Industry and Company Analysis of Coca-Cola Company - Case Study Example

Industry and Company Analysis of Coca-Cola Company Name Course Name and Code Instructor’s Name Date Executive summary This paper entails an analysis of a sector of an industry, its subsector and a particular firm within the industry’s sub-sector.it looks at the success of the Coca-Cola company firm with reference to its competitors within the sub-sector of the industry. The company has come up with a strategy on how it will do its operations. The paper is also covers the strategy of implementing the project of marketing soft drinks only in the country of Australia. It covers the objectives of the company in as far as its penetration in the market is concerned. All of the objectives are clearly listed and explained. Then a SWOT analysis has been done to identify; strengthens, Threats, opportunities and weaknesses of the company (Finlay, 2000). Also the strategies to be used in operations of the company have also been laid down. The ways of managing the human resource has been also covered and the solutions to all the challenges that have been identified. The paper also covers in details the issue of finances, the list o the stakeholders as well as their responsibilities is also tackled. The corporate responsibility of the Coca-Cola Company is also covered in details. The is also an analysis of the Industry’s Porter’s five forces model to analyze the attractiveness of an industry The first step is opening of branches in every soft drink processing company. This means that in each of the main company that is concerned with the manufacturing or processing of that particular type of soft drinks, then we shall have a base of branding set up in that place. This ensures that the company is very efficient on its operations and also in its services. Also issues of working shifts. It will also avoid delays in case there is a great production of soft drinks that are waiting to be branded. By avoiding the issue of congestion, then it means that there will be a market flow of the product without having any shortage. Also so as to cut the costs in terms of workers payments, there is a strategy in terms of working. Every base or branch of the company shall have an operation manager who will be in charge of monitoring the operations of the branch. This is ensuring that everything will be flowing very smoothly. Finally, there is a description of how the company will adopt the market variables in an effort to satisfy the customers’ needs. Table of Contents Executive summary 2 Table of Contents 4 Introduction 5 Strategy analysis 6 Industry’s Porter’s five forces model to analyze the attractiveness of an industry 6 The coca-cola Company 8 OBJECTIVE FOR MARKET PENETRATION 8 SWOT ANALYSIS 9 Strengths 9 Weaknesses 9 Opportunities 10 Threats 10 Strategies to be adopted 10 Financial analysis 11 Corporate governance and social responsibility 12 Needs 14 Value option 14 Power 15 Reference 17 Introduction The company on analysis is called the Coca-Cola bottling company. Data and information will be collect through both the primary and secondary methods. The primary method will entail interviews and observation while secondary method will involve the use of available information from the office and website of the company. Some of the challenges encountered are the issue of time. There was a great need for more time to do the analysis and especially in looking through the secondary materials in the offices and website. The main aim of the report is to determine the success of the Coca-Cola Company both financially and in terms of its competitive advantage. There are threats that may be very challenging to an industry as well as the firms and they must be identified must be dealt with to ensure the production of the company is not affected. Issues like of customer shifts in terms of taste must be solved by ensuring that frequently a research is done to ensure that their needs are completely taken care of (Finlay, 2000). The issue of change of technologies will be dealt with in the sense that the manager will be kept updated on the emerging new technologies all over the market to ensure that the company too is using the new technology both for the purposes of impressing the customers and also so as to increase its production. Also new ways of marketing the company will have to be used. This is for example through the internet, media live adverts and through exhibitions. The fear of the introduction of new regulations can be dealt with by ensuring the manager is up to date with the regulation. In addition, he must ensure that, should there be a new regulation on the issues of branding or marking of products is put up, then the company must observe it with out any hesitation to avoid getting into problems with the laws enforcer, hence tarnishing the good name of the company (Gottschalk, 2005). Strategy analysis Industry’s Porter’s five forces model to analyze the attractiveness of an industry A Successful analysis of any company, organization or firm should ensure it has provided an external analysis of its environment. This is because the attractiveness of any business in a particular industry as well as the acquisition of a competitive position depends on the ability of the firm to attain a sustainable competitive advantage in the industry (Gottschalk, 2005). The analysis must however start from the industry to the firm so that the firm must ensure it has a long-term kind of monopoly for the purposes of maintain long-term kind of profitability. Overall, there has been a criticism because there are also some firms, which have sustained a high record of profitability irrespective of the industry they fall into. The firms within the industry are faced by challenges due to new competitors since the business of processing of soft drinks is very rewarding. Some new technologies are empowering new competitors in the market. Some barriers facing the industry due to new competitors include customer loyalty, capital requirements, government policies, cost advantages and brand equity (Hill & Jones, 2007). The issue of substance product threat is also another challenge. This is because the soft drinks are beyond just a common product in the market. This is to ensure variety in the market for the customers to make their choices. This ensures there is an increase in the quantity of products that are in the market available for the customers to purchase. The established rivals’ threat is one of the factors, which will determine the rate at which competition in the industry goes. In this case, there is a great deal of competition and the Coca-Cola Company must ensure it goes beyond doing what the other companies are doing. For any company to succeed, issue of branding, packaging and other strategies, which ensure customer royalty is sustained for both new and returning customers, must be considered. It is important to monitor the expenses of advertisement, web mastery, invent some strategies for competition, and come up with better competitive advantages like through innovation (Hill & Jones, 2007). Therefore, the companies must be able to cater for the problem through innovations, price fixation, and quality improvement Suppliers bargaining power, which involves the suppliers of both the raw materials and the finished products, represent the input market. This is because they bring the raw materials, labour, components, and other services like great expertise (Henk, 1998). The challenge can be overcome through strengthening the channels of distributions, ensuring labour unions are created. The industry has ensured that more than one supplier are involved in supply of raw materials to ensure the firms are not exploited by one supplier. Finally, the issue of customer bargaining power, which involves the pressure a firm, faces from its customers. For the Coca-Cola Company to attain a competitive advantage above other companies it is important for it to be price sensitive as far as its customers are concerned. Any company must ensure the channels of distribution are shorted because too much bargain can easily lead to loses in the company (Henk, 1998). The coca-cola Company The coca cola bottling company has been established in Australia after the First World War. It is a US company and so its establishment began by the distribution of products in Australia after it was ensured the country was opened for the foreign investors by the year 1979. The company has to date bottling joint companies totalling to twenty-four. The company operates as a total foreign owned kind of an enterprise. Most of the company’s operations are centred in Sydney. OBJECTIVE FOR MARKET PENETRATION Product marking refers to the process of putting a trademark on the product. It is also branding or putting a code on the products. This is one of the most important processes in as far as marketing and designing of the products is concerned. The counter of Australia is one of the most famous and very popular nations that are known to produce a variety of soft drinks. This means that if a drink whose new ingredients are coming up is not labelled there could be a problem of legal cases. This is because; many of the companies will be meeting in court with issues of brand or label stealing. This means that there is a great need for marking agencies to come up. There are a number of objectives for venturing into this type of market. First and fore most, Australia, have so many companies that are manufacturing the soft drinks. This means that there is an opportunity and possibility of taking over the business. Also due to the fact other companies have been doing it, Coca-Cola intends to be the best of the company that can offer the product (Peter, 2007). In addition, to be the best recognized and trusted company that offers such products in the entire of Australia. Also since, most of these soft drinks are being exported to other places in the whole of the world; it will be such a good opportunity to market it selves in other parts of the world where these soft drinks will be marketed. It will also be an opportunity to offer better products to the drinks processing companies other than what has previously existed. Finally, it is out to market itself as in that the product it is about to offers are of great quality and great uniqueness compared to what was being offered (Weaver, 2000). SWOT ANALYSIS There are a number of strengths, weaknesses, opportunities and threats that are associated with Coca-Cola Company venture. Strengths Some of the strengths include the great number of workers that the organization has who are able to do the great or high quantity of work very fast. This enables the organization to be very efficient and not just effective. In addition, there is the availability of new machines and equipments to perform marking or branding. This also entails the use of a new technology. In addition, there is a very good way of marketing the organization that has been identified. Weaknesses One the other hand, the weaknesses of the organization includes the great number of untrained personnel. Most of the workers are not up to date on the issue of branding so there is a need to train them. There is also a need for cash to purchase more machines and equipments to be used by the worker. The organization too has a number of opportunities that are very important in its success on venturing the market. Opportunities Some of these opportunities include the great need for the soft drink processing companies to have labels or branding done on the new products. In addition, many people are embracing the idea of consuming soft drinks as compared to the consumption of alcohol, which makes it an advantage for the company and especially in terms of market of its products. The fact that the company ahs already adopted the latest technology of product branding that is exist. Finally, there are no tight regulations concerning branding of products and so this makes it easy for the organization to excel. Threats Some of the threats that may be very challenging to the organization are the customer shifts in terms of taste. This is because as the technologies changes, then it means, the drinks processing companies will need new ways of marking the products, also the possibility of new regulations on product marking emerging. Strategies to be adopted The company has come up with a number of strategies to be adopted to remain competitive in the market. Therefore, for any, company to beat the wave, it must conduct a study on the issue that concerns the customer needs and then by coming up with a way to satisfy the need then the company will remain competitive (Salder & Craig, 2003). One of the greatest unmet needs in as far as the issue of soft drinks is concerned is the issue of food adulteration and brand theft. The company therefore is determined to uniquely put some secured brand names as well as to ensure its drinks are processed using the right ways and especially the use of HACCP (HAZARD ANALYSIS CRITICAL CONTROL POINT). This means that such a feature or advantage will only be found in the coca-cola products. In addition, the company intends to protect its brand to ensure that it is not used by other companies just like that. This means that the kind of design the company will use will only be available in the company only. In addition, the position of putting the mark has been a big deal as far as branding of the tins and containers is concerned. Some of the customers have suggested through the questionnaires we issued that they do not like it when their products or drinks bear the brand name on the outer cover. Others felt that it is good when their drinks tin or container have the brand name on the outer covers. On that note, they have come up with a strategy of putting the brand name on top for some of the tins or containers while on others we will have the brand name on the inside part of the tins or containers. By doing this, both of the customers will be given an opportunity to purchase the kind of a soft drink that is appropriate for them. Financial analysis There are four marketing variables, which must be utilized and mixed very well in their application if any company has to achieve its goals and objectives. These are: the place, the product, the price and the promotion. If they are well mixed in their application also the customer’s needs will be met without any failure. For instance, the issue of the product that is also the service we will be offering through marketing of the soft drinks, must be carefully considered. This means that any decision that has to be made. Issues of the appearances of the phone marks or the brand and the packaging will be carefully considered after finding put what the customers needs are. Pricing of the services, on the other hand will have to consider the issue of the profit margin the company is aiming at. In this case, also the issue of the competitors has to consider (Weaver, 2000). Shall actually lower our price or our charges slightly to ensure that we do not lose our customers to them. The place or the channels through which its services will be offered will be greatly considered. This means that it must for sake of cost effectiveness and for the efficiency; it will have to offer our services right in the companies that are involved in the manufacture of the soft drinks. The issues of promotion or rather advertising the company will be prioritized in that we have chosen the best of the methods of advertising methods to sell ourselves. Below is a cash flow End of year 2011(November) Cash flow End of year 2010(December) Cash flow End of year 2009(December) Cash flow $100 million $80 million $ 69million Corporate governance and social responsibility The market entry for any new or emerging company is usually the hardest task. This means that there must be plans or very good strategy put forth to ensure that the company markets itself in whatever way and in every place in terms of corporate governance. One of the ways is by increasing the advertisement. As it was earlier mentioned, we shall use the media, the live advertisements, exhibitions and the network to ensure sufficient advertisement. In addition, there is maintenance of quality production in an efficient and very effect way to ensure that the company remains in the market after its entry. This will be done through proper human resource management. Human resource manager if done well in any company means that the production of that particular company will be greatly boosted. Some of the ways we intend to that includes the issue of remuneration of the workers. This means that the workers according to their hard work will be frequently rewarded. In addition, the manager, will put effort to provide very favourable working environment for the workers to ensure that they are comfortable while in the work place. In addition, workers will be given leaves when need be and they will be all insured but at the expense of the company (Boselie et el, 2005). Lastly, the workers will be occasionally trained to keep them up to date with emerging technologies. This will ensure that they will not have any hard time in their work. In addition, the manager will be obligated to have a forum with workers occasionally to solve any of their emerging issues. This will leave the workers with a freedom to work efficiently and effectively as well increase their production. In any company, the human resource is one of the most important factors in as far as its production is concerned. This means that proper management of the human resources will definitely result to the success of the company (Timofeev, 2002). This means that the manger has a very great role in as far as the management of the employees is concerned. In this particular company, a good strategy of managing the employees has been put forth. First and fore, most, every one of the employees will be taken through the vision, mission, goals and objectives of the company. By doing this, the manager will at least be sure that all of the workers shall be putting their efforts towards the same. Also there will be the issue of remuneration of the workers (Boxall & Purcell, 2003). This means that the workers according to their hard work will be frequently rewarded. Also the manager, will put effort to provide very favourable working environment for the workers so an s to ensure that they are comfortable while in the work place. Also workers will be given leaves when need be and they will be all insured but at the expense of the company. Lastly, the workers will be occasionally trained to keep them up to date with emerging technologies. This will ensure that they will not have any hard time in their work. Also the manager will be obligated to have a forum with workers occasionally to solve any of their emerging issues. This will leave the workers with a freedom to work efficiently and effectively as well increase their production. There are a number of stakeholders who are associated with the firm. The government is one of the main stakeholders. Its main function or responsibility is basically in the financing also in streamlining the policy and laws aspects, which are associated with the industry. Needs Their main needs are to ensure we raise the amount of finances we need as well as help in the marketing strategy of the device in the market. On their account, the device is manufactures as well as brought in the market. They are indeed the main financial facilitator for the company. Value option The value is best at this point is trust. As a company there is a need to work with a stakeholder that is trust worthy to us as well as very committed to the success of the company because it can easy ruin the organization. Progress. Power The stakeholder can be beneficial in the sense that they must raise the finances but if they support the company‘s competitors then they will harm the company. To ensure the stakeholders do not end up supporting other competitors the company will ensure it is very transparent as well as accountable to the finances that the stakeholders will give. Also the company will be careful to meet its goals and objectives efficiently and effectively by setting SMART objectives. Defence option To ensure the stakeholders do not end up supporting other competitors the company will ensure it is very transparent as well as accountable to the finances that the stakeholders will give. Also the company will be careful to meet its goals and objectives efficiently and effectively by setting SMART objectives. 1. Summary and conclusion The needs of the customers have to be met. One of the needs that has been clearly sated by the companies are the issues of including an electronic device on the brand name or the mark which will be able to enable the customers or the consumers to track their tins or containers in case they are rebranded by other companies (Chandler, 2002). Another very important need from the customers is the issue of where the brand name should be located, as it was mentioned earlier; some of the customers want it to be inside the cover while other wants it on the outer part of the tins. This means that we will have to brand or mark some of the tins or containers in the inside while other on the outer part. By doing this we shall have met all the requirements of the customers as far as that issue is concerned For every project or every company to stand the test of time, the issue of its sustainability must be put into consideration. First and for most, this company, being in Australia where there are innovations on daily basis, it means that there is a need to be technologically updated. This means that time to time the company has to keep changing some of the ways in which it performs its branding of the drinks. Also the issue of acquiring new machines must be put into consideration (Thompson & Martin, 2005). This means that once in while, there will be purchase of new and modern machines. Still on the issue of machines, there will be a great need to service the machines and other working equipments on weekly basis. This is to ensure that the will never be at anytime be the incidences of machines breakdown lowering the companies production. Also to ensure that the workers are retained in the company, there must be ways and means to manage the human resource. Also there is a need for the company to avoid as much as possible the issue of employee turn over (Becker & Huselid, 2006). This is because if my employees are moving out of the company, then the production will be lowered since most of the resources will go into training of the new employees in terms of cash and time. Reference Becker, B. and Huselid, M. 2006. Strategic Human Resource Management: Where do we go from here? Journal of Management, vol. 32, no. 6, pp. 898-926. Boselie, P., Dietz, G., and Boon, C. 2005. Commonalities and contradictions in HRM and performance research; Human Resource Management Journal, vol. 15, no. 3, pp. 67-94. Boxall, P. and Purcell, J. 2003. Strategy and Human Resource Management, Basingstoke and New York: Palgrave Macmillan. Chandler , A. 2002. Management theory and practice. London: Thomson. David, F. 2002. Strategic management: concepts (9th Ed.). New Jersey: Prentice Hall. Finlay, P. 2000. Strategic management: an introduction to business and corporate strategy. New York: Pearson Education Gottschalk, P. 2005. Strategic knowledge management technology. 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