In a competitive business environment, there are various strategies that most companies put on board on order to make sure they gain a competitive advantage over others. These policies transcend for the production strategies, selling strategies marketing strategies among others. The context for which each company employs these strategies is dependent upon the business environment and industry for which every business relates. Various companies have applied different production strategies with keen attention to the notion of the instinctive dynamisms in the market. The sole responsibility of any firm now is to give its best in terms of positioning its products, producing quality products and also making sure that the price of these goods is well accentuated. With this, I mean that the customers for the product are deemed to get the value for their money. Before any investor put his or her money into any company, there is need to scrutinize the company with keen concern on the profitability and the positioning of the same in the current market industry. Retail industry is brought on board to act as an intermediary between the wholesalers and the consumers before one erects any retail shop, it is important to analyze the retail business and how profitable it would be in the long end.
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Coca-Cola Company is on the leading beverage businesses that have been existence since time immemorial. The company is known for its variety of brands across the world. Some of its brand of products the company is well known for is the Coca-Cola, Sprite, Fanta, stoney and krest. The company’s primary headquarters is in Atlanta Georgia. The company is a publicly traded company with many branches across the world. The single most effective strategy that the firm has embarked on this year is the profound marketing strategy. As at now the company revenue by the year 2015 stands at $ 44.3 Billion with an operating income of about $8 7 billion. The company has also enjoyed a high level of net income of $ 7.3 billion for the last year 2015. The main reason for this high level of profits is because of the strong brand that the company has employed over the years on its products addition the company has been strategically placed in the beverage industry where it caters for all the family member drinks. In this prospect, the company is keen to inculcate the notion of making sure that at any point, their brand is known for anyone in each country globally. On the account of the net worth of the company, it is a fact that the corporation has the net assets of $ 90.03 billion with a total equity of $ 25.554 billion. Currently, the company has 129,200 employees and also has lots of subsidiaries which are deemed to be quite successful in various continents across the globe. This paper looks into different aspects of the company with keen concern on the positioning of the business in the industry with which the company is. In this prospect, we would take a look at the company’s internal and the external environment with keen attention on how the company has fared on in the recent past. The various level of competition that the corporation has undergone is also of high-level importance. We would also look into the different means and ways in which the company has decided to give react to the challenging situations that it has faced recently. Additionally, we would carry out a SWOT analysis on the business and look at the position of the company in the production arena. The perception of the company buyers will also be put into context while giving much consideration to how their knowledge has affected the product sales of this company. We would also look at the competitive stance of the company and give an incisive recommendation on the same with respect the other industry players. As its stands, it is also imperative to dig into the target market and see how the company has engaged this market into the art of buying their goods. Lastly, we would give an automatic analysis on the various tenets of the location of the company and check on how their location has contributed to the sales of the company and hence the revenue got from the sales.
The primary mission of the firm is to refresh the world, to inspire the various special moments of happiness and optimism among the different individuals across the globe. Additionally, the company is deemed to create a substantial value and make a profound difference.
A closer look at the mission statement, the statement is centered on the making the life of the final consumer even better. This move only means that the company has adopted the production policies with keen concern on the various preferential tastes and needs of the customer. That is why it has numerous brands that it has used to get onto every segment of the target populace and hence capture that very essence for which their sales is deemed to be high. Additionally, the company tries to lean on the social aspect of the human being since it man is a social being and would want to associate with others. The various joints which man rests are where the company has created as its pint of sale. This notion is because the company knows that their brand is for refreshment and social fulfillment.
Currently, the company is deemed to be the number one brand in the sale of beverage across the world. This notion alone has given the company a very competitive advantage over the other companies like Pepsi. The main reason as to why this company is seen to be the number one brand is because the company has a well stratified and active approach of advertising its product in every. As at, the billboards and the various media such the televisions and the radios are advertising this product at a high note. Additionally, the company has extensively used the internet platform to engage the different customers and the huge clientele base that it has across the globe. With this in mind, the company also has well-connected distribution centers that it has employed which are deemed to ensure that they in touch with each and every customer. The brand is well known because the sodas for this company are easily accessible by anyone. The reason for easy accessibility is due to a high distribution network that cuts across continents and also across the countries. Another profound strength that the company has is the team of committed employees who would stand at nothing but meet the set targets. The objectives of a bottle per year, per month broken down into per week and daily need to be adequately met. Furthermore, the company, management has endured giving much attention to the proper compensation and remuneration plan for its employees. In this prospect, the very vital needs and wants of the employees are deemed to be fulfilled in the most appropriate manner. for this notion to occur the company has decided to have a slice diagonal kind of management system which would help to have a collective way of decision making where every individual is deemed to contribute to the decision-making at every point in time for the company. The collective decision making has also been the real strength for which the company has thrived in production for all these years.
Currently, the company has embarked on the production orientation philosophy. Here the company is not much concern about the feel of the customer more rather they have the certainty that what they produce will be consumed by the high number of the consumer that they have. They have not inculcated that fact that most of the competitors like Pepsi are coming up strongly in the differentiation of products by looking t the various tastes and preferences of the customers. I this realm, the company am deemed to lose some of its clientele base to its competitors. The notion I strengthened by the fact that as the technological advancements take way, there is a need to give much attention to the changes that come with technology and embrace them if you want to remain relevant to the market industry. Another very salient weakness that the company has is the notion of outsourcing some of its essential production techniques. In this prospect, the company is deemed to be very vulnerable to the leak of information about their uniqueness in production that will make them have a high stance of malfunction and less competitiveness in the manufacture of various products. Even though the step for subcontracting the different areas of production is natural, it is important to note that if there are some disagreements between the company as and the subcontractor then the company operation is deemed to be curtailed. To this end, the company should ensure that it gives much priority to the notion of having its technicians handling the whole production process without engaging the various subcontractors in the scene.
Coca-Cola Company currently has a big brand out there that helps it to sail through the different global markets. At the same time, the company has a good reputation of making sure that the shareholder’s wealth is in the safe hands and continues to multiply. In the advent, the company has the significant opportunity to expand its operation in the various international markets that it has not ventured. This move comes as an in gesture to the fact that the company currently enjoys the goodwill and the large capital base that it can use to expand its operations in various countries across the globe. Another noble of opportunity that comes with the company’s large capital base is the need to diversify its production to various fields of operation. For example, I believe that if the company indulges into the mass production of say milk and its production with its resources, it will be immensely received by the very consumers that have the company as the best producer of the best beverage. The sole responsibility of the company now is to make sure that it takes advantage for its immense net worth and get the highest level of income for when it is at its maturity stage of product life cycle. Another area of opportunity for this company is to hire the best professionals across the globe that have the right attitude and the best skills to drive the business in meeting its desired objectives since the company has the machinery to employ and maintain these highly qualified professionals of a lifetime.
One most vital threat that the company has is the legal restrictions that the company face in various countries that the firm has embarked to invest. The company’s primary aim is to maximize the wealth of the shareholders. The rules and regulations of different countries which the company invests in make it tough to obtain this goal. These laws transcend from the notion of high taxation levies on the foreign businesses to the bringing up of the various restriction on the labor law such as restriction on the minimum wage. In the event that the countries like South Africa Institute high level of the minimum wage on the employees working for the company, the most practical thing that would happen is the reduction in the net income for the enterprise. And this has the transcending effect of posing a threat of exit of the shareholders who will now view their investments as not productive in the firm. Additionally, the working environment for which the various countries have put in place acts as a real there to the productivity of the company as well as the reputation of the same. Each country which Coca-Cola Company has opened its branch has their way of ensuring that the working conditions of the employees are well taken care of. In this line of thought, it is imperative to note with concern that these countries may outlay considerations which are quite exaggerated in this stance which in the long end will bring on board the advent of high-cost implication on the company. The transcending effect of this move is that the firm is deemed to use a lot of resources than expected and hence creating a high level of expenses that contracts the profits of the company. The last threat for the company is global economic dynamisms that the company has to face. As it stands now, the company is a global and hence faces the inherent risks of the fluctuations of exchange rates in world terms. The general prices of goods and services changes make the costs of raw materials which the company makes quite difficult to predict the profitability of the enterprise, and this has been a significant threat for the business as a whole.
The company currently faces various challenges that are political in nature. This notion entails the inception various rules and regulations that restrict the company from producing certain beverages. For example, in some countries, the production of certain product brands are prohibited since they are alcoholic in nature and should be generated by alcohol companies alone. In this prospect, the company has been on the trail of reducing its production levels concerning such measures. Additionally, there are countries which are war zones, and hence the company misses the opportunity to invest in such areas. These countries include most of the middles east countries such as Iraq, Iran, and Armenia among others. The current context of war impedes the flow of goods and services from one zone to the other. The company sees this notion as a high risk factor that would not only reduce the chances of the company getting into massive losses but also taint the formidable reputation of the company which it has tried to build for over the years. Furthermore, the company has managed to envisage that the only way out of reducing the political interference with its business is to engage the local businesses into its mainstream so that they can act as a cushion if the government instills destructive laws by lobbying on behalf of the company.
As mentioned earlier said the company has been faced with the various international trade risks that face at each point in time. One of them is the exchange rate risks. This risk happens when the company either imports or exports some of its products overseas. The fluctuations in the exchanges and the upheavals in the economy arena make the total trade quite risky. Additionally, the company is faced with changes in the demand for its goods in each country. As we all know, the beverage industry is disturbed by the notion weather. At the times when the weather is hot, most people consume the soda and the soft drinks to quench their thirst. If the weather becomes cold, the demand for these products becomes quite small. This notion is because the consumer cannot take them anymore for they are cold as well. The reduction in the demand always makes the very existence of high operation costs relative to the revenue that comes in. The transcending effect is that the company might run at a loss which is very detrimental to the enterprise policy and its mission as well.
In this arena, the firm has been spotted to be depicting a high sense of moral decadence in the teenagers using its advertisements that it has posted on the worldwide web. In one set of the community, this form of advertisement has been seen a normal one while in other countries it is considered to be quite abusive and should not be aired in the local televisions. This notion is a source of criticism that the company has been faced with in the recent past. To this effect, the company has faced a threat that has tainted its names in some of the countries, and this has made its current advert to be banned in some countries. The tainting of the names sets back the reputation of the company which could affect its shares in the stock market if this information gets into the ears of the shareholders who are the sole investors in this company. On the ground of the social empowerments, the company has tried on many occasions to sponsor various activities in different countries as required by the society around. This has been quite successful over the years. It has been reported however that the cost of sponsoring such events has a severe negative impact on the profitability of the company. With this in mind, the company has tried to minimize its participation in such events as they are deemed to reduce the net income for the enterprise. Coca-Cola recently employed professional experts who were charged with the sole mandate of making sure that the company up with a cost reduction strategy that would be deemed to give the company the best way to deal with the rising costs of societal sponsorships. The team has soon devised a natural way in which both the company and the society as whole would benefit.
In the technical arena, the company has strived to keep up with the dynamics of technological advancement. One area that the firm has utilized is the inception of the internet marketing. The company has virtually used all platforms of the web to advertise and create profound awareness to its customers. The company is keen to notice the paradigm shift from the standard conventional communication to the technology based communication. In the current context of communication, most people use the face book, twitter and email platform to convey messages to others. In so doing they tend to give much attention to what is happening in the media and this forms a pool of customer’s foe Coca-Cola Company. A critical survey shows that every Google site that one enters; there must be an advert for Coca-Cola products and brand. This notion connotes that the company is very keen on the various technological advancements and how they affect the current business cycle
The company has been faced with various legal suits, for example, the suit against the advertisement which was morally unacceptable to the humanity; the company has since suffered a loss in the court case where it produced its products without caring for its environment or the employees that are working in the company. As it stands now the company has lost billions of dollars in law suits for which have reduced the various profitability of the company as well. Additionally, the various governments have their own court system which at times might impact negatively on the operations of the company. It is now the sole responsibility of the company to adhere to the strict rules and regulations of the company.
On the account of internal environment we have the suppliers, the employees, the customers, and the shareholders
Currently the company has numerous suppliers who have a good relationship with the firm. From the analysis of the financial statement of the company, it came out clearly that the credit payment period for the company is approximately 38 day which roughly 2 months. The industry average for the debt payment period is around 3 months which 90 days. At this point we see that the supplier’s relationship with the company is a cordial one and this good competitive advantage for the company.
The consumers perceive the company brand the best brand in terms of the beverage industry. The main reason for this notion is because the company has built a good reputation with its customer for many years and this has helped the consumers to have a high sense of reliance on the products that Coca-Cola is bringing on board. On the account of pricing of the product, the customer from their perspective feels that they are getting the value for their money, and this has improved its sales among the various consumers across the world.
The company has employed one of the most successful remuneration plans for its employees. The compensation plan has both the core and the overtime pack on it. Additionally, the company has ensured that the pension scheme for its employees is up and running. It has taken quite a long time since the employees had a strike. The company has also liaised with the various labor unions laws and trade restrictions, and this has enabled them to have a peaceful coexistence with the employees. These reasons are the fundamental basis for which the employee turnover is quite low in Coca-Cola Company
The investors of this company have been well contained by the very profound dividend policy which helps their wealth in terms of their shares to growth abundantly. Additionally, the company can inculcate the shareholders in the decision making of the enterprise, and this helps them to feel responsible for every action taken by the management over their wealth. On the grounds of shares, the company’s stocks keep on growing, and this makes the company quite high in terms of the financial base.
The main competitor of this endeavor is Pepsi Beverage Company, which also deals in the same product; the net worth of this company is slightly lower than that of Coca-Cola Company. The main competitive advantage that the company has is the well stratifies channels of distribution of various products to the final consumes. The retails put in different strategic locations which are near the major cities and town where the demand is deemed to be quite high. The company is not engaged in the price wars with any business more rather it has given much weight to the notion of convenience to the finale consumer where it has availed the products at the doorstep of the customer through the well-distributed consumer retails shops across the world.
The primary target market for this company is the whole family who wants to quench their thirst and enjoy having fun with their friend while having some refreshments. In this respect, it is very critical to connote the fact the company has decided to target the households for a whole family treat. To diversify its production, the company has decided to produce the various brands that range from the diet coke for those with diabetes, the usual sprite for the basketball players, the Fanta Orange for the children among others. With this kind of diversification, the company has a broad range of target market for its products that rounds it up for the household as a whole.
The company has decided to put the primary distribution centers in the major cities and town across the world which is deemed to help it get the best number for demand for its variety of its products. Additionally, the company has embarked on the mission of making sure that the retail distribution channels are at every rural area since it recognizes the fact that the kind of product they are selling is convenience consumer offering type. So it has to get the satisfaction of the customer if the company needs a higher yield of its products.
The main promotional activities that are best for this company is the billboard that would help consumer notice the locations of each retails shops. Additionally, the company is deemed expand its clientele base with the high level of customer service and commitment delivering high-quality products that would help the build its reputation even more. Additionally, the company is deemed to retails the products that already have a stratified brand that would help it sail through regarding sales.
In summary, the company analyzed here is a formidable stance of making sure that it gets the best out of the market. With the high capital base in place and the strong sense of commitment to employees, the company is deemed to sell the best in the market. The quality of the product for this endeavor is guaranteed since the enterprise gets the result of a reputable brand. The reliance of this company to get the best revenue is deemed to be a su