Coca Cola Company Operations And Strategies Business Essay Example

loyalty.

One specific issue mentioned in the text is the ban imposed by the Indian parliament on selling Coke in its cafeteria due to high concentrations of pesticides and insecticides found in tests. Another problem highlighted is the excessive usage of water from shared groundwater sources, which has resulted in pollution of scarce water resources.

Furthermore, the text emphasizes Coca Cola's mission statement, which aims to maximize stockholder value over time through comprehensive business strategies that create value for consumers, bottlers, and communities. The company also places a strong emphasis on sustainable growth and creating an inspiring work environment. They believe in having a diverse workforce to attract talented employees from different backgrounds.According to a strategy case study on Coca Cola's website (www.thecoca-colacompany.com), the company has a portfolio of beverage brands that cater to people's desires and needs. They also focus on building partnerships and fostering loyalty. In 2009, Coca Cola established a mission and vision that highlight their commitment to being a responsible global citizen and making a positive impact on the planet. One of their strategies for achieving this is through brand development. Brands are seen as indicators of quality by customers, helping them easily choose the same product again (P. Kotler and K.L. Keller, 2009). Coca Cola has successfully implemented a Brand Development Scheme to establish and maintain a strong brand image, which is crucial for creating brand loyalty, generating consistent demand, and deterring potential competitors. To enhance their brand further, Coca Cola constantly undertakes initiatives such as testing different brand attributes with thousands of customers each month. An example of this is the introduction of Coca Cola Zero, which was promoted differently from

their traditional ads. Currently, the company offers three types of drinks: Coca Cola Classic, Diet Coke, and Coca Cola Zero. Experts suggest that while the original tagline "The Real Thing" accurately represented Coca Cola in the past, it has become diluted with the introduction of different Coke variants.The dilution of Coca Cola has resulted in a loss of its original essence, which can cause confusion among consumers amidst new non-alcoholic drink companies. To avoid this confusion and successfully retain consumers against these competitors, Coca Cola should design strategic trade name building plans (development scheme of Coca Cola, finance.mapsofworld.com). In order to gain a better understanding of consumer preferences and behavior, Coca Cola plans to utilize Information Technology (IT). An article titled "Coke's RFID-Based Dispensers Redefine Business Intelligence" from Information Week mentions that Coke intends to implement Freestyle drink dispensers nationwide. These dispensers not only provide customers with extensive choices but also incorporate advanced technology. Business intelligence (BI), as defined by Rainer and Turban (2009), refers to applications and technologies used for analyzing large amounts of data and providing access to them, enabling users to make smarter business decisions. Freestyle will serve as Coca Cola's primary tool for BI by sending massive consumption data back to their headquarters in Atlanta. The dispensers collect data on customer consumption and transmit it through Verizon's wireless network to Coke's SAP data warehouse system in Atlanta. This unique BI-enabled dispenser allows Coca Cola to identify new trends and receive feedback on product viability, giving them a competitive advantage.Storing IT details would enhance Coca Cola's formula expression and pricing strategy. They adjust product prices based on the season, primarily decreasing them

during winter for favored bottles or 1 liter glass bottles. To promote their products, they purchase shelves in large departmental stores and showcase them attractively.

SWOT Analysis

Strengths:
1. Brand equity
2. [Other strengths]

Coca Cola has a strong product distribution and global network, solid financial performance, and recognition as one of the most recognized brands worldwide. However, weaknesses include their credit rating and customer concentration, especially with Wal-Mart representing over 10% of their US business. Additionally, Coca Cola is not the top player in India and Pakistan.

There are opportunities for potential growth in demand and expansion into all segments due to globalization being a driving force for the bottled water industry, health drinks, fruit juice companies like Pepsi, as well as negative image perception in certain regions.

Customer demand is the primary driver for Coca Cola's success. Innovation is crucial in today's market to survive and thrive. Recognizing this need, Coca Cola shifted from relying on one core product to becoming a comprehensive beverage company after experiencing a decline in growth in the late 90s.They now offer around 400 different products and continue to dominate the beverage industry.Coca-Cola, a global company, embraces the trend of expanding its operations worldwide in response to globalization. Technology plays a crucial role in helping businesses tap into the vast revenue opportunities presented by participating in the global market. Currently, Coca-Cola operates in 200 countries globally but faces challenges such as concerns over high levels of sugar and caffeine in their Coca-Cola Classic product. The increasing health-consciousness of the world could potentially reduce demand for their products. Moreover, a significant portion of Coca-Cola's sales come from schools, pressuring the company to provide healthier

alternatives if they want to continue selling in educational institutions. Another issue is the ban on selling Coca-Cola products in the Indian parliament cafeteria due to high concentrations of pesticides and insecticides found through tests conducted by the Indian government. Substances like lindane, DDT, Malathion, and chlorpyrifos were detected during these tests, making Cola unsuitable for consumption with some samples even exceeding toxin levels permitted under European Union standards by over 30 times. Conversely, trials on samples from the United States deemed these beverages safe.Coca Cola, like many other companies, has experienced the consequences of water scarcity caused by the global water shortage crisis. The excessive extraction of groundwater by Coca Cola's bottling operations is the primary reason for this issue, which has also led to pollution of the remaining scarce water due to the company's activities. As a result, several Indian citizens have protested against Coca Cola. Despite its reliable performance and consumer trust, it is crucial for Coca Cola to strive for greater success in order to maintain its position in the beverage industry and continue growing. This can be achieved by increasing shareholder wealth through higher sales and reducing costs to generate higher profits. Based on my analysis, I recommend that Coca Cola adapt gradually in today's rapidly changing world as innovation provides a significant advantage over competitors. Therefore, The Coca Cola Company is introducing an eagerly anticipated new product. To retain brand loyalty and establish a strong market position, Coca Cola must consistently enhance its brand image and differentiate itself from rivals.The use of depleted water resources is a factor that hampers the popularity of the company in India. This not

only affects its brand perception but also causes difficulties for local residents. In order to establish a strong presence in India, it is crucial for the company to meet specific requirements. This includes conducting environmental due diligence and impact assessments before starting projects, performing land water and environmental studies for site selection, and maintaining a cohesive and harmonious workforce. These actions bring significant benefits to the company by ensuring alignment, achieving shared objectives, and consistently setting new goals.