A Case Study of Coca Cola and The Operational Methods Applied by The Multinational Soft Drinks Company

Introduction

Coca cola is a multinational corporation which manufactures soft drinks which are non- alcoholic. The company has competitive brands in the global market which has enabled them over the years to compete effectively. Some of the common soft drinks that the company supplies in the market include sprite, Fanta and Coke (Coca Cola, 2016). The company has also introduced alternative brands in the market like mineral water, powerade and minute maid among others to target new customers and boost their sales revenue.

Coca Cola supplies their products to over than 200 countries globally (Coca Cola, 2016). The company has several missions which includes inspiring people by creating products that add value and brings difference in the lives of customers; and refreshing the mind-body and the spirit of customers globally. To accomplish their mission, coca cola has established goals which are attainable. The company inspires people by creating a conducive and friendly environment to their employees. It has also built mutual loyalty with their business associate which has enabled them to succeed in key areas of their operations. The company also has demonstrated that they socially responsible by providing support to sustainable communities globally.

Elements of Operational Efficiency With Its Operational Strategy

Coca cola has succeeded in their 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 their customers and as a consequence they have been able to combat new competition by creating a barrier which makes it difficult for new competitors to penetrate the market and compete effectively. In order to stay competitive in global market, a company must come up with long-term strategies (Bhasin, 2016). One of Coca cola long-term objectives is to conduct their operations differently as well as differentiating their products from those of their competitors.

Coca cola employs business intelligence strategy as a business tool which enables them to conduct market research and identify the needs of their customers in every market segment. The company utilizes information technology to keep track of the performance of their products in the market as well as ascertaining various customers’ needs.

Business intelligence can be technologies or applications that keep track of information on various business operations that can be utilized by the stakeholders to make informed business decisions. Business intelligence also enables the stakeholders to ascertain the performance of the company; as a consequence, they would be able to make strategic decisions. Business intelligence tools update the company on daily performances of their products in the market by transmitting information from different geographical locations to company’s headquarters.

Coca cola has been able to maintain unique supply chain management over the years whereby their drinks are supplied to many bottlers around the globe who have consumer base and control over a certain geographical area. Coca cola has a larger distribution hub in North America which acts a distribution point to other retailers and food service suppliers. The company also has effective promotional strategy. Coca cola utilizes shelves in various retail stores to showcase their products in a clear manner in order to attract customers. This strategy has worked for the company as it has enabled them to attract and retain new customers.

Aligning 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 particular distribution method which is procedural. It impossible to be aligned with operations efficiency simply because of communication challenges and issues which may negatively influence the costs of distribution as well as contributing serious problems to the company’s loyal customers. Some of the weaknesses of this task are the fact that it can ruin the company’s reputation thus leading to a decline in consumption rate.

Products pricing is also another task which task which do not align with operation strategy. Coca cola usually offers their products on promotion at relatively low price on different seasons annually. For instance, in Pakistan, there are specific seasons whereby Coca Cola offers their products at low prices to target more customers and boost their sales volume (Cooper, 2017). Low pricing leads customers to doubt the quality of products and as a consequence the sales volume would decline.

Also, when the prices are increased, the company would lose customers who would be compelled to purchase other alternative products at cheaper costs. Finally, brand loyalty is also another task that cannot be aligned with operations efficiency. This is mainly because the company may insist on maintaining the quality of their products but the customers would always raise other health concerns about the products. As a consequence, the reputation of the company would be tainted and the company would risks losing customers and losing revenue.

Formulating Operations Strategy for Coca Cola (Competitive Priorities)

Costs

In respect to products cost, Coca cola should offer their products at low prices so that they can benefit from an increase in sales volume. The profits margin might decline but the company would end up attracting and retaining new customers. Producing more products would give the company economies of scale which in the long run would enable them to reduce the costs of production. Low pricing strategy would influence customers purchasing behaviors as they would buy the products not on the basis of quality but its costs (IFM, 2017).

Quality

The company should ensure that the quality of their products meets the required standards for human use. The company must comply with regulation standards in different jurisdictions. The products should not raise health concerns and must be consumable to consumers of different ages and must not have any restrictions. The instructions about the products ingredients and consumption should be made clear to be easily be understood by customers.

Time

The company should undertake their operations in a timely manner. This would ensure that the customers’ needs are addressed effectively within a specific timeline. Then company service delivery should be faster and this would enable them to improve customer satisfaction. Providing instant responses to customers would enable the company to maintain trust between them and their customers.

Flexibility

The company should be flexible by adjusting quickly to potential future changes. The company should be able to alter their service delivery schedules depending on the needs of their customers (IFM, 2017). They must be able to modify their existing products depending on the market demand. Company flexibility capabilities would enable the company to maintain competitiveness by responding effectively to future potential changes.

Competitive Priorities Analysis of Production Process

Competitive priorities enable a company to gain competitive advantage. Some of the key completive advantages which are gained by the company include differentiation and costs. It is operationalized and aided by flexibility, cost, quality as well as efficiency. The priorities can be employed by the company in setting supply objectives which put strong emphasis on technology use in the production of high quality products and reduction of productions costs. As a result of high demand of company’s products, the company usually tests their new products before releasing it into the market by ensuring that final products meet the consumer requirements (IFM, 2017). The company has capabilities to address long-term changes that may be incorporated in a regular basis.

Some of the advantages of the new enablers are establishment of consumer base which thus enable the company to boost their revenue. Flexibility in operational processes enables the company to adapt to new changes. Furthermore, the ability of the company to introduce new changes would enable them to address the changing needs of their customers thus would be able to compete effectively. Some of the cons of the new enablers is changing market environment which is unpredictable (Bhasin, 2016). The technology world also keeps on changing and the strategies put in place by the company may not work in the near future. Finally, new enablers may lead to an increase in supply of products thus potential losses.

Conclusion

In conclusion, Coca cola is a global supplier of non-alcoholic drinks which has enabled them to compete and survive in global market over the years (Bhasin, 2016). The company focus on manufacturing quality products has enabled them to build competitive brands that stand out in global market. The company should invest on technology use to enable them analyze market dynamics which would enable the company to ascertain future changes. Identifying future changes would enable Coca cola to easily adjust and adapt to future market environment.