Coca Cola Company Operations And Strategies Business Essay

coca cola ac order Operations And St evaluategies craft Essaycoca plant booby was invented by stretch John Pemberton a pharmacist from battle of Atlanta, Georgia in May, 1886. John Pemberton invented the coca plant Cola formula in a three legged organization kettle in his backyard. The name was a suggestion given by John Pembertons bookkeeper Frank Robinson. The soft potable was root exchange to the national at the soda fountain in Jacobs Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that first year bringed up to a rack up of about $50. But it cost John Pemberton oer $70 in expanses, so the first year of sales were a loss. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. In 1887, a nonher Atlanta pharmacist and dutyman, Asa Candler bought the formula for coca Cola from artisan John Pemberton for $2, three hundred. By the late 1890s, coca Col a was one of Americas intimately popular fountain drinks, largely due to Candlers aggressive marketing of the reaping. With Asa Candler, now at the helm, the coca plant Cola accompany increased syrup sales by over 40% between 1890 and 1900.On April 23, 1985, the trade privy(p) New vitamin C formula was released. Today, products of the follow are consumed at the rate of more than one billion drinks per day. Now company produces more than 300 beverage brands. The corporate headquarters are in Atlanta, with local trading operations in over 200 countries around the world. More than 70 portion of the income comes from outside the U.S, but the real reason they are a rattling world(a) company is that the products meet the varied taste preferences of consumers eitherwhere. But the Company has several issues that influence its profits and position in the market. Such as placid producing its coca Cola Classic product, which contains advancedschool take aims of sugar and caffe ine which is invalidatingly concern costumers health. And it may compact the collect for some of their products and impact customers trust or tout ensembleegiance. The second one is banned sales of blast in its cafeteria by the Indian parliament. When coca cola was evidenceed, it was found that it includes high concentrations of pesticides and insecticides, including lindane, DDT, malathion and chlorpyrifos. Some samples tested showed the presence of these toxins to be more than 30 quantify the standard allowed by the European Union. But the same drinks were found to be safe in US.The third issue is boycott against the companys using abundant amount of irrigate from the common ground irrigate source. And as a resolving of its operations the scarce piss has been polluted by Coca Cola (case matter Coca Colas strategy, www.thecoca-colacompany.com).Mission and Vision StatementMission StatementCoca Cola Companys mission statement is to maximize shareowner value over time. In order to achieve this mission, they are creating value for their consumers, bottlers, and their communities. The Coca Cola Company creates value by executing comprehensive commerce strategies (mission good deal values, (2009) www.thecoca-colacompany.com).Vision StatementTo achieve sustainable emersion, Coca cola has ceremonious a lot with clear goalsProfit Maximizing return to shareholders heap Creating great place to work where people are inspired to be the best they can be. Thomson, Gamble, and Strickland (2006) suggest that Coca Cola intends a theme for workforce diversity makes recruiting employees easier (talented employees from diverse backgrounds often seek out much(prenominal) company)Portfolio Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples desires and necessitatePartners Nurturing a winning network of partners and building mutual loyalty artificial satellite Being a responsible global citizen that makes a difference (m ission vision values, (2009) www.thecoca-colacompany.com).Companys StrategiesBrand development Strategy. P.Kotler and K.L.Keller (2009) suggest that brands signal a certain direct of quality so that satisfied buyers can easily choose the product again. So Coca Cola Company to far reach and to know remaining in the limelight it created Brand development strategy. This strategy is legal as it has been able to construct, manage as well as find its brand image since yesteryears. As Kotler et. al., (2009) argue, brand loyalty provides predictability and security of contend for the company and creates barriers to entry that make it for other firms to enter the market. The brand loyalty is the instrumental in keeping up companys brand image. Over the years, Coca Cola has passed several tests of brand enhancement and the company makes it a mastermind that the products under the banner Coca Cola continue to invade the minds of the consumers. It involves 4000 customers to test 20 bran d attributes every month.With regard to the brand development of Coca Cola Zero, the company came out with an advertisement, which was quite different from the conventional ones. In this regard, (no calorie beverage), it has shelled out three types of productsCoca Cola Classic fare gustCoca Cola Zero.There are few experts who believe that when Coca Cola had the tag line of The Real Thing, it was really that but with the invention of various categories of coke, the real thing changes to legion(predicate) things, and the original sapidness is usually lost. Hence, the brand building strategies should be such that it does not dodge people and is able to retain consumers despite the fact that several late non alcoholic beverage firms are on the (development strategy of Coca Cola, finance.mapsofworld.com).Business Intelligence Strategy. In order to know what consumers prefer it intends to use culture technology (IT) to monitor the pulse of its customers. According to Information Wee k oblige titled Cokes RFID-Based Dispensers Redefine Business Intelligence, Coke plans to roll out the Freestyle drink dispenser nationwide which is taking the concept of customer choice to new heights, and the nigh interesting aspect is the technology its built on. According to Rainer and Turban (2009), personal credit line intelligence (BI) is applications and technologies for consolidating, analyzing and providing access to vast amounts of information to help users make go business and strategic decisions. Freestyle will become Cokes front-line robotic army for BI, sending massive amounts of consumption selective information back to the beverage companys Atlanta headquarters. The dispensers collect data on what customers are drinking and how much, and transmit that information each dark over a private Verizon wireless network to Cokes SAP data warehouse system in Atlanta. Unique byproduct of this BI enabled dispenser is that Coke can try out new flavors and feel back some real time feedback on the viability of its success. With a competitive advantage standardised this, I think its a good idea Coke line of descent its IT details to develop its recipe formula.Price strategy. Sometimes Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle.Promotion strategy. They get or purchase shelves in big departmental stores and display their products in those shelves in that style which show their product clearer and more attractive for the consumers (Coca colas business intelligence strategy, www.itstrategyblog.com).SWOT AnalysisStrengths1. Brand equity2. Product statistical distribution and worldwide network3. Solid financial performance4. One of the worlds nearly recognized brand.5. InnovationWeaknesses1. Credit rating2. Customer concentration, particularly in the US (Wal-Mart accounts for more than 10% of Coca Colas business in the US)3. Does not enjoy the offspring one position in India, Pakistan.Opportunities1. Possible evolution demand.2. Expansion reaching all segments.3. Globalization4. Catering to Health soul of People5. Bottled water growthThreats1. Health Drinks Fruit Juice Companies2. light upon competitors (Pepsi, etc)3. Commodity prices growth4. Image perception in certain move of the world (case study Coca Colas strategy, www.thecoca-colacompan).Driving ForcesI think the first driving force for the company is customer demand. If there is no demand it is meaning in producing the product. So for the Coca Cola, driving force is customer demand.The second one is innovation. Nowadays companies have to be able to prevail and grow in an ever-changing market. In order to achieve these they should systematically innovate and deliver new products. According to Companys late 90s earnings growth of 15-20% per year, turned in three straight years of falling profits. It was unvarnished that the market was changingand for keeping up these changes, Coca-Cola had to move from a one core product to a total beverage company. This was a major(ip) change because their past success was base on having one made core product.Now Coca-Cola offers nearly 400 different products in and is still dominating the beverage industry.The third driving force is globalization. Todays big business takes place on a global scale, and Coca-Cola is no exception. Technology is continually changing business, and these constant changes have been making it more feasible and advantageous for businesses to expand their operations globally in order to serve all different types of diverse markets around the world. Coca-Cola is taking advantage of the large tax revenue opportunities made possible by participating in a global market and now offers products in 200 countries around the world.Iss uesIn my tactile sensation the main issue of the Coca Cola Company is still producing its Coca Cola Classic product, which contains high levels of sugar and caffeine is causing a recent uproar on our increasingly health-conscience world. There is a supposition that obesity concerns may reduce demand for some of their products. In addition, the around amounts of its products are selling in the schools so this puts the pressure on Coke to provide healthier alternatives to their drinks if they want to keep selling in schools.The coterminous problem is the Indian parliament has banned the sale of Coke products in its cafeteria. The ban came as the moderate of tests, including those by the Indian government, which found high concentrations of pesticides and insecticides, including lindane, DDT, malathion and chlorpyrifos, in the colas, making them unfit for consumption. Some samples tested showed the presence of these toxins to be more than 30 times the standard allowed by the Europ ean Union. Tests of samples interpreted from the US of the same drinks were found to be safe.As we know water is rare resource and today one of the main problems of the world is water shortage. This creating the problems in most companys operations and Coca Cola is no exception. The Companys bottling operations are facing severe shortages of water as a result of the cola major sucking huge amounts of water from the common groundwater source. To add insult to injury, the scarce water that remains has been polluted by Coca-Cola as a result of its operations. It is resulting thousands of Indian people protesting against the company.Conclusion and recommendationsThough Coca Cola is performing well and gaining trust of its consumers and obtaining new consumers trust every day, it should act even better to keep its current position in beverage industry and keep on growing. The Company should increase its shareholders wealthiness by increasing its sales and decreasing the costs which will result higher earnings and net profit.As conclusion of analysis I have done, I suggest the following recommendations for the Coca Cola CompanyToday everything is rapidly changing and companies for surviving should go step by step with those changes. The innovation gives the company key advantage among its rivals. So Coca Cola Company can introduce a new product, which many people will want to try.Coca Cola needs to incessantly strengthen its brand to maintain brand loyalty and differentiate itself from its competitors, in order to maintain its strong market position.Reason of not world popular in India is the utilization of rear water resources. This put negative effect on the brand image, because of cola plant water level in the area decreases which makes the resident life miserable. If the Company wants a number one position in India they have to follow following criteria environmental due diligence before acquiring land or head start projects Environmental impact assessment b efore commencing operations Ground water and environmental surveys before selecting sites.Another major asset to a company of this size and clout is maintaining continuity among the workforce. This is essential to keep the company in a positive direction, accomplishing common goals and constantly setting new goals.