The Mission Statement Of Coca Cola Company

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02 Nov 2017

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The mission statement of Coca-Cola Company is to refresh the world, to create value and make a difference. Beside from that, the company mission is also to inspire moments of optimism and happiness.

Vision Statement of Coca-Cola Company is based on 6Ps. It included people, portfolio, planet, profit and productivity. People shows that the company be a great place to work where people are inspired to be the best they can be. However, portfolio means bring to the world a portfolio of quality beverage brands that anticipate and satisfy people’s desires and needs. Planet that shows in the vision of company means be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit means to maximize shareholder’s long term return while being mindful or the company overall responsibilities. Lastly, Productivity is means the company be a highly effective, lean and fast-moving organization.

Political

Federal regulations prohibit Coca Cola Company from bidding for Cadbury’s carbonated soft drink business.

Due to the obesity issues among youth, many states of countries have bans the selling of some soft drink brands in public schools.

The use of some ingredients in Coke products may be hazardous to one’s health and regulation in United Stated may soon require warning labels.

Economical

The rising cost of raw has influence the Coca Cola Company.

Coca Cola Company has used a system to purify the water due to the limitation of water in some places and causing the manufacturing cost to increase.

Social

The United States experiencing a serious problem with obesity because of the sugar-based drinks.

Bottle tea is one of the fastest growing drinks in the industry.

The trend toward healthier eating and drinking will hurt sales of Coca-Cola Company’s traditional sugar and sugar-substitute-based drinks.

Technological

New ways for Coca-Cola Company’s product to reach consumer is by introduced general vending machines all over the world.

Legal

Coca-cola Company requires suppliers, bottlers and partners to a compliance with the rule and regulation, such as prohibit discrimination, protect employment, antitrust law.

Environment

Recycle water use for beverage manufacture processes

Packaging of Coca-Cola Company’s product are using plant-based material, it can renewable, lower-carbon plastics by using plant-based material.

The company using the slingshot water purification system to boils and evaporates dirty water source, for example rival and ocean water.

Coca-Cola Company’s main rival is a Pepsi company with two fastest growing categories of product which is water and sport drink. Beside that Pepsi Company’s snack division has succeeded in these health-conscious times. Others than Pepsi Company, Groupe Danone is also one of the competitor of Coca Cola Company which it sells flavored waters and focuses on health-conscious consumers.

Pepsi Company is proactive to develop valuable expertise and capability. Pepsi Company has a tailored brand that have are very successful in different countries.

In beverage of industry, the barriers to entry the industry is easy. There are many new brands of beverage enter into this industry and offer lower prices than Coca Cola Company’ Products. But at the same time, Coca Cola Company has many types of brand and available over 200 countries. The strong brand preferences and loyal customers of Coca Cola Company are not likely to change or try a new brand of beverage.

Substitute products are readily available and attractive priced. Pepsi Company has a comparable and better performance features which Pepsi company‘s portfolio including the number one water brand, the leading sports drink brand Gatorade and their snack products.

Another Competitor of Coca Cola Company is Groupe Danone, They are selling falavoured waters and focuses on health-conscious consumers and continue to add new drinks in different markets, and has achieved a number two ranking in the French low-calorie segments.

Meanwhile, Coca Cola Company does not have any special flavor or products.

Based on the case of Coca Cola Company, the few large suppliers are the primary source of the ingredient of the soft drinks. The rising cost of raw materials such as corn, oranges, and fuel or electricity has hurt the beverage industry.

Others factor that affect the suppliers’ bargaining power is shortage of supply. Prices of corn increase because of the growing demand for ethanol. Besides that, price of orange juice increase more than 60% in 2006 due to hurricane damage in the state of Florida.

Coca Cola Company utilized the system to purifying the water and causing the increase in manufacturing costs. It is due to the limitation of water.

Due to the healty issues and serious problem in obesity raised by the sugar-based drinks, people are more concerning toward more healthy eating and drinking. It will hurt sale of their traditional sugar and sugar-substitute based drink. The increasing numbers of consumer starting to drinks more on healthier drinks instead of soda products.

Lastly buyers are well informed about the seller’s product will increase the pressure on buyer’s bargaining power. Soft drinks are ban in selling in the public school in many states of country due to obesity issues among youth and the use of some ingredients in coke products may be hazardous to one‘s health. The regulation may required warning labels.

 

Strategic Priorities

Objectivities

Measures

Targets

Initiatives

Financial

Profits

Maximize Shareholder’s long term wealth’s

- volume growth

- ROE

- ROA

- Net profit income growth

- dividend growth

Doubling

- Promotion and marketing programmed

- significant equity method investment

Customer

Portfolio

Planet

- bring the quality beverage to satisfy people's desires and needs

- be a responsible citizen, by helping on building and supporting sustainable communities

- beverage choices

- life quality

- beverage necessary

- more variety product

- develop more healthier beverage

- innovative new vending machine

- distribution system and bottler's agreement

Internal Business Process

Partners

Productivity

- encourage a winning network of customers and suppliers, to create mutual, enduring value.

- be a highly effective and productivity, and fast-moving organization.

- new product

- bottlers

- competitors

- enhance the profitable

- leading industry

- The coca cola safety management system (TCCSMS)

- Acquired more brand

- bottler's agreement

Learning and Growth

People

-Be a great workplace where people are inspired to be the best.

- Quality of services

- new technology

- effectively fully use of human resources

- VIEs(variable interest entities )

- diversity education and training

Value Chain Activities is to divide a firm’s operation into specific activities. It’s grouping the activities in to 2 categories which are primary and secondary activities.

Coca Cola Company requires the company or customers that doing business with Coca Cola Company follows a strict guideline for quality control. The Coca Cola Company required the supplier to applicable to the local laws and regulations. Supplier of coca cola are strictly prohibits against child labor, abuse of labor and overtime work of the labor. Besides from that, supplier may ensure the proper health and safety conditions to employees.

Coca cola company working with their partners to reduce the effects at every level of the manufacturing process to reduce the ownership interests in bottlers and or sell the company’s interest to investee bottlers.

Coca Cola Company own, lease and operate over 800 plants around the world. They have more than 9million of vending machine worldwide. The company’s product used to reach consumers through vending machine, grocery stores and also the fast food restaurant.

Coca Cola Company has over 3500 beverage products such as juice, sport drink, energy drink, tea and coffee. They are most on developing new brands and product, changing the design of packaging and also having a new advertising campaigns.

Coca Cola Company has a wide range of customer and building a lasting and more deeps relationship with its customers. Therefore the company established Customer Development and Training center to provide support, training and knowledge to their customers. They help the customers business more profitable and efficient. It also motivates their customers. Besides that, coca cola company working with their customer to ensure the beverage are market responsibility, and also broaden the range of beverage the company offers.

Coca-Cola Company is responsible for customer brand marketing initiative. They manufacture and distribute the syrup to the bottling operations. Bottling partners manufacture, package, merchandise and distribute the final branded beverage to vending partner and coca cola’s customers. Coca-Cola Company is increasing in its bottling investment, front end capability, equipment and training of the employee and customers.

Coca-cola company has operate over 126 years and available at more than 200 country. In order to maintain its brand name in the global market, coca cola had keeps its structure functioning at a superior level. Coca-Cola Company divided its operation. The operating segments include Africa, East and South East Asia and Pacific Rim, Latin American, North America, North Asia, Eurasia, European Union and also bottle investment. Beside from that, Coca-Cola Company has varying of organizational structures. It included management structure, functional structure, divisional structure and also networks structures.

Coca-cola Company ensuring that the worker or the employees of the company are protected. The company avoids and prohibit of abuse of labor, overtime and child labor.

Coca-cola company’s customer development and training department provide training and support to the wide range of customer to help in their customers’ business.

Coca-cola company partnership with Research and Development Company to address cleans water issues. It helps Coca-cola company to replenish 100 percent of water used in its beverages and production.

Coca-cola company outsourcing by implementing control mechanism to its suppliers. It is to assess the Coca-Cola Company’s suppliers by having interviews with contact workers and employees.

Resource-Based View (RBV) is a method of analyzing and identifying a firm’s competitive advantages based on it resource. The 3 resources are tangible resources, intangible resources and organizational capabilities.

Coca-Cola Company possesses and manages a lot of physical resources such as machinery, plant and equipment. Coca-Cola Company self-owned production plant and less lease or hire purchase. It shows that the company is manages to control their production cost.

In addition, Coca-Cola Company is investing in bottling. By investing in the bottling, Coca Cola Company gain a competitive advantages by having a better control on it cost and reducing in the production cost.

Beside from that, Coca-Cola Company has strong financial position. It has shows that it has stable financial resources to carry out the production process without major problems of cash shortages. The positive cash flows show that the company has enough cash for other activities.

Coca-Cola Company has employed over 71,000 people worldwide in over 200 countries. Human resources of the Coca Cola Company are strong.

The company’s intangible resources include the technical resources, reputation, trademarks and goodwill. Coca Cola Company has technical resources such as technical expertise which have helped the company in production of some. The company able to produce numerous flavors in their soft drinks, it shows that the company has greater expertise knowledge. The company is able to gain competitive advantages.

The company has gained a good reputation from 126 years on operation of its business. Along the 126 years of operation, the company is enjoying customer’s loyalty and goodwill. It is the internal advantages for the Coca Cola Company.

Coca-Cola Company enjoys organizational capabilities which that formula of productions of syrups in a manner that is superior to other competitors. The taste of Coca-Cola’s products is distinct from others competitors and it is not disclosed out over the 126 years. From this differences of the formula, and it’s hard to copy by others competitor, the company has gain a competitive advantages.

Coca Cola Company is the world largest beverages company. It consists of 3500 product and available over 200 countries. It shows that the company has a broad and widest distribution network. Coca cola reaches consumers through a wide range of customers, such as vending machine, grocery shops, street vendor, fast food restaurants such as McDonald and many more. This consider as strength for Coca Cola Company as the variety products of the company can be consume by more and more people. At the same time, the profit of the company can also be maintained.

Besides that, the brand name or trademark of the Coca-cola has become the most recognized over the worlds. Over the past 126 years of Coca-Cola Company, they has become a famous company, it brand name has been spread widely to different country.

Coca Cola Company is able to maintain low production cost and quality of the product, by investing into the bottlers of their company. It shows the strength of Coca Cola Company. Coca Cola Company gain competitive advantages on maintain the low production cost and better control on cost as compared to others competitor. Coca Cola Company is able to provide more reasonable prices of their products and widely accepted by lower and middle class of people.

Coca Cola Company is also well diversified in its production line. The company produced many brands of drinks and keep on increasing over the year to give better and more choices for the customers. Coca Cola Company can aims for more consumers and widen their range of target customer and market for Coca Cola Company.

Coca Cola Company has disadvantages of marketing snacks while Pepsi Co, the major rivalry of Coca Cola Company derives 60% of revenue from the snacks division. Products that offering by Coca Cola Company has restricted to beverage. It considers as a weakness of Coca Cola Company, it is because that the company is not able to compete with its competitor in the snack division. The revenue of Coca Cola Company is more derives from the beverage division.

More than that, Sugar and sugar-based drinks of Coca-Cola Company is not good for health and causing obesity. Due to the healthy issues, people will choose for a healthy eating and drinking. Coca Cola Company’s sales on the traditional sugar based drinks are affected when people are more concerning towards the healthy drinks.

Coca Cola Company has facing the rising cost of raw materials. Raw material such as corns, oranges, fuel and electricity has raising some issues for Coca Cola Company. The rising cost of raw material will causing the increasing in the production cost of the company. The prices of the product will be increase to maintain the profitability of Coca Cola Company.

Besides from that, Coca cola Company is also facing an issue of lack of water sources. Coca Cola Company has incurred a cost of using the system to purify the waters. It has increasing the manufacturing cost of the product.

Coca Cola Company has losses a portion of potential revenue. Distribution and bottling of Coca Cola Product is done by the bottling partner of Coca Cola Company. Coca Cola Company is only the minor stakeholders in the bottlers’ company. Coca Cola Company did not gain much revenue from the bottlers.

Others than that, Coca Cola Company are starting with the sugar-based drinks. Due to the healthy problem, Coca Cola Company is facing a problem of consumers push back. Coca Cola Company may loss their customers due to the unhealthy drinks. Moreover, some ingredient that used by Coca Cola Company may affects people’s health and regulation in United Stated may required a warning label for Coca Cola Company’s product.

Coca Cola Company is facing strategic issues on the rising cost of raw material. Strategic Recommendation to Coca Cola Company is the integration Strategy.

Integration Strategy is to seek control activities along the supply chain. Its starting from the raw material production until the purchase of the final products.

Coca Cola Company should go for the Backwards Integration Strategy as they can control over its raw material. Prices of the raw material has causes the cost of production to rise. Backwards Integration Strategy will enable the company to have the power on control its pricing, quality, choice of material and others.

Besides from that, Forward Integration Strategic also should implement by Coca Cola Company. Forward Integration Strategic enables the company to have their own company to working on the value added activities such as bottling and distribution. The company distribution and bottling of the product is done by more than 300 bottlers. However, it has give rise to a strategic issues, as Coca Cola losses a portion of the potential revenue. By Implementing Forward Integration Strategic, Coca Cola Company can have the full revenue and have more control on distribution and bottling activities.

Due to the healthy issues brings by the sugar-based drinks of Coca Cola Company, Coca Cola can go for the diversification strategy. The diversification strategy is concentric diversification strategy. Concentric diversify strategy show that company would want to increase variety product that related to the company’s operation. Coca Cola Company should acquire more and more drinks brands. The Company should try to invest or buy out more well-known healthy drinks brands. Coca- Cola Company should diversify their brands portfolio in others types of beverages to address the healthy issue.

Based on the case studies of Coca-Cola Company, We had analyzed into the external environment of the company by using PESTEL and porter’s five forces. For the internal environment analysis, Value chain analysis and resources based view are used.

As a conclusion, Coca-Cola Company is facing strategic issues. The strategic recommendation for Coca-Cola Company is the Integration and diversification strategy.



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