Coca-Cola is my organization of choice in drafting an individual business report. Coca-Cola company is the world’s biggest and most successful refreshment company with a market portfolio of over 3000 drinking items. This beverage company was established on March 7, 1944, by a pharmacist named John Pemberton. The name and logo Coca-Cola brand was given by Mr. Pemberton’s accountant which is still used to date. Coca-Cola company later became a property of Griggs Candler. It is through Griggs outstanding marketing ideas and strategies that the beverage company has established itself to be the most decorated soft drink company of all time (Gilhuly 2014).
Coca-Cola’s focus on beverage production and through its strong advertising strategies has empowered the overall objective of the enterprise to meet the dynamic and ever-changing consumers’ preferences beverages. The quality of the Coca-Cola company goods and services gives the enterprise the cutting edge in the management framework thus it’s global recognition. The company exists in more than 300 counties earning it the recognition of the world’s leading beverage supply company (Gronholdt 2000).
Coca-Cola not only produces beverages but also drink bases and syrups in the soft drinks competitive market. The major competitor for Coca-Cola is Pepsi although the abundant advertisement of the company makes it more successful and earns consumer recognition than Pepsi. In an effort to maintain its client base, Coca-Cola has invested heavily on the advertising strategies through social media, print, TV promotions, workshops, sponsorships, and bundle plans thus winning a large number of consumer loyalty (Gronholdt 2000).
Coca-Cola Company has a reported estimate of 94,800 employees with more than five hierarchical levels of deployment. Like the many corporations, Coca-Cola company observes the three elements of sustainability which are very crucial in the running of a company. The economic, social and environmental aspect is the three sustainability elements that Coca-Cola implements. It engages its staff in the implementation process of the three sustainability elements towards achieving green economy which is one of its major targets (Gilhuly 2014).
Coca-Cola sets up initiatives towards corporate social stance thus improving the lives of its consumers, workforce and the society as a whole. This is made possible by the company dedicating 1% of its annual income to help the community through engaging itself in the charitable programs worldwide. The company has also enhanced its stance towards the environment by supporting proposals that are aimed at protecting and conserving the environment with them being the leaders of the movement by producing glass products that are recyclable (Lindstrom 2006).
Strength, Weakness, Opportunity, and Threats (SWOT) Analysis of Coca-Cola Company
The SWOT analysis helps the Coca-Cola Company in policy formulation process and thus acting as a guiding principle in resource allocation. The SWOT analysis is the backbone of the strategic plan that the firm is implementing and thus it’s unbelievable returns in the marketing environment. The SWOT analysis employs situational analysis thus formulating ways of reducing production and sales cost together with improving the overall organizational performance (Keller 2000).
The SWOT analysis also adds value to the produced product through the different marketing strategies that Coca-Cola use is what makes them successful in the beverage market. The areas that require improvement are identified and the necessary action is taken thus improving the company’s image. SWOT analysis is thus very instrumental in companies especially in formulating desirable management strategies thus minimizing the organizational problems. The institutional risks are also identified and the mitigation measures are taken thus impacting the growth and performance of the Coca-Cola company. The following is the SWOT analysis of Coca-Cola Company (Keller 2000).
Strengths
Among the strengths that the Coca-Cola company has included:
• Brand name- Coca-Cola brand name is highly prominent and ranked among the most recognized beverage brands worldwide. Coca-Cola brand has helped the company to gain global recognition through luring consumer decisions thus the high consumption rate.
• Wide market- Coca-Cola company is the world’s leading beverage supplier and through its marketing ideas and strategies it is capable of convincingly reaching out to more than 300 countries in the world. The wider market has enabled Coca-Cola to establish itself to become the most successful beverage company of all time.
• Diversified beverage brands- Coca-Cola company has more than 550 brands in the market making it successful throughout the world by increasing the global market share.
• Dynamic and strong marketing strategies- Coca-Cola company employs different marketing strategies to maximize its sales volume through print, social media, broadcast platforms, advertisements, workshops, promotional shows, and sponsorships. This strategy reaches its target consumers in the different countries hence its global recognition.
• Consumer loyalty- Coca-Cola has established a strong consumer loyalty thus making it one the best-selling beverage company in the world. Consumer loyalty is a result of the numerous advertising strategies that Coca-Cola company has heavily invested.
• Corporate social responsibility-increased levels of social responsibility by Coca-Cola in the society has helped the company gain far much community recognition. This has helped the company to engage in charity funding and sponsorship of football programs such as World Cup.
• Bargaining power- The company’s bargaining power in the beverage industry is huge, therefore the total control over suppliers together with the overall enjoyment of economies of scale in return.
Weaknesses
All companies do have weaknesses despite all the efforts that are put towards minimizing such shortcomings. Among the weaknesses that Coca-Cola company has had include:
• Overdependence on beverages- Unlike other beverage companies, Coca-Cola has specialized in beverages only thus narrowing down the type of products that the company is producing. A good example of a beverage company with diversified production of products is Pepsi which not only produces beverages but also offers the supply of snacks.
• Health risks- Continuous use of beverages develops addiction which is considered unhealthy for a person’s well-being and thus the frequent use of Coca-Cola products create the health problem to consumers. Carbonated drinks are also not healthy while consumed in huge quantities.
• Increased debts- The ever-growing demand for Coca-Cola products has inspired the company to introduce new products under their brand name such as Minute Maid. This has been made possible with the company lending huge sums of capital to acquire the new brand in the market thus increasing company’s debts.
• Environmental fears-Despite Coca-Cola company implementing the environmental aspect of sustainability, it has increased concerns on the massive environmental damages that some of its products are causing.
Opportunities
Coca-Cola company has created numerous opportunities that have helped the company maintain its global recognition up to date. Some of the opportunities include:
• Exploitation of the beverage market that has helped them introduce new brands such as zero sugar Coca-Cola and Dasani prior to satisfying their increasing customers.
• The use of aggressive marketing strategies has enabled Coca-Cola company to retain its market share in the beverage market. This has been made possible through the market diversification strategy that Coca-Cola company is using in the market.
• Buying competition- Coca-Cola company’s size gives it an added advantage towards buying competitors product thus the act of ‘selling patriotism.’
Threats
Among the threats that Coca-Cola company is experiencing include:
• Fluctuations in foreign exchange- Coca-Cola company operates in different countries which use different currencies. This means that the revenues are paid in the local currencies and upon conversion to US dollars, the exchange rate fluctuations may affect the total returns of the company thus a threat.
• The market competition-The major competitor of Coca-Cola products is Pepsi. Pepsi brings competition of beverage products to Coca-Cola due to its growing product diversification.
• Negative publicity-The health-related issues of carbonated drinks which are related to calories have had numerous lawsuits thus negatively impacting Coca-Cola products in terms of consumption.
Coca-Cola Management Structure
Coca-Cola Company has a vertical hierarchal management structure. The company’s head office provides the overall direction and command to the regional structure. Decision making is done by the company’s Executive Committee which has a chair that is the head of the company and all board meetings. The chair is also the CEO of the company and the senior decision maker in the company.
Coca-Cola company management structure has a marketing director, public affairs director, finance director, and all the supportive staff members. With the management hierarchy being long, communication is very critical and thus all the information in the different supply regions are expected to deliver in the corporate headquarters which is in the U.S. below is Coca-Cola company management structure chat (Gilhuly 2014).
Coca-Cola Company like other corporations maintain the required business ethics and corporate social stance. The company requires that all the business ethics be followed by all the staff members in their respective workplaces regardless of the employee position. This creates an exceptional and environmentally friendly atmosphere in the company hence the company achieving its overall objectives. Observing of business ethics is also the catalyst for the company’s success through earning consumer loyalty and global recognition in the beverage market (Werther 2005).
The corporate social stance of Coca-Cola is directed mostly to the community through sponsorship and charitable programs. Coca-Cola company has strong initiatives that cater to the community by improving the quality of services to its employees, customers and the society as a whole. This is made possible by the company dedicating 1% of its annual incomes to the community through initiatives that are aimed at strengthening the society. Such initiatives include infrastructural development programs which are charitable and thus Coca-Cola company giving financial support through active involvement in the programs (Werther 2005).
Conclusion
Coca-Cola Company is the leading beverage supply company in the world. The company has established itself prior to the effective market strategies it has employed in its managerial stance. Its massive investment in advertising its brand has made the company so successful thus maximizing its benefits thus enabling it to take control over the beverage market in the world. In addition to its success, the company has a hierarchical managerial structure thus it’s stability in management issues. Coca-Cola company ensures that its employees ensure business ethics in their workplaces thus smooth running of the company.
References
Gronholdt, L., Martensen, A. and Kristensen, K., 2000. The relationship between customer satisfaction and loyalty: cross-industry differences. Total quality management, 11(4-6), pp.509-514.
Gilhuly, J., 2014. Coca-Cola Organizational Complexity. Retrieved July, 16, p.2014.
Keller, K.L., 2000. The brand report card. Harvard Business Review, 78(1), pp.147-158.
Lindstrom, M., 2006. Brand sense: How to build powerful brands through touch, taste, smell, sight and sound. Strategic Direction, 22(2).
Werther Jr, W.B. and Chandler, D., 2005. Strategic corporate social responsibility as global brand insurance. Business Horizons, 48(4), pp.317-324.
