Discuss about the Management Problem for Coco Cola Company.
Coco Cola has been referred to as one of the biggest producer, supplier and manufacturer for non – alcoholic beverages and syrups all over the globe. The company is known to manufacturer more than hundred brands of juices, soft drinks, water, energy drinks, tea & coffee. Coco Cola operates in more than hundred countries. This makes its one of the largest suppler & producer of non – alcoholic beverages worldwide (David, 2007). Coco Cola produces liquid which is then sold to licensed coco cola bottlers in the world. It shall be seen that, Coco Cola incorporates a management team which markets & manufacturers the products for it suppliers. Coco Cola has evidenced large number of problems within the organization.
The report will take into consideration, the strategic management issues faced at Coco Cola (York, 2010). Strategic management has been referred to a process of identifying the objectives, mission, vision & allocation of the resources in order to implement the business plans. Strategic management has been referred to as one of the greatest levels of managerial practices which are guided by the executives or officials. It refers to one of the most vital aspects within the organization to provide overall direction in the company. Strategic management has been referred to as one of the biggest issue in Coco Cola or Coke (Tawfik Mady, 2009). This is because of the nature of the international company. The result of it is that, management officials have to meet the objectives set by the top officials on international grounds. The process of international strategic management is very hard at Coco Cola as the senior manager has a greater responsibility to set & achieve the organizational goals (Meeker, 2011). Strategic Management at Coco Cola is a big problem when it comes to setting the goals & enables the company’s vision to fulfill the same. It is a hard task as it deals with large number of companies situated in different countries & focus upon skillful management so as to achieve the diverse goals. The strategic management problem is seen in Coco Cola during organizational analysis. This process requires assessments of both internal & external environment along with identifying the strengths & weaknesses faced by the company. The threats along with opportunities shall be shall be analyzed which might be faced by the company in the long run (Krishnaswamy & Satyaprasad, 2010).
The main aim of Coco Cola Company is to tackle the strategic issues so as to understand the complexities amongst the various areas of management. Some of the strategic management issues which occurs at Coco Cola Company are language barriers, advertising, politics & cultural diversity amongst others (Heugens, 2001). Strategic management has been referred to as a critical aspect for any company as it helps to see the future & track certain changes with regards to expectations of the customers & carry on proper decision making. It shall be seen that, by addressing the strategic management issues the company will be able to achieve its goals & objectives. It has been believed by various scholars that, success of any company is based upon the skills procured by the managers. In the highly competitive environment, companies these days look for ways to attain competitive advantage and attain an edge over its rivals (Heath & Palenchar, 2009).
Some of the research questions which are addressed in this essay are
The research is conducted on the same by examining the various primary & secondary data which relates to strategic management issues apparent in the international market. Some of the ways in which the information is gathered is from company’s reports mainly printed for the shareholders. The annual report will help to gather statistical information along with other necessary information required for conducting the same (Hartung, 2014). The management of Coco Cola Company shall be questioned in this regard. This would be referred to as one of the major source for primary data. The main aim of questioning the management would be to analyze the findings & clarify the exact standing of the organization. Based upon the survey conducted, there are various issues that pose a problem in strategic management in Coco Cola Company. One of the major issues is cultural diversity which might be due to racial discrimination, language barriers, cultural background, religion, sex, age & social background (Hartung, 2014). It has been seen that, Coco Cola was required to pay a certain amount to clarify its law suit for racial discrimination within the organization. According to Byars 2010, employees from the minority groups were examined with cases of mistreatment within the company. It shall be taken into consideration that, the minority groups did not accommodate to any of the top management positions. Based upon the acts of racial discrimination mentioned above, the company was unable to attain their set objectives & goals in the long run. This was mainly due to weakened strategic management. Based upon the various journals, it was revealed that external issues also enhanced strategic management issues within the company (Dobson, Starkey & Richards, 2004). Some of the examples for the same change in rules & regulations, pressure from rivals & politically unstable environment in the international markets. The other strategic management issues which is being faced at Coco Cola company is due to language barrier. It shall be seen that, language has been referred to as one of the key areas to perform a particular business. Culture also poses strategic management issue at Coco Cola. Culture is relatively homogenous in the domestic market & it is quite diverse when performing business in a different country or countries. Stability in political environment within Coco Cola Company is also considered as one of the main source for global strategic management issue. Labor is another consideration which shall be kept in mind by Coco Cola as it differs from one country to another (Ferrell, Fraedrich & Ferrell, 2010). Types of advertisements shall also be kept in mind by Coco Cola as domestic cultures are known to them. When advertising in the international market, Coco Cola shall keep in mind the various advertising ethics to be aired in a particular country. At last, the interference of government in case of the domestic market is minimal whereas, in case of international markets the cost of operation is highly expensive & subject to change rapidly.
In order to manage the issues discussed in the above section of the essay, the effectiveness of the company in order to manage the strategic management issue shall be witnessed. Hence, choosing & implementing an appropriate means to assess the effectiveness of the company is one of the main problems amongst the managers. Coco Cola Company has been referred to as one of the largest supplier & manufacturer with its operations spread all over the globe (Dobson, Starkey & Richards, 2004). Therefore, it becomes a tough task to merge the different programs into one collective program. It shall be noticed that, each & every country has its own set of criteria to manage the strategic issues based upon its performance & needs arising from the different nations. In order to cater to the strategic management issues, a specific resource allocation along with competitive & comparative distribution system shall be performed. Therefore, it becomes an impossible task to have a single strategy for all the branches or outlets all over the globe. Application of the managerial process model will help to handle the strategic management issues in the best possible manner. This model will help to assess the productivity of the company i.e. Coco Cola based upon various managerial processes such as planning, organizing, staffing, directing & proper budgeting in order to achieve the set goals and objectives (Dobson, Starkey & Richards, 2004). Based upon the managerial process model, the company will encourage team work in order to overcome some of the basic issues as mentioned above i.e. culture, language barriers, and political environment stability so as to practice high levels of performance in the company. By implementing the process, the company will be able to meet the needs of the employees, freedom of communication which will help to enhance the trust amongst the employees & impart confidence amongst the workers to create a team work spirit & practice loyalty amongst the employees group. By implementing the same, Coco Cola will be able to enhance the strategic management issues which will help to enhance the performance of the organization in the long run.
Regarding the company’s external & internal environment, the issues have had the capacity to cause a larger negative impact on the performance of the organization. Hence, investing in the strategic management systems will help to offer various alternatives so as to analyze & react over the issues of diversity management (Dobson, Starkey & Richards, 2004). With the help of the adaption process, Coco Cola has been able to achieve alignments in case of environmental issues as well as illustrate the knowledge & understanding the same. Strategic management systems will also help the company i.e. Coco Cola to carry proper decision making process and ignore the various irrelevant issues and shift the efforts to significant issues. Pursuing collective workloads will also help the company to improve its organization (Cunningham & Harney, 2012). The system will require high levels of skills & knowledge in order to handle the strategic management issues in the best possible manner thereby leading to high levels of performance of the same. The external issues of the organization shall be managed by using various automated management systems in order to identify the significant public policy & execute the problems handling approaches before they develop legislative actions (Cooper, 2013). Some of the general issues of strategic management shall also be managed with the help of automated monitoring systems in order to align the internal & external capabilities and take over the future threats & opportunities of the same in the most effective and efficient manner. At Coco Cola, shall take into consideration various planning channels which will help to link the managers in the collective decision making process. The need of proper planning shall be referred to as a very important aspect as it will help the company to achieve its expansionary needs (Cooper, 2001). The planning process shall be such which takes into consideration the future allocation of financial resources & use the financial resources in the best possible manner. The strategic management issues at Coco Cola Company will be addressed if and only if proper implementations of the measures are ensured.
Some of the alternatives available for Coco Cola to achieve high levels of efficiency & multinational flexibility have been referred to in this section of the essay. Coco cola shall adopt any of the four strategies i.e. home replication strategy, global strategy, transnational strategy & multi – domestic strategy (Byars, 2010). In case of home replication strategy, the organization will be able to utilize its core competency in order to maintain its competitive environment in the international markets. This means that, it performs exceptionally well in the home market & duplicate the strategies in the international markets. In case of global strategy, the corporates view the world as a one single market place. The main goal of the same is to create goods & services which will help to address the needs of the customers in the long run. In case of transnational strategy, the company attempts to combine the various benefits global scale efficiencies and benefit the locals
Conclusion
It shall be taken into consideration by the management at Coco Cola that, leadership shall be focused on its aging brands without identifying the trends &figures in this market. It has been noticed that, people care a lot less about Coco Cola as they used to in the starting years. This has led to a decline in the sales figure for the same (Bajpai, 2011). Coke shall focus on a strategy shift or else it will keep on weakening its brand amongst its direct competitors or rivals. People & younger generation these days are shifting its focus on other new brands as compared to Coco Cola only. In order to regain its market share, Coco Cola shall adopt various other approaches which will align with the new trends which matters more to the consumers. The company shall come up with products which excite the consumers as well as which helps the customers to identify the brand (Australia & Ronkainen, 2013). The leaders at Coco Cola shall move faster in order to shift its market consumption as well as make a new brand in social media & attract the new generation. Strategic management has been referred to as one of the biggest issue in Coco Cola or Coke (Tawfik Mady, 2009). This is because of the nature of the international company. The result of it is that, management officials have to meet the objectives set by the top officials on international grounds. The process of international strategic management is very hard at Coco Cola as the senior manager has a greater responsibility to set & achieve the organizational goals (Meeker, 2011). Strategic Management at Coco Cola is a big problem when it comes to setting the goals & enables the company’s vision to fulfill the same.
References
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