Monday, February 25, 2013

Coca Cola Corporation





Coca Cola Corporation
The establishment of Coca Cola Company has been of immense benefits to the global population because it has taken the leading role in the manufacture and production of the soft drinks. The establishment of this incentive has proven to be extremely ideal because the company has expanded to the international territories where it has continued to supply the market with its soft drink. With the aspects of globalization and increases in regional integration, various companies have expanded to the international territories with the aim of exporting their products and capturing the untapped markets. This consideration is extremely crucial for the organizations because it has an attribute of increasing their profitability. In the wake of the rising complexities of the market, the company has ventured into the establishment of ideal measures of creating money that reflects adoption of ideal investment measures in the market and this has resulted in the investment in the capital market. With the investment of more than $2 billion dollars, the company has been listed as the most profitable soft drink company globally (Comeford & Callaghan, 2011). A part from the activities in the global capital market, the company has ventured into series of advertisements to enable the organization to raise significant amount of money through the establishment of high sales. This incentive has enhanced increased sales for the company because they have ventured in the production of soft drinks and beverages that are sold to the consumers through retail outlets and vending machines. Analysis of the organization has revealed that it realizes significant amount of profits through the sales of drinks thereby leading to and increase in profitability. With the general revenue of $ 46.542 billion, the organization is on an ideal platform to enhance and expand sales across the global markets. Notably, the organization has been able to expand to global nations with the exclusion of North Korea and Cuba (DATAMONITOR, 2011). Over the period, the management of the corporation has instigated measures that are applicable in the establishment of higher profits and increase in the market share and this has resulted in the establishment of additional products to the market. Some of the additional products introduced by coca cola companies to the market include the aspect of Dasani mineral water and minute maid amongst others. These attributes have been immensely crucial for the establishment of profitability because they result in the consideration of increasing the profitability of the organization.
With respect to the development of the organization in 1892, the corporation has continued to experience significant growth through eh sale of the products, the corporation has been able to raise large amount of money in benefits as profit and this has enhanced the growth and development through the various stages f developments. This incentive has proven to be extremely important in the quest to understand the complexities of the organizations (Barney, 1991, Lawton, 2006, Bettis, C, Bizjak, Coles & Kalpathy, 2010). The consideration of understanding the complexities and growth of the organization is aided through the establishment of corporation as it continues with the development. The product life cycles are one of the ideal measures of ascertaining the performance of the corporation because it has the attributes of enhancing realization of the stages of development of the product. This is critical because the amount of experience that a corporation has attained in the market can be easily identified. This consideration is extremely beneficial in highlighting the performance of Coca Cola Corporation because it has the attributes of suggesting the incentives of the organization towards development. Since the establishment of the corporation in 1892, the corporation has continued to experience expansion both internally and in the external markets through he attributes of regional development and globalization. The consideration is ideal because it has enhanced development of the corporation through the stage of development up to the final stage of product life cycle. Currently, analytical reports have stated that coca cola is in the final stage of maturity that is extremely crucial for the organization.
Analytical records have stated that there are four distinct stages of development for the products of any organization and these stages represent the crucial aspects of the corporation. In this attribute, the initial stage is introduction and it represents the modes of developments that an organization has undertaken. The introduction stages represent the introduction of the corporation into the market and in the case of coca cola, it happened in the years of 1892 (Kuijper, 2010, Bettis, Bizjak, Coles & Kalpathy, 2010). The preceding stage for product life cycle is the consideration of product development and this involves the establishment of ideal features in the market that enhances development and performance of the product in the market. Majority of the businesses conduct the attributes of development through the consideration of this stage. This stage is characterized by rising prices and product development.
Analysis of the operations of Coca Cola Corporation has ensured rapid development towards the attainment of maturity stage. Currently, Coca Cola Corporation and its products are experiencing maturity in the market and this follows the series of development that the organization has initiated in the corporation. In view of this, the corporation now under standards the complexities of the market because of the significant amount of years of operation and this stage is characterized by reduced increase in the profit margin and also by the reduction in the value of sales (Baghai, Coley, White, Conn & McLean, 1996, Kahle & Shastri, 2005). Notably, this is the longer lasting stage and this leads to the demonstration of maturity in the operations and in the understanding of the complexities of the market. The expansion and development of the company towards the establishment of maturity has been aided by the introduction of a wide range of product portfolio that has resulted in the establishment of higher profits. The consideration of this attributes are beneficial because it has the attribute of increasing the profitability of the organization. With the increase in profits, the consideration of increasing the scope of product portfolio has been enhanced because it has the attribute increasing the sales scope of the organization. Sales are one of the channels of generation revenue for the corporation and it must initiate ideal measure of increasing sales and this is largely through the consideration of increased product portfolio.
The establishments of the product portfolio models are based on the consideration that profitability of the venture increases with the increase with the increase in the market share and on the same not, reports have highlighted that efforts of improving the market share have short term costs but are immensely beneficial in the future because it influences the attributes of market share and profit (Heinz, 2010, Allen, Walker & Brady, 2012). Furthermore, the establishment of product portfolio management results in the establishment of product differentiation which is considered to be beneficial for the corporations with large shares of the market. Therefore, the consideration and analysis of product portfolio leads to the establishment of increased profitability.
Over the period, Coca Cola Corporation ha invested significant amount of resources in terms of time, human capital and financial capital amongst other to ensure that they increase their share in the market. To date, the corporation is listed as the global leader in the production and sale of non-alcoholic drinks and this has enabled the company to control significant share of the market. In the light of this revelation, the competitors have emerged in the market with the introduction of new products but the existing degree of customer loyalty is considerable higher. In reality, Pepsi has been one of the significant competitors in the market but the production mechanisms adopted by Pepsi ha ensured that coca cola continues to reign in the market with many buyers and sellers. In this regard, the establishment of new entrants of competitors and participants is considerably higher as opposed to the attributes of market influence and this has resulted in the establishment of customer loyalty (Edvinsson & Malone, 1997, Henry, 2007). Over the period, various companies have significant amount of time and resource to establish the aspects of loyalty and this has enhanced their survival and performance because it has the attribute of enhancing development of the organization. Therefore, Coca Cola Corporation should respond to the activities of the competitors by enhancing campaigns and advertisements that will result in the enhancement of more sales.
Analysis of the financial status of the organizations is extremely beneficial in the aspect that enhances development of the factors production and further development of capital. The consideration of these factors has helped in the enhancement of development of the two organizations because it has consideration for the strategies and structures adopted by the organization. The establishment of these factors provides ideal analysis of the organization and provided ideal information to the policy makers thereby helping the changes or organizational policies. Brief analysis of the current business model adopted by the organization shows that establishment of product portfolio is significantly enhanced and this incentive is extremely crucial because it has enhanced organizational profitability (Xiong & Bharadwaj, 2011). Therefore, in view of the developments attained through the use of these incentives, the organization should maintain the usage of these structures because they have an effect in the establishment of profitability.
Over the period, analytical results have noted the corporation as an ethnocentric multinational corporation and this means that the company deals in the same of products. The organization has ideal products that sold in the local market and in the international market and this consideration has helped the organization to attain the tight controls over its operations that is monitored from the head office. Additional information about the organizational structure states that the company has branches in all the continents and each continent has an appoin3ed president to oversee the activities of the companies. In this regard, the corporation locate din the united states in a different culture and structure with the international brands ('Coca-Cola Enterprises, 2011, 'Beverage Industry, 2009). This aspect of management is ideal because the international boundaries have different aspects that have resulted in the reduction of performance. On the same note, the prevailing organizational structure adopted by the organization is ideal and should be changed because it has helped the organization in experiencing significant growth. Another significant aspect that has necessitated development of the corporation is the aspect of adopting the attributes of modern technology. Adoption of this technology has revealed the technological advancement results in the establishment of ideal machines and equipments that will enhance development. Over the period, technological advancement has been used by significant number of companies to reduce costs of production. The realization of efficiency is one of the attributes that the management of Coca Cola Corporation has adopted and this consideration has enhanced significant reduction in the costs and further enhanced increased profitability. Analysis of the operations the company has revealed that there are business model and strategies that have been of crucial benefits to the organization and this includes the formation of ideal management team with the capacity of enacting measures to be consider on both regional and international consideration. This establishment impacted on the relationship of the organization with the avenues of business by enhancing the cognoscibility in the condition of the business. In this aspect, the strategy adopted by the organization cab e stated as think- local and act global. This incentive is crucial for the management because it has given way for the aspects of technology to be incorporated in the management scheme of the organization to enhance the aspects of operations. Finally, Coca Cola Corporation has continued to be extremely profitable since the invention in 1892. Profitability of the organization can largely be attributed to the development of various product portfolio and the establishment ideal sales incentives (Comeford & Callaghan, 2011). These aspects have ensured the corporation is listed as the global leader in the sale of non-alcoholic beverage to all the nations. Furthermore, adoption of ideal organizational structure has helped the corporation to develop towards the maturity with the consideration of product life cycle.











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