Discuss About The Food Companies Influence Evidence Opinion.
In this world, there are over 2000 organizations, which serve different functions and different purposes. All these organizations have a history of success and failures. They have also faced different challenges and opportunities during their time of operation. Some organizations have failed to attain their objectives while others through good management and participation from the employees have proudly achieved their goals and objectives. The coca Cola Company is one of the most successful profits making organization has also faced these challenges and opportunities. The company is a worldwide known company, which started in the United States of America as a small retail business of Pemberton. The company has a long story of successes and supplies products to over 200 countries in the world. The company serves around 1.7 billion of its drinks in one day and is the best soft drink company in many years.
Management strategies and other factors of an organization determine whether the company will perform better in its operations or not. The coca cola company has had different management strategies, which keep on changing for the company to be able to meet the ever-changing demand for its products. It also has a mission and visions set by the management to enable the company staff to remain focused on achieving this goals and objectives. The company has faced different challenges discussed below in its organization and management and opportunities. It is affected by the external environment, which has also contributed a lot to its success. The following is a research on the organizational and management strategies of the company. The research evaluates the company’s management structure, environmental effects and competition, a SWOT analysis and pest test of the company. It also gives recommendations on the best management strategies that can be adapted in the company.
Before we embark on the strategic management, strategies there is need to understand some overall information about the company. The company is the largest supplier of soft drinks around the globe. It has a large network of supply where it supplies its drinks to over two hundred countries. These drinks are over 399 brands of soft drinks. The large network has incorporated more than 140000 associates of the company so that it can be able to distribute this large amount of soft drinks. Because of this huge product portfolio and the fact that the company has very different customers there is the need for a very smart and specific marketing and management strategies. Therefore, the company has narrowed down its management and marketing strategies in different countries because a strategy that works for one country might not work in another company.
The company in order to be more competitive has a differentiation strategy that is met through producing high-quality products that excel over their closest rivals and brings a very high image of the brand and recognition. The company also achieves a product differentiation with promotions and a unique packaging. For instance, the company uses one bottle that has now become an internationally recognized symbol. The above methods are primarily the methods that the company uses for its strategic direction and management. The company through the above measures is able to bit its competitors and provide products that are uniquely valued by its customers. Its product is in a good way incorporated into a huge portfolio that enables the products to hold a huge market from the world.
Like in any other organization and corporation, managing this huge corporation involves many challenges in the management of human recourses and which should never be neglected for the success of the corporation. These challenges are experienced in training of the employees and other areas in the human resource management. The coca cola company took three different approaches to address these challenges. The company involved in strengthening their development focus and business strategy links, it also put measures to involve their leadership in all areas involving development and used different tools of development to counterpart organizational and personal needs in a better way.
The company uses both mentoring and coaching methods concurrently that brings a great benefit to the employees. Through coaching, the company is able to increase its performance. An activity occurs between the employer and the employees, which is informal. On the other side mentoring is when the company’s employees relate to another person who is not part of the organization or area. The reasons for mentoring are broader even though the mentor applies all coaching aspects. The company through applying both mentoring and coaching believes that the two plays their own different roles in the human recourses effort of development. The company also greatly affirms that development of staff plays a great role in bringing competition benefits to the organization. This has increased the company performances thus the great success of the organization.
In order to be able to obtain clear information about the company and its management strategies, there was the need to apply different methodologies in doing my research. The following are some of the different methods used in obtaining information about the organization. First and for most I used the internet to obtain information directly from the company website. On the same, I obtained information from articles written by different personnel concerning the company. Secondly, I prepared questionnaires based on the case study of my research, which I administered to different people in the organization. These people included workers from the organization, customers, and managers. In addition, I took a visit to different branches of coca cola Company around the country to understand organizational and management strategies of the company. Through observation and direct interview of staff about the company operations, I was able to obtain first-hand information about the management strategies.
Over the years, the company has been changing its organizational structure to be able to meet its market demands. The company changed from a centralized organizational system to a decentralized organization where it has managers based on the local level. It has a separated international division structure where its staff operates in a different way depending on the country. These divisions are in isolation from the higher management and operate locally. This is useful because they are able to evaluate the market of the product from a closer view to be able to make changes where necessary. They are also able to receive direct feedback and opinions from the direct consumer of the product. The company has divisions a management group in all the continents with presidents who control the different divisions in the continents. The company has an overall of five continental divisions that are as follows;
The company has a president for each group in different continents. The structure used by the company is too large and cannot operate from one management group. The head management controls all the company operations in the different continents through the divisions. The following is a diagram showing the organizational structure of the company and the divisions
The coca cola company due to increased marked demand realizes that there is need to have a well-designed management structure to be able to meet the ever-changing demand. The company, therefore, moved from centralized organization to decentralized system. The organization came up with two operating groups that are corporate and bottling investments groups. These divisions allow management decisions to be made at a local level and therefore the organization can respond to the changing demand of the market quickly.
This gives the higher-level management enough time to focus on planning the organization’s strategies in long-term bases. Most decisions and innovations are located in the corporate division of the company. This design includes advertising and other decisions affecting the sales of the company’s products. However, the major decisions affecting the company’s operations are left to the higher management.
Strategic management of the company is evident in the leadership of Neville Isdell who was made the CEO of the company and the chairperson in 2004. In his management as a CEO, he used mechanisms of integration that were more complex so that he could increase the growth rate of the company. He used the top management personnel to come up with solutions for the problems affecting the organization. In addition, he called for frequent face-to-face, meetings to held at the local level so that the company’s employees could remain updated at all times. He also applied the use of intranet so that different information that is important to the company is shared in a faster and effective way. These complex management strategies are important in raising the performance of the organization and increasing productivity of the employees. The organization has the board of directors who are the greatest contributor to the capital of the company. The boards of the director are responsible of making the very important decision of the company. These are decisions involving great risks and the higher-level management cannot be trusted with such decisions.
Strategic management of an organization involves setting a vision and mission for an organization. This enables the organization to come up with a good operational plan to be able to meet the mission and vision set. It also enables the organization employees to remain focused and work hard towards realizing the organization goals. The coca cola company due to the changing world has to view the trend of business look ahead and set goals and missions that will enable it to remain purposed and to shape the future of the business. The company must take actions to get ready for the future in the present times. This enables the company to have a safe destination in the end and a direction of succeeding together with other partners who deal with the same products.
The company has a mission based on three objectives, which the company is determined to achieve. The objectives involve; exhilarating the globe, bringing happiness and optimism experiences, adding value and making a difference. On the other hand, the company vision guides in the things that the company is required to accomplish so that it can achieve quality growth and sustainability. The company has a vision to be a great place of work that inspires their workers work to their best abilities. It also wants to provide the world a wide range of brands of beverages, which are of high quality that brings great satisfaction to the customers. Maximization of profit, increasing productivity and becoming a good partner to other companies is also part of the vision.
Each operating organization in the world has strengths, weaknesses, opportunities, and threats that it faces in its operation. The strengths are those that contribute to the company’s success and those that make the company remain operational. On the other side, weaknesses are those aspects of an organization, which brings the operations of the business down and works as a barrier for the company to meet its objectives. Opportunities are chances and offer created for the company to venture into certain productive actions by the environment. Threats are factors that if not taken care of appropriately may lead to poor performance of the organization.
Strengths: the company produces the best brand of beverages in terms of quality and value. It has been for a long time the best soft drink producing company that has acquired customers all over the world. The company has also attained the largest share of the world’s market for beverages products. The market share is estimated to be around 58% of the world’s market for beverage drinks. The advertising and marketing strategies are also part of its strength. The company uses of expensive advertisement methods and is highly recognized around the globe. The company also supplies its commodities to over 200 countries in the world and makes sales of over $1.65 billion per day. The company has a strategy that enables it to compete effectively whereby it has branches all over the world and produces its products at a local level. This enables the company to evade the government regulations discouraging importation.
Weaknesses: the company focuses on producing carbonated drinks where it focuses on selling coke, Sprite, Fanta and other varieties of carbonated drinks. On the other hand, the world has put in place different strategies to fight with obesity and people are encouraged to take healthier drinks and foods. Therefore, the work of the company of embarking on the production of the carbonated drinks will just have a short-term effect on the organization. The company has also focused on the production of beverages, unlike the other competitors that are a disadvantage to the organization. From the fact that the company does not engage in the selling of other commodities such as foods and the fact that the sale of soft drinks is stagnating the company will get challenges in joining the selling of other commodities. The company also faces a weakness of having a huge amount of debt because of acquisitions. For instance, the company level of debt increased due to the debt that the company acquired about $8 billion from CCE’s. The company is also facing a negative influence from what people say about the company. It is criticized by people in the areas where there is no enough water for consuming a lot of water. The firm also does not have a good strategy of introducing new drinks to the market and out of the many brands it produced are not ball having the same level of the market. Very few brands result to at least $1billion value of sales.
Opportunities: the company other than the soft drinks deals with selling bottled water to different parts of the world. The market for bottled water is growing at a higher rate in different parts of the globe. For instance, in the US and in the other parts of the world there is an increase in demand for drinks and food, which does not bring health complications. Therefore, demand for water has increased to a higher level, which is an excellent opportunity for the company. The company also has an opportunity created by the emerging markets from the developing countries. The company has a chance to maintain the market share in those countries.
Threats: the threats that face the company are the changing of consumer tastes and preferences. Consumers are not willing to consume carbonated drinks for they are concerned about their health. This has posed a great threat to the company as it produces carbonated drinks only. The scarcity of water is also a threat to the company. Around the world, scarcity of water is a trending issue, which increases the cost of producing the drinks and public critics to the company. The company also faces a threat from the legal regulations by the government on the production of carbonated drinks, which are not suitable for human consumption. Lastly, the company is facing a great threat due to the reduced net profit margin and gross profit. The profit has been decreasing for the previous 5 years and has continued to reduce even in the current years.
Figure 1.3
For the company to operate effectively it relies so much on the external environment. The environment provides opportunities for the company and threats that may affect the productivity f the company. The company uses clean water that is a great problem to get the water in different parts of the country. The company also depends on the environment for market and other raw materials. The company faces a challenge of only depending on a few suppliers of raw materials that is a great threat to the company. On the other hand, the company contributes to the environmental pollution with plastic cans, which are a great pollutant. In the strategic management of the company, the managers and directors are supposed to consider the effects the company brings to the environment.
After looking dip into the strategic management analysis I would want to recommend the following for the company; the company in order to be environmental friendly should replace the aluminum and plastic containers with burlap containers, which are friendly to the environment. Secondly, the company should come up with strategies so that they can be able to increase the marketing teams in the rural. The company should also introduce non-carbonated drinks in order to be able to sell to those who do not drink carbonated drinks. In addition, the company should venture into selling other products other than just beverages. This product includes food staff and other products, which are not beverages. In addition, the company should involve other direct product promotion methods like giving gifts to the customers and not telling them to shake a soda but to buy one for their own. Finally, yet importantly, I would recommend the company to get the supply of raw materials from different suppliers so that they can reduce the risk that comes with the failure of the suppliers.
Conclusion:
In conclusion, Coca-Cola Company is a very effective and efficient company. it serves around 200 countries in the world and is recognized all over the world. The company has a strategic management system that involves having independent groups of managers in different countries. These divisions are able to make decisions at a local level that enables the company to be able to respond to the change in demand in a quick way. The company has a board of directors who are involved in making decisions on the most important matters of the company. The company is a very competitive company and with different strategies of differentiating its products has been able to bit its competitors. The company has a vision and a vision that motivates the employees and keeps the focused towards the goals of the organization. It has its strengths, weaknesses, opportunities, and threats, which affects the countries operations. Lastly, the company should apply different strategies to be able to counter the decreasing rate of its net profit.
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