Strategic management is the systematic approach to planning and executing a company's path to achieving success while strategic competitiveness is the outcome that a firm achieves as a result of a well formulated value-creating strategy that cannot be easily duplicated by other competitors. These two strategies are crucial in establishing an international business pace and strengthening individual economies. This research seeks to provide insight about the Coca-Cola Company and assess how globalization and technology have impacted the Corporation.
Technology has enabled the Coca-Cola Company to attain cost targets faster hence building a stronger market base worldwide. The company collaborates with other firms to introduce new trends into the market hence boosting the efficiency, productivity, and the quality of it’s products. By using technology, the company can retain it’s market base through strategic competitiveness. "At times, we are not even aware that we have found a strategy that the company can use," (Shell Huang, 2014). Shell, the director of external technology, admits how they develop effective strategies during their market researches. For instance, the latest trend in the company is the printing of customer's names on the plastic bottles and bottle tops of Coke. The trend fascinates and motivates many customers to buy more of the product hence resulting in increased profits for the company. Apart from printing names, they have partnered with companies that provide other services such as communication companies and included internet bundle codes under the bottle tops of Coke. For instance, in East Africa (Kenya) where Coca-Cola partnered with Safaricom and provided 15Mbs for each Coke bottle. This strategy is effective because other competitors may have to spend a lot of resources to duplicate hence providing the Coca-Cola Company with a long-term advantage in the market.
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Industrial organization model and resource based model can facilitate the success of a company if they are spread out in a proper way. Industrial organization model can help a corporation make efficient decisions on the price and output level for it’s market. They define a company’s economic position in the industry and explore the actions and reactions of a real-life business in completion. Resource-based Model explains how unique internal capabilities can help an organization to realize above average returns. The Coca-Cola Company can utilize these models in various ways to increase their profit margin and enjoy above average yields. Since the company is a global organization, it is important that the management board determines a reasonable price for it’s products and the amount of production in particular regions. For instance, the U.S population is larger than the population in Dubai hence the levels of production cannot be the same. The output level in U.S will be higher to satisfy the high demand of the product. Also, the price of the product will depend on various factors such as taxes and production costs between the two countries to ensure customers can afford the prices.
The resource-based model is critical in determining the effectiveness of strategic actions and the external factors affecting business. The Coca-Cola Company can ensure that the uniqueness of it’s products is preserved by training it’s workforce on the production process and remunerating them well to prevent brain drain by the competitors. Some market rivals such as Pepsi can absorb a former Coca-Cola employee to get crucial information about the production steps of the unique brand to imitate them. The company should also consider the bargaining power of suppliers and customers, threat of new entrants, and the threat of substitute products. These factors will guide the management team in making effective decisions and achieve above average profits.
The vision and mission statements influence the overall performance of the Coca-Cola Company in various ways. The company’s mission statement is “To assist our customers, consumers, and employees in surpassing their optimism of the future through inspiration, service, innovation, and making a difference with our refreshments.” The vision of the organization which is to maximize a long-term return and been mindful of the overall responsibilities guides both the team’s behaviors and decisions for the benefit of the consumer and the community as a whole. This is driven by mutual beneficial solutions which result in a win-win situation. The company conducts business through delivering value to all stakeholders hence making it as the favorite brand in the market. These statements ensure that the corporation does business responsibly within the ethical values to facilitate sustainable growth. This ensures that the firm can smoothly operate in future through the foundation that is set.
Coca-Cola Company has introduced numerous refreshment brands as a backup plan for it’s original Coke hence consumers are provided with a variety of products. By offering a variety of refreshment drinks, they narrow the competition since each brand is competitive in the market. For instance, Fanta exists in different flavors such as Black-Current, Pineapple, and Orange hence the probability of a customer to promote the competitors is slim. Also, partnering with their clients such as street vendors, grocery stores, and entertainment joints expand the market. This enables them to review and evaluate their strategies and performance to expand their profit margin. It also assists the company to analyze their competitive position in the market. The organization's decisions are largely influenced by their mission and vision in realigning the business models to achieve it’s objectives. The success of the Coca-Cola Company is attributed to their vision, mission, and values that guide both internal and external operations.
The stakeholders of the business in various categories play a significant role in ensuring the success of the world's biggest refreshment company. These categories are the internal and external stakeholders who fulfill different responsibilities in the corporation. The internal stakeholders include the employees, directors, shareholders, and managers of the company. They determine how the company conducts it’s operations to achieve a mutual interest. A team of well-motivated employees improves the quality and rate of production hence helping the organization to satisfy it’s market demand and maintain it’s reputation. The managers and directors influence the operations of the company to ensure that the objectives are met. This is through decision-making and effective planning within the organization. Shareholders also play a significant role in the company by inducing capital that enables the firm to be fully operational and ensure it’s stability hence retaining it’s competitiveness in the market.
The external stakeholders include the consumers, suppliers, government, and creditors. The consumers are the most important stakeholders in business as they create the demand for goods and services. Purchasing the Coca-Cola brands helps the company to recover the production costs and make profits which facilitate it’s expansion. Suppliers transport the products to the consumers and ensure a steady supply of the products. For instance, customers can easily access the drinks from retail stores and Coca-Cola depots. The government provides a favorable environment to conduct business. For example, flashing out contraband products and preventing unhealthy competition. Lastly, the creditors finance the company in times of financial constraints such as bankruptcy and inflation hence maintaining it’s existence in the market. Therefore, all stakeholders are important to the company through their contributions which enhance the overall performance.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2007). Strategic management: Competitiveness and globalization . Mason, OH: Thomson/South-Western.
C. T. (Nov 3, 2014). How Coca-Cola's Shell Huang and her Team Find New Tech . Retrieved April 8, 2016, from http://www.coca-colacompany.com/stories/cool-hunting-how-coca- colas-shell-huang-and-team-find-new-tech/
