Coca-Cola The 1

Running Head: COCA-COLA: THE BALANCED SCORECARD APPROACH

Coca-Cola

The Balanced Scorecard Approach

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 Coca-Cola The 2

Coca-cola: The Balanced Scorecard Approach

SLP. I.
Coca-cola Company (hereafter referred to as “the Company” or “the Organization”) is the
owner of four of the world's top five nonalcoholic sparkling beverage brands known to almost every
American. Coca-cola was established in 1886 and presently, it is operational in at least 200 countries
having at the minimum 90,500 associates worldwide and serving “1.5 billions” ( The Coca-cola
2008 p.1 )of customers each day .The Company’s overall goal, which is its mission is to “refresh the
world in body, mind and spirit, inspire moments of optimism through their brands and actions and to
create value and make a difference in all their engagements” ( Mission, Vision, 2006)
The Company is a manufacturer and seller of soft (carbonated) drinks with various brands,
the most popular of which is the banner brand, Coke. In assessing its success, the Organization does
not only count its monetary sales and profits but as well as its effect to the world in general. Coca-
cola Company tries to be open and accessible to everyone who needs information on anything it
does. Financial records, company information, customer-goal, investor values and press releases are
all accessible at the Company’s website, www.thecoca-colacompany.com.
Aside from the abovementioned mission, the Organization’s vision include the following
(Mission, Vision, 2006):
 People: Being a great place to work where people are inspired to be the best they can
be.
 Planet: Being a responsible global citizen that makes a difference.
 Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and
satisfy peoples' desires and needs.
 Partners: Nurturing a winning network of partners and building mutual loyalty.
 Profit: Maximizing return to shareowners while being mindful of our overall
responsibilities

Moreover, the Company’s strategies are incorporated in its values which include the
following:
 Leadership: “The courage to shape a better future”
 Passion: “Committed in heart and mind”
 Integrity: “Be real”
 Accountability: “If it is to be, it's up to me”
 Collaboration: “Leverage collective genius”
 Innovation: “Seek, imagine, create, delight”
 Quality: “What we do, we do well”

SLP II.
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Indeed, customer is very important. Without a customer, any financial organization would not

survive As Coca-cola’s way to retain existing customers and to encourage potential ones they have the

following guidelines:

Vision: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples' desires

and needs.

Mission: Refresh the world in body, mind and spirit.

Strategy: “What we do, we do well”

To follow the guidelines and achieve what it wants, a set of very specific objectives must be met.

The achievement of customer level objective, which includes “the satisfaction of customers, their

retention, and larger market share” (The Balanced Scorecard) makes the business perform better.Why is

the customer very important? Because there is a "direct correlation between financial results and

customer.”(Shaw, 2000, p. 37) The Company, to satisfy its mission and vision, through its strategies for

its existing and potential customers, the following objectives are setul:

 To satisfy customers with the gratifying taste of high quality products;

 The introduction to customers of products with diverse and fortified products that are

healthier.

 Production of healthy beverages lines which are tasty yet they are not damaging to

health.

The three objectives above are very important. The Company has acknowledge that “obesity and

other health problems” (The Coca-cola, 2008, p.12) may endanger the potential income of the Company

as well as its name, which can be fatal to a company that” established reputations world-wide, and

branding has enabled international reputations to be created" (Kay, 1995, p. 15). Looking from these

objectives, it can be seen that the third one is the most specific of the three. “production of healthy

beverages lines which are tasty yet they are not damaging to health” would result to the “introduction of
 Coca-Cola The 4

products taste diversity and fortification making them healthier” that would make customers satisfied

with gratifying high-quality (healthy) beverages. This achieves the strategy of the Company stating,

“What we do, we do well” and also its mission stating. “Refresh the world in body, mind and spirit”: an

unhealthy drink would not satisfy the mind and spirit.

“The following matrices represent the Coca-cola’s customer-level objectives and their

corresponding performance metrics and targets as well as innovative means and the relations to the

Company’s strategy, mission and vision:

Table 1. Identified Objectives and the Corresponding Metrics and Targets

for the Coca-cola Company

Objectives (1) Performance Measure/Metric (2) Level of Performance/ Target (3)

Bringing to the world a portfolio
of beverage brands that anticipate
and satisfy peoples' desires and
needs
The amount of worldwide sales and World recognition of the Coca-cola
profits. brands.
Obtaining overall positive reputation Positive responses to various products
worldwide. offered by the Company..

Internationally achieve popular and

excellent Company name.
Vision-Level Objective

Refresh the world in body, mind The sales volume and sales amount and All products are salable and customers
and spirit (through highly driven profit of the Company. do not have reasons not to buy them.
sales)
Mission- Level Objective

“What we do, we do well” The popularity of products and services Excellent product range.
as well as Company recognition by the
public.
Strategy-Level Objective

To satisfy customers with the
gratifying taste of high quality
products
The number of additional customers The products must have appealing taste
buying the products. to customers yet they are of high quality
beverages.
Sales volume and amount to “health-
conscious” market.
Customer Perspective

The introduction to customers of Customer response through the volume The availability of a wide variety of
 Coca-Cola The 5

Table 1. Identified Objectives and the Corresponding Metrics and Targets

for the Coca-cola Company

Objectives (1) Performance Measure/Metric (2) Level of Performance/ Target (3)

products with diverse and fortified of sales of the newly introduced vitamins and minerals-fortified, healthy
products that are healthier. products. and “non-obesity causing” products from
which the customers may choose from.
Responses of the “health-conscious”
market
Internal Process Perspective

Production of healthy beverage
lines which are tasty yet they are
not damaging to health.
The Company’s dedication on providing Continued research and development of
healthy products through provision of existing and potential products.
additional budget for the research and
development department.
Internal Learning and Growth Perspective

Table 2. Identified Objectives and the Corresponding Initiatives/Programs

for the Coca-cola Company

Objectives (1) Initiatives/Programs (4)

Bringing to the world a portfolio of beverage brands that Widening the reach of the Company by establishing strong
anticipate and satisfy peoples' desires and needs affiliations in various countries.

Flexible implementation of organizational policies depending

on the country governance where the Company chooses to
operate and sell.
Vision-Level Objective

Refresh the world in body, mind and spirit (through Heavy product and and brand promotions.
highly driven sales)
Providing greater returns to customers, adhering to their level
of satisfaction by providing good customer service, reliable
and affordable tasty products and selling them only the “real
thing”.
Mission- Level Objective

“What we do, we do well” Implementation of quality assurance, be it in the Coca-cola’s

products or in its service.

Strategy-Level Objective

To satisfy customers with the gratifying taste of high Create awareness on the quality of products and of products
quality products. themselves, either through media commercials or giving
away of free items.
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Table 2. Identified Objectives and the Corresponding Initiatives/Programs

for the Coca-cola Company

Objectives (1) Initiatives/Programs (4)

Customer Perspective

The introduction to customers of products with diverse Additions of compatible vitamins and/or minerals to
and fortified taste and ingredients, respectively, that are products.
healthier.
Internal Process Perspective

Production of healthy beverages lines which are tasty yet Reduction of fattening, obesity-causing ingredients from the
they are not damaging to health. products.

Greater research and development efforts from the Company

personnel involve on continuous improvement and product
innovation.
Internal Learning and Growth Perspective

The above targets aim "to improve the quality, performance and accountability" (Stevens, Stokes

& O'Mahony, 2006) of the Company. The metrics on the other hand which are the measures of the

performance must be properly defined or “owned” according to Arthur M. Schneiderman (2006) for it to

be useful. Additionally, initiatives provide “systematic methodology for managers, and employees, to

establish a wide variety of goals and objectives, into targeted and business-aligned viewpoints, and then

render detailed assessments and judgments” (Balanced Scorecard) as to the objectives’ success.

With the above identified performance targets, metrics as well as new programs and Company

initiatives to satisfy the customer-level objectives going upwards to its vision, the Company would have

a well-defined sets of activities and processes to truly achieve what their biggest goal is. Balanced

scorecard is indeed a very useful tool for organizations because it contains. "variables that make or break

a firm in the intensely competitive businesses " (Epstein & Birchard, 2000, p. 82) Although it is not

really the total measure, per se, it is something that “attempts to understand the phenomena” (Milgate,

2004, p. 8) of the business from various aspects.

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References

“Balanced Scorecard Initiatives.” Clear Thinking Lite, n/d. 22 May 2008.

<http://www.ctlite.com/bal.htm>.

Epstein, M. J., & Birchard, B. (2000). Counting What Counts: Turning Corporate Accountability to

Competitive Advantage. Cambridge, MA: Perseus. Retrieved May 23, 2008, from Questia

database: http://www.questia.com/PM.qst?a=o&d=88984324

Kay, J. A. (1995). Foundations of Corporate Success: How Business Strategies Add Value. Oxford:

Oxford University Press. Retrieved May 23, 2008, from Questia database:

http://www.questia.com/PM.qst?a=o&d=29059189

Milgate, M. A. (2004). Transforming Corporate Performance: Measuring and Managing the

Drivers of Business Success. Westport, CT: Praeger. Retrieved May 23, 2008, from Questia

database: http://www.questia.com/PM.qst?a=o&d=113133426

“Mission, Vision and Values”. The Coca Cola Company, 2006. 21 May 2007. <http://www.thecoca-

colacompany.com/ourcompany/mission_vision_values.html >.

Stevens, P., Stokes, L., & O'Mahony, M. (2006). Metrics, Targets and Performance.National

Institute Economic Review, (197), 80+. Retrieved May 23, 2008, from Questia database:

http://www.questia.com/PM.qst?a=o&d=5016613238>.

Schneiderman, A.M. (2006). Juggling Balanced Scorecard Metrics, Arthur Schneiderman Website.

23 may 2008. <

http://www.schneiderman.com/The_Art_of_PM/juggling_Metrics/juggling_metrics.htm>.

Shaw, R. (2000). 3 Shareholder Value or Stakeholder Value? That is the Question. InShareholder

Value Management in Banks /, Schuster, L. (Ed.) (pp. 36-null10). New York: St. Martin's Press.

Retrieved May 23, 2008, from Questia database: http://www.questia.com/PM.qst?

a=o&d=102459778
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“The Balanced Scorecard”. Quick MBA-Accounting, 2007. 23 May 2008.

<http://www.quickmba.com/accounting/mgmt/balanced-scorecard/>.

The Board of Directors, Coca-Cola Company. The Coca-Cola Company Financial Statements. 28

February 2008. 21 May 2008. <http://www.thecoca-

colacompany.com/investors/pdfs/form_10K_2007.pdf >

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