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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