Business Strategy Concepts You Need to Know

Strategy Concepts Review 

Strategic implementation refers to a set of activities that translate strategies into actions in order to achieve the expected goals (Wilson, 2017). A strategic plan is a document that explains the steps and activities to be implemented in order to attain the desired goals. It incorporates feedback and reports for tracking progress to make sure that the strategy is on track (Wilson, 2017). A good strategy can place an organization or business on the competitive edge but only a strong implementation can maintain it there (Neilson, 2008). For implementation to be successful, a number of factors ought to be put into consideration. 

An important concept in strategy discussed in Harvard Business Review (2005) chapter seven is progress reviews. The chapter’s author explains that a periodic progress review is important for tracking execution. Review enables managers to measure how well things are done according to strategy plan. It is important to ensure that implementation is on track (Wilson, 2017). The management should review reports generated on a periodic basis to review and track progress to ensure that strategy’s goals and objectives are met (Wilson, 2017). Periodic reviews conducted on a weekly or monthly basis help in identifying problems that might jeopardize a strategy execution. Without periodic reviews, problems that may affect strategy implementation may not be identified and thus can affect execution success in a negative way. Periodic reviews help in identification of problems on time. 

Leading strategic change as discussed in chapter nine is another important concept in strategy. As explained in the chapter, sticking to strategies that have been proposed and supported for a long period is easier than acknowledging that time has come to implement something new (Harvard Business Review, 2005). A change leadership that is effective is crucial for any organization or business that is experiencing major transformation (Wilson, 2017). Specifically, the ability of leaders to effectively and successfully lead strategic change is important in addressing challenges that may come along with initiating change among all stakeholders. Researchers propose that for effective leadership in strategic change, communication, collaboration and commitment must be present. In addition, the ability to initiate, strategize and execute are important competencies in leading the change process (Wilson, 2017). Most organizations fail in their strategy implementation because of the inability to successfully lead change. 

In their article, Secrets to successful strategy execution, Neilson et.al (2008) explain that ensuring every individual in the organization is aware of the decisions and activities they are responsible for in strategy implementation is an important factor is ensuring successful and effective execution. According to the authors, organizations solid on implementation have 71% of its personnel agree that every person is aware of decisions and activities that he /she is responsible for. However, those that are weak on implementation have 32% of company staff agree. Making boundaries regarding where an individual’s accountability starts and ends clear is crucial in successful strategy execution (Neilson et.al, 2008). It helps ensure that people play their roles in their assigned areas without interfering with those of another thus minimizing conflict and overlapping of responsibilities (Wilson, 2017). 

Bassi and McMurrer (2007) in their article “Maximizing your return on people”, identify what they term as Human Capital Management (HCM) drivers. These drivers foretell performance in an organization or company and operations. They include: leadership actions, participation of employees, ability to access knowledge, optimizing the workforce, and the capacity of the organization to engage in learning (Bassi and McMurrer 2007). These drivers are crucial in strategy planning and execution too. The performance of an organization influence the success and effectiveness of a strategy planning and execution (Wilson, 2017). 

The Boston Consulting Group image, model and model explained, present the concept of framework use as a strategy planning tool to differentiate different products in a business. The framework developed by Boston Consulting Group is used to assess the strategic position of the company product portfolio and ability. The model categorizes company portfolio into four major groups that are founded on growth rate and competitive share in the industry. A framework structured to assist in strategic planning on a long-term basis is crucial in strategy planning and development. It enables a business to look into growth chances by assessing the portfolio of products to identify the area to invest in, stop or innovate products. 

Boston Consulting Group Matrix for Coca-Cola 

The Coca-Cola Company has been in the beverage industry for more than a hundred years. The company has been producing and supplying various beverages to more than 200 countries throughout the globe (The Coca-Cola Company, 2019). In this section, the BCG matric will be used to analyze the company’s products based on market share, revenue made on a yearly basis and the capacity for growth. 

Cash Cows 

Cash cow is a term used to refer to products that are the major source of revenue for a company. A cash cow makes adequate sales to acquire a significant market segment in a specific industry (Reeves, Moose, & Venema, 2014). The market dealing with Cola has grown and matured throughout the years and today, there are several companies in the market. The Coca-Cola beverage produced by the Coca-Cola Company has been and is still a cash cow for the company. Coke is the most preferred choice of carbonated soft drink by many consumers throughout the world. 

A big segment of the company’s operations deals with finished products which comprise of approximately 63% of all the company operations (Estrel, 2015). The company has bottling partners in various parts who avail the finished product to consumers. This helps the company in making more revenue. Although the company has some setbacks as a result of decreased sales, the management adjusts their strategy in order get back its position in the market (Estrel, 2015). 

Stars 

Stars are products explained by the main characteristic of acquiring the highest share in the market compared to those that have a small market share. Since the market is in the development stage, a star has the potential of increasing the current share in the market and make a stable source of income for a company (Reeves, Moose, & Venema, 2014). Coca-Cola Company’s bottled water is a star for the business. It is categorized as a star because the industry dealing with mineral water production is in its development stage on the global scale. In Europe and Asia, Coca-Cola Company sells Kinley bottled water. On the other hand, Dasani is sold in the United States and in the United Kingdom among other markets. The two brands are stars for the company because the increased requirement for mineral water creates growth opportunities (Estrel, 2015). 

Question Marks 

Question marks are products that present a questionable outlook on the basis of development in the future. Such products cannot be termed as stars because they have not excelled in the market. There are opportunities for growth in the market but such products are not able to take advantage of the chances in a way that is effective. For Coca-Cola Company, Minute Maid is a question mark. Although the beverage has been able to generate some considerable amount of revenue ($1 billion), the beverage has not acquired popularity throughout the world like Coke. 

Diet Coke can be categorized as a question mark also. In the past, the brand was to some extent favored by many people. Currently, the brand is reducing in popularity. There is potential growth and opportunities in the market because of consumers who are conscious about their health but diet coke has not tapped into the market. In addition, Honest Tea is a question mark for Coca-Cola Company too. In addition, Sparkling water can be categorized as a question mark because the product has not been able to take advantage of the opportunities available in the market. 

Dogs 

These are products that were seen as having the ability to grow but did not. The products are in the mature industry and therefore their opportunities to grow are few (Reeves, Moose, & Venema, 2014). Dogs do not generate considerable income for a business. Because the future development and growth of the product is limited, such products require an assessment to determine whether manufacturing them is viable from a market perspective. Coke Life can be considered as a dog. The brand is low in calories and aims at consumers who are health conscious. The beverage has not done well in the market largely because the soda market has matured therefore reducing the chances for new products to grow. 

Secrets of Successful Strategy Execution for Coca-Cola Company 

The secrets to successful implementation of strategy are proper information flow, decision rights, motivation and structure (Neilson et al., 2008). The secrets to success in strategy implementation for Coca-Coal Company are presented below: 

Information flow 

The Coca-Cola Company has concentrated on developing a structure that enhances and promotes flow of information in a free manner. In addition, in information flow system, the company encourages honest and collaboration among employees and stakeholders (The Coca-Cola Company, 2015). 

Organizational Structure 

Despite the fact that the company’s structure is slightly different in its geographically different parts, the company has a corporate section at the international level. The section is mandated with the responsibility of offering direction and support to those at the regional level of leadership (The Coca-Cola Company, 2019). 

Motivation 

The company’s staff is motivated by following its vision that is instigated by the company’s leadership. In addition, the vision is inspired by everyone. Employees are also given incentives to order to boost their performance and appreciate their efforts. Besides pay and incentives, the Coca-Cola Company also provides its staff with other services and programs such as those that promote well-being. 

Decision rights 

Major decision making in the company is the responsibility of the executive committee. The committee is made of twelve individuals (The Coca-Cola Company, 2019). Decisions regarding the company’s operations are made by heads of the different departments in the company together with staff members. Employees understand the effect of decisions that they make on the success of the company. As a result of defined decision rights, the company rarely releases conflicting information to consumers and the market in general. 

References 

Bassi, L., & McMurrer, D. (2007). Maximizing your return on people. Harvard Business Review, 1-9. 

Estrel, M. (2015, July 22). Coca-Cola boosted by sales of tea, bottled water. The Wall Street Journal . Retrieved from https://www.wsj.com/articles/coke-profits-jump-20-despite-dollar-impact-1437565369 on 26/10/2019. 

Harvard Business Review. (2005).  Strategy: Create and implement the best strategy for your business . Boston: Harvard Business Review Press. 

Neilson, G.L., Martin, K.L., & Powers, E. (2008). The Secrets to Successful Strategy Execution. Harvard Business Review, 82-94. 

Reeves, M., Moose, S., & Venema, T. (2014, June 4). BCG Classics Revisited: The Growth Share Matrix. BCG. Retrieved from https://www.bcg.com/publications/2014/growth-share-matrix-bcg-classics-revisited.aspx 

The Coca-Cola Company. (2019). Retrieved from https://www.cocacolacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2019/Coca-Cola-Business-and-Sustainability-Report.pdf 

Wilson, R. L. (2017).  Principles of business . Ipswich, MA: Salem Press.