand?
Donald C. Hambrick and James W. Fredrickson (2001)
Conclusion
The Coca-Cola Company has built internal and external structures to support the delivery of its business goals. The regional structure is the best way of supporting this growth, allowing attention to local requirements while at the same time building on a clear strategic direction from the centre.
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