Week 3 Strategic Management and Competitive Assignments<\/p>\n
Andrea Roberts <\/p>\n
Strayer University<\/p>\n
BUS499 Business Administration Capstone<\/p>\n
Professor Brian Grizzell<\/p>\n
July 25, 2021<\/p>\n
Week 3 Strategic Management and Competitive Assignment<\/p>\n
The trade market has grown increasingly competitive due to technology and globalization. Coca-cola is no exception. The company continues to expand to several countries around the globe marketing its products and advancing its mission. Additionally, it also uses highly advanced updated technology for marketing and management. The paper examines the impact of technology and globalization on the company. It investigates the companies returns on capital and how the company’s mission and vision have affected the success of the organization.<\/p>\n
Globalization<\/p>\n
The idea of globalization has been very vital for the Coca-Cola company. Firstly, it has facilitated the expansion of the company into several countries in different parts of the world. The expansion has increased the customer base of the company. The large customer base facilitates optimum sales, making the company earn additional profits. Additionally, the large markets have also facilitated large-scale production of the products making the company benefit from economies of large-scale production (Concha Rold\u00e1n, 2018). As a result of the production economies, the cost of production has been reduced. The reduction in the cost of production enables the company to sell its products at low prices giving the company a competitive advantage in the market.<\/p>\n
The concept of globalization has also affected the employees and labor policies of the company. For example, the employees work in different countries learning different cultures and mastering the art of cultural diversification. The skill enables the employees to manage each other irrespective of their cultural differences. This has promoted the company’s reputation globally as a corporation that promotes global integration. A good reputation helps the company to maintain the trust of its customers and gain customer loyalty. Customer loyalty enhances sales and maximizes profit.<\/p>\n
Technology<\/p>\n
Technology is a crucial factor that enhances the operations of a business, companies such as Coca-Cola uses technology to develop novice products in the market. As the beverage industry is dynamic, Coca-Cola had to come up with a new product by incorporating the feedback from the customers. In Coca-Cola`s quest to develop a healthy product, Coca-Cola used machine language to identify the flavors that customers loved. From the data collected using machine language approaches, Coca-Cola settled on the instigation of drinks with cherry sprite flavor. This is a classic example of the use of technology to enhance the operations of a company while gaining an edge over competitors.<\/p>\n
Coca-Cola uses technology in placing and personalizing products. To achieve this, Coca-Cola uses information from vending machines such as consumer behavior, food traffic, and buying demeanor of the customers. With this information, Coca-Cola utilizes machine language to know what products should be sent to a specific location. Additionally, with this information, Coca-Cola can give discounts to individual products in a specific area where the sales of a particular product are low. Such advancements in technology aid in the smooth delivery of products to customers promptly.<\/p>\n
Coca-Cola is a huge multinational company in over 200 countries in the globe, thus the information from production, sourcing, distribution, and sales is huge. To successfully make use of this data, Coca-Cola uses a big data analytics approach. Here, Coca-Cola takes information from all countries regarding the purchase behavior of customers. This allows Coca-Cola to make suitable changes in distribution to meet the purchasing demands of the customers in different countries. As such, Coca-Cola can make appropriate shipments to specific regions based on the customers purchasing behavior, which prevents losses in the distribution of a product that wouldn\u2019t sell in a specific region.<\/p>\n
In marketing, Coca-Cola has made noteworthy strides in ensuring that it advertises its products on all platforms. One major advancement in marketing is targeted marketing with the use of Artificial Intelligence. Here, when Coca-Cola recognizes pictures of their products in social media, AI sends these individuals ads centered on the images uploaded. This approach is efficacious as it targets the individuals searching for the product when it\u2019s contrasted to other forms of marketing.<\/p>\n
Industrial Organization Model<\/p>\n
The industrial organization model of Coca-Cola describes how the external environment impacts the strategies of Coca-Cola. Firstly, political factors impact the operations of Coca-Cola, for instance, political instability. For instance, Israel’s attacks on Gaza in 2014 had negative impacts on the sales of Coca-Cola. This is because more than 100 hotels and restaurants in Turkey ceased selling commodities from Coca-Cola. Such political factors made Coca-Cola realize a decline in sales in Turkey.<\/p>\n
Economic factors that Coca-Cola faces in running its operations encompass the economic development of a country and interest rates. Moreover, tax charges of different countries impact the operations of Coca-Cola company. However, since Coca-Cola is a multinational company, it’s not heavily impacted by these factors. For example, the global economic and financial crisis that transpired in 2007-2009. A prevalent number of firms incurred losses, conversely, Coca-Cola wasn\u2019t affected adversely. This is evidenced by the industrial margin of 22% maintained by Coca-Cola following the crisis. As such, the industrial organization model utilized by Coca-Cola makes them maintain above-average revenue streams at the end of a financial period.<\/p>\n
A social factor that affects the operations of Coca-Cola is the disregard of soft and carbonated drinks by customers. This is due to the quest of individuals to achieve a healthy lifestyle which sugar in soft drinks impedes. Reports from Coca-Cola indicate that over the last decade, the sales of soft drinks decreased while that of water and sports drinks skyrocketed (Gertner, 2018). Coca-Cola adopted the dynamics in the market by producing healthy drinks such as sports drinks and bottled water. The customers embraced the drinks, this enabled Coca-Cola to remain on top in the beverage domain. <\/p>\n
Resource-based model<\/p>\n
The broad resource base of the company can be employed to obtained optimum company revenue. The company has unique products such as the coke soda that is the consumers prefer. The product can produce in different tastes to collect more revenue. For example, the company can manufacture additional products from the main product like the sugarless drink to earn from the non-sugar consuming market. If the company dedicates its resources toward optimal production of such products, the company can be able to supply more products to meet the large market demand. The financial resource ability of the company can also be used in brand promotion and marketing through advertisement. The company can afford the best form of advertisement due to its broad financial base. As a such, it should use the resource to control market dominance and reach consumers in every location. Lastly, the company already has a reputable brand name. The company can use the brand name to earn more profits through a franchise. As the company trades in the foods industry, it can allow people to use its name to pen eateries and hotels in its name to earn additional income. By adopting the above concepts, the company can use its resource base to obtain additional revenue.<\/p>\n
Vision<\/p>\n
The vision statement of Coca-Cola states that “Inspiring each other to be the best we can by providing a great place to work.” (Coca Cola mission statement 2021| Coca Cola mission & vision analysis,\u201d 2021) The vision statement of Coca-Cola has core elements that reflect how the company executes its operations. These encompass, inspiring each other, having a conducive working environment, and being the best. Firstly, the operations of Coca-Cola exude how the company strives to uplift others and the community. A significant number of investors are diverse as Coca-Cola aims to uplift dissimilar individuals and communities. On being the best, Coca-Cola instigated the production of healthy novice products, for instance, bottled water and sports drinks. Additionally, Coca-Cola made available conducive working environments as Coca-Cola takes in all individuals regardless of dissimilarities in a race, religion, and skin color. As such, the mission statement of Coca-Cola aids in achieving its objectives in how Coca-Cola executes its operations.<\/p>\n
Mission<\/p>\n
The mission statement of the company contributes to the success of the company by setting clear its target. The company\u2019s mission is, \u201cTo refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.\u201d (Coca-Cola mission statement 2021| Coca Cola mission & vision analysis,” 2021). The statement demonstrates a spirit of inspiration to optimism and happiness. An aspect that makes the consumers view the company\u2019s products as a source of happiness. The positive view helps create a good brand image and customer loyalty hence boosting sales.<\/p>\n
Shareholders<\/p>\n
The number one stakeholder in the company is the customers. Customers consume the products of the company at a price earning income to the company. Other stakeholders include bottling partners, governments, industry partners, and non-governmental organizations (Brondoni, 2019). The bottling partners ensure that the products are packed in appropriate containers for sale. On the other hand, governments provide enabling environment for the operation of the coca-cola business. Non-governmental organizations promote the band name by partnering with the company in activities of cooperate social responsibilities. Each activity of the stakeholders helps in the success of the organization through profit maximization.<\/p>\n
References<\/p>\n
Brondoni, S. M. (2019). Shareowners, Stakeholders & the Global Oversize Economy. The Coca-Cola Company Case. Symphonya, 16-27.<\/p>\n
Concha Rold\u00e1n, D. B. (2018). Philosophy of Globalization. Berlin: De Gruyter.<\/p>\n
Gertner, D. R. (2018). Coca\u2010Cola and the Fight against the Global Obesity Epidemic. Thunderbird International Business Review, 161-173.<\/p>\n
Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and Cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning<\/p>\n
Coca-Cola mission statement 2021 | Coca-Cola mission & vision analysis. (2021, January 27). What is the Company Mission Statement? | Difference Between Mission & Vision. https:\/\/mission-statement.com\/coca-cola\/<\/p>\n","protected":false},"excerpt":{"rendered":"
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