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Essay / A case study of Coca Cola and operational methods applied by the multinational soft drinks company
Table of contentsIntroductionElements of operational effectiveness with its operational strategyAlignment of tasks with operational strategyFormulation of operational strategy for Coca Cola (priorities competitive)Analysis of competitive production priorities ProcessConclusionIntroductionCoca Cola is a multinational company that manufactures carbonated soft drinks. The company has competitive brands in the global market, which over the years has enabled it to compete effectively. Some of the common soft drinks that the company offers in the market include sprite, Fanta, and Coca (Coca Cola, 2016). The company has also introduced alternative brands in the market, such as mineral water, powerade and minute maid, among others, to target new customers and increase their turnover. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Coca Cola supplies its products to more than 200 countries around the world (Coca Cola, 2016). The company has several missions: to inspire people by creating products that add value and make a difference in customers' lives; and refresh the mind, body and spirit of guests around the world. To accomplish its mission, Coca Cola has set achievable goals. The company inspires people by creating a conducive and friendly environment for its employees. It also helped build mutual loyalty with their business associate, which allowed them to succeed in key areas of their operations. The company has also demonstrated that it is socially responsible by supporting sustainable communities globally. Elements of operational efficiency with its operational strategy Coca Cola has succeeded in its brand development strategy. They have been able to maintain their brand image over the years. By building brand loyalty, the company has been able to attract and retain its customers and, therefore, fight against new competition by creating a barrier that makes it difficult for new competitors to enter the market and compete effectively . In order to remain competitive in the global market, a company must develop long-term strategies (Bhasin, 2016). One of Coca Cola's long-term goals is to conduct its operations differently and differentiate its products from those of its competitors. Coca Cola uses a business intelligence strategy as a business tool that allows it to conduct market research and identify customer needs. in each market segment. The company uses information technology to track the performance of its products in the market as well as to determine the needs of various customers. Business intelligence can be technology or applications that track information about various business operations that can be used by stakeholders to make informed business decisions. Business Intelligence also allows stakeholders to know the company's performance; as a result, they would be able to make strategic decisions. Business intelligence tools inform the company about the daily performance of its products in the market by transmitting information from different geographic locations to the company's headquarters. Coca Cola has been able to maintain unique supply chain management over the years, through which its beverages are supplied to many bottlers across the world. world that has a basisof consumers and control a certain geographical area. Coca Cola has a larger distribution center in North America that serves as a distribution point for other retailers and food service providers. The company also has an effective promotional strategy. Coca Cola uses the shelves of various retail stores to display its products clearly to attract customers. This strategy worked for the company because it allowed it to attract and retain new customers. Align tasks with operational strategy Distribution method is one of the key tasks that can never be aligned with operational strategy. This is simply because the company has a particular distribution method that is procedural. It is impossible to align on operational efficiency simply due to communication challenges and problems that can negatively influence distribution costs and cause serious problems for the company's loyal customers. Some of the weaknesses of this task are the fact that it can ruin the reputation of the company, thereby leading to a drop in the consumption rate. Product pricing is also another task that does not align with operational strategy. Coca Cola usually offers its products on promotion at relatively low prices during different seasons of the year. For example, in Pakistan, there are specific seasons in which Coca Cola offers its products at low prices to target more customers and increase its sales volume (Cooper, 2017). Low prices make customers doubt the quality of the products and hence the sales volume would decrease. Additionally, when prices increase, the company would lose customers who would be forced to purchase other alternative products at lower costs. Finally, brand loyalty is also another task that cannot be aligned with operational efficiency. This is mainly because the company may insist on maintaining the quality of its products, but customers still raise other health concerns regarding the products. As a result, the company's reputation would be damaged and the company would risk losing customers and revenue. Formulate an operational strategy for Coca Cola (competitive priorities) Costs Regarding the cost of products, Coca Cola should offer its products at low prices so that they can benefit from an increase in sales volume. The profit margin might decrease, but the business would eventually attract and retain new customers. Producing more products would allow the company to achieve economies of scale which, in the long run, would allow it to reduce production costs. A low price strategy would influence customers' purchasing behaviors, as they would purchase products not based on quality but on their costs (IFM, 2017). Quality The company must ensure that the quality of its products meets the standards required for human use. The company must comply with the regulatory standards of different jurisdictions. The products must not pose health problems and must be consumable by consumers of different ages and must not be subject to any restrictions. Instructions regarding product ingredients and consumption should be clear to be easily understood by customers. Time The business must undertake its operations in a timely manner. This would ensure that customer needs are met efficiently within a specific time frame. The companies' service delivery should then be faster, which would enable them to improve customer satisfaction. Provide answers..