Managing Capability of Coca-Cola Company
Introduction
Coca-Cola Company is involved in the distribution, marketing and manufacture of the nonalcoholic syrups and beverage concentrates worldwide. Its primary product is the coca-cola which is a type of carbonated soft drink that had been sold in restaurant, to the stores and to the vending machine to more those 200 countries and it is commonly known as Coke. The company is commonly offering still and sparkling beverages. The sparkling beverage that the company is offering includes ready to drink and yet nonalcoholic beverages with carbonation as the carbonated water, flavored water, and the energy drink. There are still beverages that includes the nonalcoholic beverages and without the carbonation which includes the non-carbonated water, flavored water, teas, juice drinks, and the enhanced water. The company is also offering the fountain syrup, concentrates, and syrups which include the sweeteners and the ingredients. It also markets its nonalcoholic beverages under the Sprite, the Diet Coke, Fanta, and the Coca-Cola. The company usually sells its finished beverage products to the distributors and the canning and bottling operators, fountain wholesaler, and the distributors. The company had founded in 1886 and it is mainly base in Atlanta Georgia (Yahoo Finance, 2008).
The company’s mission is for the refreshment of the world in not just the body but for the heart and spirit well. It also wants to inspire optimism with the aide of the actions and brands, and to create the value which can make difference in engaging everyone. The company’s vision is for the people to have the great work and to make a difference by being a responsible citizen. It also forecasted of anticipating and satisfying the beverage brand in the needs and desires of the people while winning and nurturing the mutual loyalty of the people. The company is also optimistic in maximizing its return to the shareowners while being aware to their entire responsibilities. In this regard, the company is aware of their values which are having the courage in shaping the future and being committed by the mind and the heart. There are also values of being real as their integrity and open for collaboration. The company is also aware of innovation and most importantly their main focus is the quality of the entire company (Coco-Cola Company Corporate Site, 2008).
Strategic Capability of Coca-Cola Company
Strategic capability is being able to think imaginatively regarding the direction of the organization or the part of the organization might go. This is usually concerned in taking for the long term view of the organization or what will be the future of the organization for its continuing success. As defined by Rosemary Harrison, the strategic capability is involve in choosing for the most of the appropriate long run goals, vision, and the objectives for the enterprise. This is also involves in managing and determining the allocation and courses of action which are necessary in achieving the goals. This strategy also ensures and selects the strategic development assets for the assurance of the continued business profitability. In this manner, this organizational strategic capability mainly depends to the ability of the managers (Armstrong, 2004, p. 176).
Going Global – this is the major strategic capability that Coca Cola Company had done in diversifying its business. In this regards, to be one of the multi-nationals company that operates globally, it means that the have the only real global players in the global level. The shift in the global power will be the adaptive capacity of the company which had offered. According to the CEO and Chairman of Coca-Coca Company, there are four forces that prevail in global into global move. These include the desire for the determination, the outstanding democratic capitalism, the success of the institution, and the influence of the regulation investment. These factors must meet the needs of the people. In this manner, the company manager believes that this shift can lead to the better future of the company (Rosenau, 1997, p. 444).
In this global strategy, the company had face circumstances when bringing the American product to the world which can lead to the disaster for the company. This move can lead to the imperialism and colonialism for the other country that can wage for the American corporation in threatening the homogenous entity. In these scenarios, the company begun to think of the strategy that will support by most of the consumers around the globe and that was to localize the product. This going native move can tailored the drinks in every individual country. This had also been parted down by CEO Douglas Draft which can recognized the demand in breaking the traditional way of service and expand the product line of the company beyond the carbonated drinks. Draft had learned in shifting the line of products of the company as in the teas, juices and waters so that coca cola can be more responsive in the local markets. The “think local, act local” motivates Draft in diversifying the business and goes into the flow of innovation. The strategy also lead to the satisfying the consumer’s choice and wants in meeting the competition from the juices, sport drink and to the water. In the said move, for the year 2001 alone, the company made 15 new drinks for the entire 45 Asian markets and the localization can be the key for engaging into diversification and to the emergent marketplace. In this global invasion, the company had recognize its products not just for American product but for the localize product as well. This also led of having the higher income return and can make the business to be globally competitive for the long term manner. The other strategic capability of the company manger is innovation for the products, the acquisition and emerging, and better marketing (Amis and Cornwell, 2005, p. 73-75). The company’s benchmarks are to have the competition in the greater market and to have a market of globalization with the reduction of entry barriers. It has also benchmarks on labor productivity
The Resources of Coca-Cola Company
a. Value
The company also owned 33 operated beverage concentrate and syrup manufacturing plants which are located in the entire world. It has also hold majority interests under the accounting rules of 34 operations and 80 primary beverage canning and bottling plants which are located outside the United States. The company has also 4 facilities of bottled water and leases also the same facility to United States. The company also owned the Fifth Avenue in New York which has approximately 315,000 square feet. The other additional leased and owned real estate in the whole world are using by the company in bottling operations, to office space, retail operations to the warehouse. The management is optimistic that the facilities are enough to the production and can utilize to the past experience. On the other hand, they are also open for the additional facilities and personnel as needed for the expansion. The company also generates income, revenues, and cash flow through selling and manufacturing the beverage syrups and concentrates and some of the finished goods (Coca-Cola Company Corporate Site, 2008).
b. Robustness
Including in the tangible assets of the company are the authorized canners and bottlers that had been combined by the syrup and to the concentrated sweeteners so that it will have to produce soft drinks. The soft drink which had been finished are packaged to the authorized containers that had bears its trademarks as the cans and the refillable and nonrefillable plastic and glass bottles which followed in selling to the retailers. The major materials of the business of the company are non-nutritive and nutritive sweeteners. It has also no experience of any difficulties in acquiring the nutritive sweeteners. The high fructose corn syrup had purchase with the assistance of the Coca-Cola Bottler’s Sales & Services Company. In general, the raw materials are available readily from the numerous sources which is also the reason for the company of not to experience any trouble in obtaining the sweeteners. This will build the strong foundation of the company in achieving its goals and in competing globally.
c. Parity
Coca-cola is an active member of business community which works personally to the local individuals, governments, and merchants in order to improve the prosperity and health of the local environment and economy. The company also has the responsible marketing that can recognize about the concern of the nutrition of the child which is a global policy. The company also supports the schools in the communities which can help in encouraging the students to have healthy lifestyle.
d. Non- Substitutability
The company’s intangibles are the trademarks which are being annually tested and determined so that it can have the indefinite useful. The trademark is also unique for the company and can also serve as one of its key competencies. The goodwill and impairment value are measured which includes the analysis of cash flow, independent appraisal and the estimation of the sales of proceeds where the company had been recorded million of intangible assets in the year 2005 and are being related to the trademarks sold in the Philippines. In 2004 the company charges of related intangible assets of 4 million that relates to the franchise of CCEAG of the operating segment of European Union (Ibid).
The Threshold Capabilities of Coca-Cola
From the start the Coca-Cola Company had been planted its brand name in its own field and built its brand image with dignity and integrity. From the history, it rebound the greatest racial discrimination in the U.S. law suit and had reinvented it image to become the leader of national diversity. It had also built its certain and sustainable commitment for the people, to the countries and to the world. The Coca-Cola Company also has the unbiased retention of in both the management and to the work force. This means that the retention is across to all level of races and there is no discrimination occurs and simply the leader of Human Capital. Traditionally, the company has the anchor bottlers that are efficiently well-capitalized and large firm to the committed growth of Coca-Cola. These are also been demonstrated to the Coca-Cola by having the team of strong management with the capability of managing the operations of bottling to one or more countries. These are also been provided benefits financing growth of the company which takes the equity of the firm (Rothacher, 2004, p. 77).
The creation of the limited liability company with partner to P&G can have the state-of the art capabilities for the company’s international merchandising, distribution, and customer marketing. The innovation of the new products and nutritional beverages can strengthen the creation of creation better products to the company (Mourdoukoutas and Papadimitriou, 2002, p. 144). This only shows that the company is not afraid in trying to diversify and innovate its products to meet the international standard.
The Core Competencies of Coca-Cola Company
The company had recorded it brand for continuous diversification and enriching its products in the international market. In this case the company has the certain key competencies over which are the primary factors in it continuing to compete in the global market. First and foremost, it has excellent promotional strategy as creating many souvenirs for its customers and very appealing advertisement. Regarding the taste, it is widely accepted by customers because of its uniqueness. The secret formula for production is the asset of the company but most of its imitators failed to in providing the same taste as of Coca-Cola. The company usually has the contracts with the big restaurant as McDonald and it has also broad coverage. It has also the diversified production line of products for the customers’ wide options. As compared to its major competitor Pepsi, the market share of Coca-Cola is much higher that implies that most of the customers prefer Coke as their drinks. The company also itself to the partnership with the meaningful organizations as the UNAIDS, or the United Nations agency that fighting against AIDS and HIV that gave much impressions from the public wherein most of the consumers are purchasing the products. The Coca-Cola products has reasonable prices which can accepted by most of the lower and middle class people and easily purchase in many place as in the schools and in the supermarket (Essay Info, n.d.).
The Value Chain Analysis for Coca-Cola Company
The suppliers are the partners of the company that supplies the system with the materials which includes the packaging, the ingredients, goods and services and machinery. All of the direct and authorized suppliers need to comply with all of the respected regulations and laws which include the forced labor, the child labor, freedom of association, abuse of labor, and the collective bargaining. This means that all of the agreements with the suppliers are required to comply with the Supplier Guiding Principles.
The customer of the company includes the large international chains of restaurants and retailers which includes the independent businesses. Some of the customers are the major corporation which has the name as familiar to Coca-Cola and others are the local pushcart vendor and the corner market. The company is open for all types of customers which can help them n growing the customer’s business and in return the company’s growth. The company serves its customers trough the aid of the team of account management that can provide them tailored and services their needs.
In the Europe, Africa, and North America, there are Coca-Cola Retailing Councils that provides the research regarding the issues that affects the retail of the industry. Through the increase complication of the retail environment, the company works to the customers for the improvement of the marketing shopper and to the collaboration of the supply chain which needs for the requirements in the acceleration of the innovation so that it can provide highly selected options on the line of beverages for every customer and to every shopping trip.
The company provides the support for the smaller customer in helping them to grow its business more profitable and efficient. The company also works with the customers so that they can broaden the range of the beverages they are offering and can ensure the beverage responsible market (Ibid).
Assessing the Performance of Coca-Cola
Through the use of the balance scorecard, the performance of Coca-Cola can be measured as:
In this regard, through the managing capability of the board of managers, their financial perspectives are measured through the aide of its operating income, economic value, added and the return of capital employed. The customer perspective is measured with the retention of the customer and their satisfaction as well as the market share to the segment which is being targeted. The business process can measure through the quality, cost, and throughput. The growth and learning are assessed with the satisfaction of the employees of Coca-Coca Company, their skill sets and others.
The Contribution of the Manager in the Company
In any business, the manager is the one that controls the movement of the business and its foundation. For the Coca-Cola Company, the manger made possible is managing the investment and the flow of the budget as well as the product proper selection of the strategic movement that had done in the diversification process. It is also the one that had responsible in oversaw the entire operations of the company around the globe. The board of management or most specially the managers are the people who oversaw the interest for the long-term health as well as the overall success of the financial strength and financial business of Coca-Coca Company. The board of managers also served for the major decision making body of the company. Behind the success of the company are the board of directors and their management capabilities in order for the company to have the sustainable growth. This new milestone growth had led by the managers’ idea on the revitalization of the trademark of Coca-Cola. There are also exciting joint ventures and acquisitions which led to the betterment of the string financial status of the company. The group of the managers also made moves to their product innovations which can lead to marketing initiative that resulted to the increase number of sales for the past years. The new partnership is also one of the reasons that advance the global citizenship of the company. The increase earnings of the Coca-Cola Company to .57 per share or 19 percent for 2007 and .9 billion or grew of 20 percent of its revenues was made by the strengthening of the sparkling portfolio of the company in its new brands while expanding the still portfolio with the innovation and acquisition made by the board. Aside from those cited above, the company managers are also the one who thought for the improvement of the consumer marketing capabilities, the franchise leadership and the commercial leadership. The creation of the more sustainable future with the aide of the effective energy, operational practices and water are also the key factors from the managers’ effort to the company’s success. Regarding the future plans of the company, the board executed five major strategies as the growth for the sparkling beverage leadership, the leverage balances geographical portfolio, the rapid growth of still beverage, the strengthening of the capabilities of Coca-Cola System, and the acceleration of the global innovation pipeline (Coca-Cola Company Corporate Site, 2008).
Conclusion
The management capabilities of the managers of Coca-Cola Company are the key competencies of the company in going to the peak of their success. In line with this, these abilities of the management led to the long term effect of the company that had put it on the top. These holds true for the greatest asset of the company which are the experienced and talented people all over the world. This also indicates that the ultimate goal of the company is to create lasting and stronger performance.
Due to these management capabilities, the company is expected to have a long term success by have the immense opportunities. The company is expected to have the growth in the economy and it can be 0 billion in it total revenue. This means that the company is aware that there are many opportunities existing and awaiting for them. The management capability is the foundation of all of the success of the Coca-Cola Company which brought the company to diversify globally and to be internationally which until know has experiencing by the company.
Bibliography
Amis, J and Cornwell, B 2005, Global Sport Sponsorship, Berg Publisher, United Kingdom.
Armstrong , M 2004, How to be an Even Better Manager, Kogan Page, United Kingdom.
Coca-Cola Company 2008, Yahoo Finance, viewed 23 April, 2008, http://finance.yahoo.com/q/pr?s=KO.
Coca-Cola SWOT n.d., Essay Info, viewed 23 April, 2008,
http://essayinfo.com/sample/essay/914/2/
Coca-Cola Company 2008, Coca-Cola Company Corporate Site, viewed 23 April, 2008,
http://www.thecoca-colacompany.com/.
Mourdoukoutas, P and Papadimitriou, S 2002, Nurturing Entrepreneurship: Institution and Policies, Greenwood Publishing Group, USA.
Rosenau, J 1997, Along the Domestic-foreign Frontier: Exploring Governance in a Turbulent World, Cambridge University Press, United Kingdom.
Rothacher, A 2004, Corporate Cultures and Global Brands, World, Scientific, New York.
Credit:ivythesis.typepad.com
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