Business Strategy Essay – The global presence of a business organization is essential for growth and development. Companies operating in multiple geographies provide a high-quality market platform and customer base. The international community needs a system that enhances internal stability and external competitiveness. The level of capital invested in the business is insufficient to ensure business continuity; therefore, the Organization needs a robust planning and management system. Through different methods of expansion and internationalization, companies have the opportunity to achieve higher profits and increase market coverage (Rotha’rmel, 2017). It is important to note that usage will positively impact the business or have an impact on systems and structures. Therefore, understanding organizational performance and the processes used to control company performance is important for critical advice and business optimization (Rotha’rmel, 2017). This article examines The Coca-Cola Company’s global corporate strategy with the aim of identifying strategic fit and where it falls short.
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Business Strategy Essay
The Coca-Cola Company was founded in Atlanta in 1886 as a soft drink company. The business concept is the brainchild of John Pemberton and Frank Robinson. The organization improves the original quality and expands the market with the aim of building a competitive firm (Hartogh, 2004). The company is able to generate more than 1.9 billion servings of different brands every day from a small number of daily sales (Coca-Cola, 2015). The move to bottled brands is an important change for growth and development. The introduction of different structures and policies related to production and ownership sharing creates new business challenges. New management measures are required to increase revenue and reduce operating costs. Companies launch standard bottle packaging, promotions and promotional coupons, and other media announcements to increase market share. By 2009, the open joy campaign led to a significant increase in sales and international reach (Coca-Cola, 2017; Coca-Cola, 2015). The company currently operates in major markets around the world and is the number one beverage manufacturer in the world. Although firms are characterized by competitive market dominance over competitors, it is necessary to understand firm planning and firm performance in order to increase its influence in the world (Hartogh, 2004).
Business Strategy Essay Sample
The first method of international presence is to focus on supplying beverages and soft drinks to consumers. The organization focuses on product development and customer acquisition. In the 20th century, management created emotional relationships between consumers and brands to improve market preferences (Coca-Cola, 2017). The purpose of this move is to ensure that the product is known to customers in the niche segment. By 1988, the Coca-Cola brand had become the most recognizable trademark in the world. Such success strengthens the company’s position in a highly competitive market. The growth rate increases gradually as companies set up more multinational corporations. The introduction of brands according to market needs became a new trend in the late 1990s, with a special emphasis on health issues (Coca-Cola, 2017). Although the company’s sales have grown, it still needs a newer, modern approach to market changes and demands. In late 2000, the organization laid out five major steps that would enable the company to achieve the goals it had set. The five actions are based on a learning process related to past international presence and market stabilization and growth processes.
The Coca-Cola Company is currently focused on driving revenue and profit growth. The management focuses on more than 200 countries where the organization is working to improve market share control. Companies have implemented segmented investment strategies according to different types of market and economic changes (Coca-Cola, 2017). Therefore, adjusting investment goals to suit the segmented market structure and brand positioning can help companies balance resources and goals. This approach allows companies to focus on making products more affordable, increasing sales and more competitive. Since the operating market is divided into two categories, the company regards the balance between price and volume as a market strategy for economic development and price mix in the high-end market (Coca-Cola, 2017). On the other hand, the company is investing in the brand and the business. As a result, companies have increased investments in marketing, brand management, manufacturing processes, and beverage portfolio performance. Using global campaigns designed to support all brands dictates a global approach to supporting brands. A strong promotional strategy includes the 2016 Taste the Feeling program for the Coke Zero, Coca-Cola Life and Diet Coke brands (Coca-Cola, 2017).
In addition, the company has been very active in the organization’s focus on upgrading work levels and market-based approaches to improve the company’s ability to respond to financial changes. Therefore, management is currently working on controlling costs and balancing production and market demand. The decision to reduce non-media promotion and monetize media advertising was driven by the need to increase output per use (Coca-Cola, 2017; Yuvaraju, Subramanyam, & Rao, 2014). Additionally, growing customer demands and expectations, along with increasing competition in the workforce industry, has created a culture where efficiency, timeliness, and levels of employee empowerment determine the level of organizational success. The Coca-Cola Company is currently shifting its strategy to a simpler structure (Coca-Cola, 2017). Restructuring management and production processes are some of the commitments pursued by companies. Still, the organization is working class. The main focus of the company has been the production of soft drinks and the company has incorporated elements of diversification into brand management (Webb, 2006). With more than 500 alternatives, the organization is seeking to maintain and increase its market share by integrating ongoing changes and consumer demand (Coca-Cola, 2017).
The Coca-Cola Company has multiple products in the market that can be traced back to mergers and acquisitions made by management as a means of growth and competition. The company has improved customer satisfaction based on the many brands the organization is currently focusing on. The shift in the market towards healthy alternatives has created new competition, which creates a need to diversify the market and increase revenue. As a result, the company has implemented several measures to maintain its success (Rossolillo, 2016; MarketLine, 2016). One of the methods used in organizations is consolidation, where an organization merges its business with another company under a joint venture agreement. The company bought businesses and took control of their operations. The Coca-Cola Company, on the other hand, acquires shares in other businesses. For example, The Coca-Cola Company owns over 16% of Monster Beverages, acquired FUZE Beverages in 2007, Vitamin Water in 2007, assembled bottlers in more than 19 states, and acquired the Minute Maid brand, among others (MarketLine, 2016 ). It is important to consider the successes and lessons learned from the methods used to improve business performance against company goals.
Essay Example On Strategic Management And Rational Planning Model
One of the group’s most significant mergers was the new merger of Coca-Cola Enterprises and its Portuguese, Spanish and German units, which had been operating as separate entities. The company has learned from past acquisitions and is now associated with multidimensional experiences (Rossolillo, 2016). With a mega merger, the company hopes to capture top revenues and thus a unique market position. The campaign was aimed at dominating the Western European market, characterized by high sales. In 2015, the three companies grew sales estimated at more than $12 billion, with profits of more than $700 million and customers of more than 300 million (Rossolillo, 2016). The shift to leaner management has allowed the company to retain its leadership team and operating structure. The opportunity to increase profits through mergers is a measure that promises to increase shareholder wealth through an effective cost-benefit balance. An analysis of the suitability for consolidation shows that this step reduces operating costs by 3% on all sales, while increasing profits by 50% (Rossolillo, 2016). Thus, a critical analysis of the merger’s success allows shareholders to consider the benefits associated with the relocation.
Coca-Cola has always seen external growth as the best way to expand, based on the gains the company has made through mergers and acquisitions. Internal differentiation in production and product development has proven insufficient to meet an organization’s operational expectations and competitive aspirations (MarketLine, 2016). However, through mergers and acquisitions, the company was able to control hundreds of client brands