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Table of Contents Contents Introduction Company Overview 1. Part A: Business Economics 1.1 PEST analysis 1.

2 Competitive analysis 2. Part B: Strategy and process 2.1 Strategy 2.2 Processes 2.3 Strategic Goals of Coca Cola 2.4 COCA COLAs strategic Options: Generic Strategies 2.5 SWOT analysis 3. Part C: International Marketing 3.1 International marketing 3.2 Market selection for international expansion 3.3 Market Development strategy: 4. Conclusion 5. Recommendations Reference and Bibliography Page No. 02 02 03 03 05 07 07 07 09 09 11 12 12 12 14 16 17 18

Introduction This paper aims to evaluate the strategic management of an organization. This strategic management is all about the pattern of decision and action taken by the company in formulating and implementing the strategies of the company. It will enhance the competition power of the company in the face of growing industries in this sector. To better practice the policies taken by the company, to reach in the target goals and objectives, to better utilize the manpower and other related resources of the company this strategic management is very essential. This also works as a chain in between the present situation of the company and the future goal where it wants to reach in future. It is basically directing the company for a better days and to make a position in the market (Barney 2006). Management is one of the core strategies of the company as it signifies the momentum of the company position and its importance in terms of controlling everything properly.

Strategic management consists of both internal and external process and decisions of the company and there are diversified areas to enter by the management for a smooth running of the company. To formulate the strategies, to ensure a proper environment and to make every individual of the company committed to the goals and objectives of the company and to bring out the best output from the situation, strategic management has a crucial importance for the company. The task consist of perceptions, proper presentations and a better understanding by the management and also showing the predictability or foreseeing capacity regarding the threat and opportunity for the company in future (Barney 2006). In this assignment the writer has analyzed the strategic management of Coca Cola Company of the UK division. Company Overview Coca-Cola is popularly known as Coke. It is an international fresh water trademark which is basically US company registered in 1893. A pharmacist who was a father of Coca-Cola started this business. The beginning time of its operation, US people described this company as a center of oral medication. Later, Asa Candler purchased it and followed new marketing strategy which made Coke world dominant in the world market of fresh water. He told that customers recognized Coke as their first medicine where it was a delicious fresh beverage.

1. Part A: Business Economics 1.1 PEST analysis This is an important analysis for getting a concrete idea about the organizational environment though this PEST analysis depends on the previous activities of the company but it has some core features to direct the future path (Wilson and Gilligan 2008).

Political factors The political atmosphere in Britain is always positive for the market and the governance system is also in control and supportive for the economic growth and development of the country, although it is yet to properly practice the policy jointly taken under the shadow of the EU. EU policies have always out of influence in the UK market and at present there is not a small chance for UK to get affected its clothing industry by the Union. But because of the agreement with EU in terms of the environmental sustainability there can be a small impact in the COCA COLA production and its providers.

Economic Factors In the economic sector UK is still in the superior level because of the strength of sterling compare to Euro. EU always inspire the import and export culture among the countries but because of the value of sterling it is tough for UK to go accordingly. It is known that Hamburger is much expensive in the local UK market than the outside countries. Definitely it will be a better option for COCA COLA to go outside UK as invest in the European countries can bring a handsome profit in the COCA COLA account.

Social Factors The changing dynamics of the socio cultural scenario has an impact in the market. There is a trend of early retirement and working ours is also getting limited in last 20 years. It means there is enough time for people to buy through a proper checking and comparing prices with other stores. It may have a negative impact for the company like COCA COLA. The emerging consciousness of the people because of the media about environmental issue, there is a tough moment and challenging job waiting for the companies to fulfill the demand and play in the market accordingly. Ethical issues are coming in the frontline nowadays. People are more conscious about the good and evil and also the socio cultural context in the corporate manner.

Technological factors The changing paradigm through the technological advancement in the business world has a strong impact over the peoples choice. Online business are taking place in the market and companies need to adapt with the growing trend of online shopping and also need to reintroduce the branding of the company product. Cheap technological support and easy access of internet also help to figure out and compare the product which is important to get noticed by the producer. The growing trend of online based shopping is also a challenge as the company needs to adopt this in the policy and implementation level.

1.2 Competitive analysis This analysis is for initiating new strategy in the changing competition among the companies and how the company can keep up this growth and profitability (Lynch 2007). Porters five forces model is well accepted idea in terms of this investigation.

Porters 5 forces model 2

Bargaining power of suppliers It is about the power of the suppliers and how they treat COCA COLA in terms of influencing but it is safe because COCA COLA have a long list of supplier. If one provider pressure for rethinking about the money and the other facilities it can switch to others and in many cases providers want to make it happen to bug the supply chain. In this regard there is a safe and flexible relation

existing in between the company and its suppliers in COCA COLA and this company is a long term beneficiary of this type of understanding between the authorities and the regular suppliers.

Bargaining power of the customers Customers are the key for company as they are the ultimate target for the company. A customer will cost for purchase and he will obviously go for bargaining. The individual customers is not a big threat but if a large portion of the clients demands for the reduction of price it will lead to a serious consequence and may affect in the total market culture. In terms of clothing there is slight difference among the companies so the impact in this regard is not that much threatening. In this regard to attract the customer a company needs to redefine the related values like promotion, branding, style and after all a good purchasing environment in the stores.

Threat of the new entrants in the industry For COCA COLA the new entrance is always a big threat. Small companies are not that much threatening as it needs huge investment to exceed the power and control of COCA COLA from the market. But large companies and outlets outside of UK is always a big challenge for COCA COLA as they have the power to capture and manipulate the situation. Company like Pepsi is a threat for COCA COLA as they are planning to enter in the market. It will definitely create an impact in the domestic market. The famous Land end company of USA, is already opened its floor in UK and the sales of COCA COLA is already in the down fall and it is estimated as 1.9%.

Threat to substitute products Factor of substitution is a big problem though the companies running now dont feel this as a big threat. Substitution for the products like coffee, tea and juice can impact COCA COLA. Besides, there has been a high potential of customers to substitute COCA COLA products COCA COLA can further develop its competitive advantage against substitutes through takeovers to minimize the potential of decrease in sales.

Rivalry among the current competitors There are various retail groups in UK market supplying the beverage products and this is a very competitive market. It is the indication how competitive the market is. This rivalry is all about the price and it is very unhealthy in terms of competing with each other. It is tough for the companies to keep the customer by decreasing the price it may even lead to the fall of profit of the largest companies in the market. Customers always search for good quality product but with fewer prices and it is almost impossible in some cases when the production cost takes a large amount. In this regard the companies that receive the supply from the third world countries get the benefit because they face less cost in production. It is kind of dilemma where the company is in between the selling and keeping the original price. High tariff in export is also a key factor here to increase the completion.

2. Part B: Strategy and process 2.1 Strategy Strategy is all about the planning of the organization for the future running pattern and remaking the management of the company. Fulfill the annual expected turnover is the key concern in the planning of the strategy and to reach the target audience is included too. Meeting the demand of the customer and to adapt the market environment is also the part of strategy. According to Hill and Jones (2009), strategy can be defined as a set of actions which is done by management to improve the respective concern in relation to the rivals. When a concern moves with superior performance then it will have some competitive advantages.

2.2 Processes
Strategic management is a combination of three main processes which are as follows:

Strategy formulation
Conducting a situation analysis; Concurrent with this assessment, objectives are set. These objectives should be parallel to a timeline; some are in the short-term and others on the long-term. These objectives should, in the light of the situation analysis, suggest a strategic plan.

Strategy implementation
Distribution and management of sufficient resources (financial, personnel, time, technology support) Establishing a chain of command or some alternative structure (such as cross functional teams) Assigning responsibility of specific tasks or processes to specific individuals or groups When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes.

Strategy evaluation
Measuring the effectiveness of the organizational strategy. It's extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and external) of the entity in question. This may require to take certain precautionary measures or even to change the entire strategy.

Components of Strategic Management Process

Components of Strategic Management Process

2.4 COCA COLAs strategic Options: Generic Strategies Generic strategy is all about characterizing the response from the customer regarding the policy and the strategy of the company. For maintaining a sustainable advantage in the market growth process, COCA COLA should use one of the generic strategy established by Porter.

Cost leadership is one of the core strategies initiated by Porter and it says to minimize the cost and sell more. It will be followed by the capacity of the company like COCA COLA through minimizing the production cost and other related issues. Cost leadership has a strong benefit in the emerging market where the rivalry among the groups is continuous in terms of catching the customer and maximizing the profit.

Strategy of differentiation is another strategy which provide the service and product with a unique feature and it will make the company different from the others existing in the market. Technological factors, promotional strategies are related in this sector. The 3rd strategy given by Porter is the approach in between the two potions discussed in the following. COCA COLA will focus on building the internal strength of the company so that it can easily face the external threat; It talks about the interaction with the concerned groups of the government and as well as the suppliers of the company products in the market.

COCA COLA can apply both the differentiation and the cost leadership approaches focusing on the product or the market; It will be a big problem if the company wants to go for implementing all three strategies. It needs a clear and straight approach to lead in the market.

Market objectives and Strategy implementation Strategic framework and structuring tool is the key to assess the market environment. Risks and value trade off make the situation explicitly in the way to lead the market. Planning for a better alternative, effective policy planning and acting accordingly is essential here for COCA COLA. From the previous discussion it can be said that there is two better options as strategies for COCA COLA if it goes for implementation. It is to develop the market oriented approach and increasing partnership through focusing on the diversity and new products launching.

2.5 SWOT analysis The word SWOT consists of strength, weakness, opportunity and the threat. It is all about exploring the external and internal factors that have an impact on the company (Lynch 1997). It involve in making list of the strength and weakness of the company and threat that have to face in coming days (Doyle P 2008).

Strength Coca-cola strength is the international popularity it has. Targeting the people in between the age of 20 to 40 is the big strength for COCA COLA as these groups are most interested in frequent market visiting and purchasing products. Though it is tough to satisfy this group but COCA COLA have a satisfactory record in meeting the demand of this group in terms of introducing fashionable dress, modern approach with the comfortable price. COCA COLA have a strong control on the quality management of the cloths and the behavior of the buyers because of its strong branding. Another Strength of COCA COLA is quality of its products. COCA COLA is very much careful about maintaining their quality of products and services so that they can meet the company requirement and customers needs. COCA COLA initiated its own system to control their product quality which is known as COCA COLA management System. This standardized process makes sure the maximum level of quality, health of customers and safety. CCA maintains a call center named Coke Connect to respond the queries of customers with right and correct information and service. This call center is also used to get the feedback from the consumers and it is recorded and sent it to the management for actions if requires. This call center helps Coke to remain updated with the best customer service.

Weakness E commerce division becomes a challenge for the COCA COLA as the trend of the market is shifting on the online based purchasing culture. There is a competition going on among the companies in terms of interpreting with the customers through internet and receiving order via internet. COCA COLA spent GBP 125000 in the internet as an alternative for telephone but its competitors like Debenhams invested more than 5m in the internet based technological development to get closer to the customer and to reply immediately. COCA COLA is behind other rival groups in terms of this online based shopping and connection with the customer. Other weakness of COCA COLA is focusing on the same style clothing patterns and suppliers in the market.

Opportunities COCA COLA is conducting their business operation around the world and they have made their own production plant and bottling facilities in most of the countries. It is a part of their business policy and thus they have achieved the top position in the beverage industry in the world. Some cases, they also adopt outsourcing to reduce cost. Lastly Mail order system becomes the key beneficiary point for COCA COLA as it has priority on the 20 to 40 years age group. They are not frequent in shopping. Mail order and reply is helpful for them and COCA COLA is strongly earning profit through this process. Among the high street shops it is the number one. In this circumstance it will be great for COCA COLA in capturing the foreign market by increasing outlets outside UK. Threats Rising competitive market and poor growth of the business sector is a big threat for COCA COLA. There are companies which are aggressive in capturing market even by unhealthy patterns. They are using the labor of the poor countries and this manufacture is supplying in the UK market in low rate compare to the home grown supply products.

3. Part C: International Marketing 3.1 International marketing Marketing department is responsible to sell the product to the consumers as per the market demand. Marketing managers are well aware of the nerve of the market. They need to have operational knowledge too. Without operations knowledge, Sales managers wont be able to meet the customers needs. That is why they are supposed to have proper knowledge about operations, production type, production schedule, the availability of raw materials, and the capacity of the production. In future, marketing managers can use their knowledge to set up future plan, future sales and promotional campaign. Operations wing is responsible for production in right time as per the calculated demand of the market. If there is no coordination exists between operations and marketing wing, it wont be possible to achieve the set up goal. Both departments must work together as a team. International marketing involves recognising that people all over the world have different needs. There are many companies which are operating in different parts of the world, a list of these are Cola-Cola, Nestle, Google, Microsoft. Coca-Cola is now itself an international brand in the beverage industry with its own marketing symbol. As CCA is now a part of Coca-Cola, it has now entrance to the worlds most popular branded beverages. They also have strong link with best advertising and unique properties. TCCC and CCA are doing their activities together to use their knowledge, skills and assets together. So both organizations develop their sales and marketing strategies together too. These entire have own brand identity in the world across the corners and borders. These businesses products have global audience and they have different marketing campaign to sell the products over the borders. People living in different area have different values, beliefs, languages and customs and so on. International marketing tries to find out the suitable corners where it can reach and where it can operate is business activities. Just as the marketing environment has to be assessed at home, the overseas potential of markets has to be carefully scrutinized.

3.2 Market selection for international expansion Relative research of emerging market potential is an expensive exercise for international marketers confronted with a multitude of diverse markets for which there is dearth of available research. Nonetheless, innovative companies are willing to shoulder the burden of looking at emerging markets (EM) that are commonly ignored because they offer growth potential through investment and sourcing opportunities. The international market shows some distinctive behavior in terms of it market structure and commitment. Internationalization of markets possesses transaction and cost analysis model as well (Coases, 2007). The explanation of developing network and adapting the environment, interacting with the stakeholders, interacting in the market can have implications how a company can enter into a country. There are more common characteristics and manners which are influential in building the organizational structure. According to Cunningham (2006) the business strategies, approaches and other perspectives of internationalization causes some newer forms of implications in making the strategies for the new market. The expansion of the decisions and strategies are some variable which always need to remember. In a study, Dunning (2008), suggested that the parties in the internationalization collects strategies from the economic theories and their choice of culture, modernization, ownership, localization all are inherited from some common senses and these decisions are also made of from creative tendency. The

accounts of export, import, firms efficiency, competitive advantages and other perspectives are enhancing internationalization.

3. Market Development strategy:

Joint development and strategic alliances Through entering new market suppose China and Japan COCA COLA can function as a chain to keep up the growth and revenue expansion. The choice of COCA COLA to enter in the market of Japan is all about focusing on the growing market as the Asians are more habituated in spending in this sector which is very significant for COCA COLA to capture and extract revenue from this land. The demographic priority is also important here in terms of leading in the market and receiving more profit. In terms of entering in the new market it is suggested to COCA COLA that it should ally with the local companies so that it can get some ideas about the pattern of the market and the demand and choice of the people. It is required for better practicing the resources. Besides, joint venture is a key pattern in the present business world. Developing product qualities it needs to have a touch of local culture and it will help in operating in the areas. In the joint venture business, the success is depending on the 3 issues and these are sustainable, acceptable and feasible environment in the invested countries.

Sustainability will focus on the appropriateness of the strategy decided to implement in the local market. It is about the expansion pattern of the company product. Acceptability is related to the profit estimated by the company and it needs to get approved by the shareholders as they will invest the money in a new world. Feasibility will check whether the taken strategies can properly implement in the local ground or not.

Product development and diversification A proper change in the market regarding the product and its quality, it needs to focus on the bringing of new items with diverse design and facilities. Service and delivery should restructure if the change is necessary and challenge to cope with the changing pattern is eminent (Johnson and Scholes 2006). Matrix of Ansoff suggest that if there is an arrival of new product in the market, there should have new strategy to develop the process of introducing people with the positive sides of the products and its affectivity. The managerial body of the company should concentrate on the initiation of the strategy development for the new product. To expand and diversify the new product of COCA COLA, it needs to enter properly in the market and should concentrate on the process of strategy development. Internal environment should have a vibrant picture so that the company can face the external challenge easily. The new change and the development strategy should have the similarity with the corporate culture and the current market scenario all over the world. Through a proper following of the decided strategy and sensing the demand and expectation of the customer COCA COLA can go further implementation in the market with its product. Research and development section of COCA COLA consider a special treatment and focus in this regard.

In the development process of COCA COLA there should have a special focus on the creativity and skill development of the employees as well the enhancement of the product quality and

design. It should go for a comparative analysis of the market and search the alternatives in terms of facing the difficulties and unavoidable situation like the price fall that happens in the market frequently. Innovative idea should get respected. COCA COLA can initiate a diverse plan in this market to attract the local people; the unique feature of the COCA COLA and the quality of its product will make them compelled to visit and get engaged with COCA COLA. The decision making process of the company is essential here to incorporate the innovative and creative ideas for the better operation and management of the company. Technological advancement and the incorporation of this process are essential for a sustainable strategic development of the company like COCA COLA. To acquire the comparative advantage from the rival market, COCA COLA should have better practice of its internal strength and rid of the external negative issues for a balanced situation. There should have definite goal decide by the authority in COCA COLA. It does not tell that innovation is all in all in the progress of the company and to achieve the desired profit of the company but it is true that without a proper planning and creative ideas a company can never sustain in this global competition.

4. Conclusion In discussing above about the strategic management of COCA COLA, it can be easily said that COCA COLA is enjoying superiority over the companys existing in the market with same product. It is earning profit from every corner of the world where it set the stores and started operation. It is growing rapidly in recent years no doubt. The intention to enter in more countries with a large investment is on the road to practice and implement. Its increasing trend of selling and catching customers is getting appreciated in the market. It is in such position where it can easily control the market by lowering the price of the product or by other related means. In the place of traditional single business culture, its inspiring the joint venture and cooperative business for the mutual interest and benefit. It is more concentrating on the online shopping culture and it is trying to reply and satisfy the customer within the fixed time period. COCA COLA is in a very high position of the UK market and the communication of the COCA COLA authority with the customer is very appreciating. It is a very important task for every company to make its own image and own identity which will project through the service it provides to the people. COCA COLA is very successful in this regard as it shaped the image and the identity which is leading the company for further progress in the competitive market. COCA COLA is well aware of the brand importance. There are many well established companies in UK like the British airways, Rover or even the Marks & Spencer which has failed to project a very strong branding concept but COCA COLA has done this with a significant success.

5. Recommendations:

Good quality and price Quality is always an important factor. COCA COLA should concentrate on receiving the product with less cost so that it can calculate in the purchasing pattern if it requires. The suppliers should have strong connection with the production process so that no mistake can take place or the late delivery can avoid. COCA COLA should maintain the chain of quality with the comprehensive price system so that customer feel attached. There should have an especial focus on quality ensuring as well lowering the price for capturing the market.

Relationship between COCA COLA and its environment As discussed in the PEST analysis about the growing voice for the environmental consciousness, COCA COLA should concentrate on this closely. It should assure the people about the environment friendly production. Company factory should erase the carbon emission and should focus on using the green energy in transportation and other means. There should have strong rule to demotivate the child labor and this should incorporate in the marketing strategy of COCA COLA. Everyone should get concern over the limited resources in the earth. COCA COLA is strongly inspiring people in this regard through using the plastic bag so that it can use repeatedly.

Reference and Bibliography Barney, J.B. and Hesterly, W.S. (2006): Strategic Management and Competitive Advantage: Concepts and Cases, Pearson Prentice Hall Hill, C.W.L. and Jones, G.R. (1995): Strategic Management Theory: An Integrated Approach, 3rd ed., Houghton Mifflin Hitt, M.A., Ireland, R.D. and Hoskisson, R.E. (2001): Strategic Management: Competitiveness and Globalization, 4th ed., South-Western Johnson G. and Scholes K. (2002) Exploring Corporate Strategy, 6th ed., Prentice Hill: London;

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