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RESEARCH ON COCA-COLA COMPANY

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Introduction

Multinational enterprises do operate internationally or regionally, publicly known companies like

The Coca-Cola Company do business in many countries in the world. The success of the company is

observed with its way of operation and the number of employment provided to the people around the

world. My research focuses on the internal and external environment of the company, the analysis used by

the enterprise to operate its business and more so, the management of the company. Every business has a

mission that guides the enterprise to provide effective services.

Background of Coca-Cola Company

The purpose of every business is to make returns, international companies like Coca-Cola operate

on a strategy of profit maximization. Coca-Cola enterprise is situated in the United States of America and

mainly majors in the nonalcoholic beverages concentrate and syrup. The daily business that the enterprise

engage in, is the manufacture of Coca-Cola produce. I have chosen to research on Coca-Cola enterprise

because of its commonly known for its reputation ineffectiveness in doing business. According to Paul

Austin, the company is one of the best success business we have in the world today. The company has

won Nobel prize which is a historic thing to be acknowledged and respected. The business focus is not

only on making profits but also on the welfare of people, one of its mission is to support the prevention of

the spread of HIV virus from mother to child.

Coca-Cola company has proven over and over again that it is the best operating company through

the ratings in the stock exchange market. The company once again navigated through the hard-

environmental harshness which is full of competitors by delivering earnings and a revenue number that

did beat the Wall street anticipation. This year Coca-Cola provided its report which had adjusted earnings

per share of 39 cents on revenue of 7.51 dollars. This was a high margin compared to other competitors.

According to James Quincey, Coca-Cola this year will be a successful business venture because the

company is trying to eliminate the 800 million dollars in cost, the CEO is encouraged with the way the

company is heading so far, it’s momentum and vision rhyme in everything the handle (Wirtz,2016).

45.21 is the price in the stock exchange market in US dollars, which has a daily change of 0.43(0.97).

The international Market operates with stiff competition from different companies with the same

goal. Coca-Cola has advantageously placed itself in the world’s soft drink market. The business does

operate in 200 countries comfortably because they are challenged with a clear choice of standardizing

their product offerings globally which is accompanied by the reaping potential benefits of economies of

scale. Coca-Cola has received a substantial growth for more years since its birth in1886, the founder of

the company Dr John Pemberton who was a pharmacist from Atlanta, had a vision and Goals for the

companies’ future. The Mission and the vision of the company are what any other competitive enterprise

practice to provide the best services. The main aim of Coca-Cola industry is to maximize profit as they

maintain a long-term sustainable growth within the beverage industry. The companies mission and vision

are summarized into three option and that is to refresh the world, to inspire the moments of people around

the world through moments of optimism and happiness and lastly the to create value and make a

difference in the place that we live in, this is observed through employment and other help is given to the

society.

The external environment of the company consists of the macro and microenvironment. The

macro environment of Coca-Cola company are the factors that are uncontrollable by the business. This

factor does influence the decision making of the company and more so it’s performance and strategy.

Although the enterprise is well managed and it is the leading enterprise in the beverage industry, it still

sustains its competitive advantage. The external factors are the main reason why the companies perform

best to outshine other companies. Macro factors such as technology, political, economic and competition

of other related enterprises like Pepsi enterprise.

The political factors strongly affect the marketing strategy of a company. This factor is based on

the pressure groups, the agencies who work with the government and more so the rules and policies

required to be followed in order to run a successful business following the trade traffic and the fiscal

policies which utmost can affect the economy of a country and in turn the procedure of business. Coca-

Cola is a non-alcoholic beverage company it will be categorized under the food and Drug Administration.

The business has to ensure they meet the required standard of FDA guidelines in order to be approved to

function to the public. The guidelines and regulation of revenue, export, import and political problems

are the main reason why a company can be denied access to operating internationally if faced with a

political crisis.

The increase in the level of purchasing demand depends happening the increase in the growth in

the growth of the economy. Coca-Cola is identified as having the best marketing strategy as it enters a

new market and manages to market its product effectively across the world. The coca cola company

operates in more than 100 countries and with this tool of effective marketing the business works in 63

different type of currency. Therefore, with the fluctuation of the exchange rate and currency rate the

business export of products is affected globally. The company can either get a loss or a profit because of

the economic effect globally. More so, the Interest rate is a tool affecting the Coca-Cola company on

borrowed money. The company does manage the fluctuations in the rate through the use of a derivative

instrument. The employees do get a high salary in the countries where there is a high rate of inflation so

that they can cope with the situation. The Coca-Cola product cost also increases which cannot be imposed

on products’ price because of the market risk and competition (Rugman, A. 2017).

Competitive Advantage

Competition from other well-established companies in the market creates more strategies to be

used to provide effective services in order to increase its demand in the market. Other companies like

Pepsi provides a great challenge to Coca-Cola though the company has proved time again to have a

competitive advantage over other companies. A competitive advantage is attained when the current

strategy cannot be implemented by any competitive company. The ability of Coca-Cola company to

continue developing and re-inventing products proves they are in the market to stay. With the world, most

comprehensive distribution system over 200 markets with over 400 brands worldwide proves that Coca-

Cola I so competitive to other enterprises because Coca-Cola reaches its market in places where other

businesses would never consider to delivering their products.

A graph that shows the position of the two competitive brands in the market.

Outer-Organizational of Coca-Cola

A corporate strategy is a path that an association follows in the changing business environment

over the aim of competing well in the market and meeting the stakeholders’ expectation. The business

must have a long-term nature with a direction towards the goals that the organization have yet to be

achieved after a certain period of time. These strategies do affect the whole organization both positively

and negatively depending on the strategy implemented. A corporate-level strategy is simply concerned

about the business to engage in competition with. The corporate strategy needs careful analysis in order to

successfully compete with other business. The decisions made are complex because they need time

because of the market demands. The effective provision and use of the scarce resources in the market

should be beneficial to the whole company. There are three types of strategies used by corporate

companies which include the growth strategy, diversification strategy and stability strategy. The Growth

strategy is implemented with an aim to achieve the key metrics such as sales and revenue. According to

Richard Rummelt, companies only think of diversification implementation when they have realized

progress has gotten to its peak and therefore, no chance for further growth. Diversification is a useful

strategy used by companies in the management position as the firm tries to secure strategic fit in a new

business where attempts to secure a strategic fit in the new industry. Stability strategy is mostly utilized

only in an environment with predictability.

Effective Strategy of The Company

Wheelen et al. (2017)

1. Researchers did not find the literature

that did influence part of the

organization and its external

environment. According to Wheelen et

al. suggested that a change in the

external factors do impact a change in

the organization and its likelihood. It’s

an area that needs the more time and

further investigation by researchers in

Dessler (2016)

1. According to Dessler factors that

impact greater change in a business

are the external factors. More

concentration should be focused on

factors such as technology, security,

economic growth and more so

competition with other companies.

These factors need more analysis and

concentration in order to have a

successful business in the market.

According to Wheelen et al. (2017) and Dessler (2015), it shows Coca-Cola company is ready to

achieve its goal through the strategies they have. The company is focused to drive revenue and more so

profit maximization. The company is effective in every step they make, through branding, and improving

market globally. Coca-Cola enterprise did simplify the business through identifying the areas they could

be faster, smarter and more efficient (Trigeorgis, L. 2017).

Corporate-Level Strategies

order to have an effective an effective

literature analysis.

2. behavior controls the management and

the operation of a company.

According to Wheelen et al. (2017),

behavior control does encourage good

performance that will enable a

business to provide better services and

reach its goal.

3. relationship between the buyer and

supplier should be of importance to

the company, According to Wheelen

et al. describes ways through which a

government can influence the supply

chain of business, more so restrictions

by the government on exports and

imports of certain products to other

countries.

2. organization needs to be prepared to

meet its goals. The business needs a

good gesture to the consumer, this

behavior will attract a good mindset

about the business. The effectiveness

of good behavior to the public it does

attract more sells and this allows profit

maximization of a company.

3. According to Dessler companies

should follow the required trade

restrictions from the government. This

because the goal of a business may be

shuttered down from ever happening

when a company does not go by the

regulations provided by the

government.

According to Porter ad, Ansoff’s Matrix Coca-Cola company has this strategy in place such as

effective cost management, the company is focused on providing better products on time. The company

does risk in engaging in business in more countries despite the risk involved in the business. Product

development requires advertising through the media to reach out to the audience on the updates about the

growth of the company (Smith, 2016). Through adverts the companies are attracts more investors and

consumers which leads to success of the business.

Conclusion

Porter (1980)

1. According to Porter, this generic

strategy is referred to as the Cost

leadership, focus and

Differentiation. The Cost

leadership deals with leaders in

terms of cost. The Different

strategy does involve the creation

of products and services. Lastly,

The Focus involves at a precise

niche market through the

considerate of the dynamic of that

market and the exclusive wants of

customers.

Ansoff’s Matrix

2. According Ansoff Matrix in an article titled

“Strategies for Diversification.” It has

provided marketers and business leaders a

simple way to engage in risk of development.

The strategies presented by Matrix include

Market development, Diversification, Market

penetration and the product development

We love a company because of the product and services they deliver to the world, Coca-cola

company is probably prized company globally. The remains the same with the effective business outline

put in place. The progress of the company proves that other competitors cannot withstand the

performance of the business. Operating in more than 200 countries proves that the company’s products

are accepted all over the world and therefore there is a steady flow of goods. The Coca-cola company

provides employment to many people in the world and more so supports human welfare projects. The

company cares and acknowledges talents too, I appreciate the effectiveness of the company in the society.

References

Stobart, P. ed., 2016. Brand power. Springer.

Gattorna, J., 2017. Introduction. In Strategic supply chain alignment (pp. 15-21). Routledge.

Aaron, D.G. and Siegel, M.B., 2017. Sponsorship of national health organizations by two major

soda companies. American journal of preventive medicine, 52(1), pp.20-30.

Smith, W.K. and Tracey, P., 2016. Institutional complexity and paradox theory:

Complementarities of competing demands. Strategic Organization, 14(4), pp.455-466.

Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.

Wirtz, B.W., Pistoia, A., Ullrich, S. and Göttel, V., 2016. Business models: Origin, development

and future research perspectives. Long Range Planning, 49(1), pp.36-54.

Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic

Management Journal, 38(1), pp.42-63.

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