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ONLINE Management
ONLINE Management
1. Abstract ---------------------------------------------------2
2. Introduction ----------------------------------------------3
4. Ownership -------------------------------------------------4
6. Challenges ------------------------------------------------19-24
8. Recommendations --------------------------------------29-30
ABSTARACT:
“This particular case shows the overall analysis of the Coca Cola
organization. it is done by make analysis of the Coca Cola Company
through the PEST, SWOT and five forces of the analysis in the part one
and in the second part is the analysis of the internal and external
challenges face by the Coca Cola Company as the issues of the human
resource, employee and customers profit chain and other related issues.
And in external environment the overall issues of the competition and
technological advancement mentioned. The main purpose of this case
scenario to evaluate the current position and area of the development of
the Coca Cola Company limited.”
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Introduction:
Besides the selling of coke some soda bars are also provided by the Coca
Cola Company to some big and famous restaurants where fresh soft
drinks are available to the customers.
There are also some other famous soft drinks that are made by the Coca
Cola Company, such as; diet coke, zero cola coke, and lemon flavored
coke on some special occasions like Christmas, Easter, etc.
Ownership:
Strengths:
Coca Cola is the strongest and most valuable marque having the
largest number of loyal customers.
The products of Coca Cola Company are widely sold in more than
200 countries around the globe and Coke is the famous soft drink
of many restaurants.
The advertisement and promotion activities of Coca Cola are more
than any other soft drink manufacturing company of the world.
It has strongest arrangement of bottling.
The distribution channel and production plants of Coca Cola are in
excess around the world,
The bad perceptions about Coke caused due to the flop formula of
the New Coke, due to which people started to replace Coke with
other soft drinks like Pepsi.
The burden of debts and loans that are being faced by the company
due to which financial institutions hesitate to grant more loan to
the Coca Cola company.
The company suffered loss in 2008 when a dispute arose between
the whole sale prices of the Coke due to which Costco banned the
refilling of Coke and Diet Coke on their shelves.
The product range of the Coca Cola Company is only limited to
beverages only.
Opportunities:
Coca Cola should launch some new beverages that are produced on
a smaller scale because the customers of United Kingdom prefer
soft drinks that are produced on a smaller scale.
Coca Cola should launch some healthier drinks as the trend of
health conscious people is increasing day by day.
The supply of coke to more restaurants can grant Coke competitive
edge.
Threats:
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A five step framework was designed by Michael Porter in 1979; this tool
is helpful to measure the business strategies and the industry analysis.
(Michael Porter, Nicholas Argyres, Anita M. McGahan)
1. Business Rivalry:
There are very few rivals of Coca Cola that exist in the market.
The main rival of Coca Cola is Pepsi which shares 80% of the
market shares with Coca Cola equally while 20% market shares are
with other beverages manufacturers. The main business rival of
The bargaining power of Coca Cola with the suppliers is very low.
The primary role of Coca Cola was to buy fructose or sucrose and
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to commence the bottling work with the help of its suppliers. The
company must maintain good relationships with its suppliers as the
suppliers can charge higher prices because the substitutes are not in
abundant quantity.
Coca Cola has great threat of substitute products that are tea,
coffee, Pepsi, beer and some other soft drinks. (Cola Wars, 1991).
If the cost of switching to these substitutes is low and the
substitutes offers the more in taste and quality then people will quit
buying Coca Cola products and will switch to substitutes. In this
regard the company should take special care in maintaining the
quality of its products that offers the most in taste than its
substitutes.
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Challenges:
There are internal as well as external challenges that are faced by Coca
Cola Company. Since early 2000’s Coca Cola Company and its products
have been criticized by regulatory bodies and the consumers. Criticism
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has been made due to the health problems caused by coca cola,
monopoly of its products and poor record of environmental factors, due
to which pressure groups like “Killer Coke” have been formed.
Packaging
Marketing
The marketing of Coca Cola products has always been a challenge for
the company. In 1993 a study about the marketing practices of Coca
Cola in the United States was published by a journalist named Mark
Pendergrast.
Health Effects:
claiming that the acids and chemicals used in the products of Coca Cola
Company are dangerous.
There are also some cases in which it has been proved that coca cola is
no more harmful than any other soft drink present in the market. If such
soft drinks are used in excess than teeth’s start to decay.
Wages:
There are blue collared workers as well as white collared workers and
the salary packages of both types are different and competitive with
respect to the tasks they perform.
In this modern era only those companies are successful that are time
efficient. Coca cola is trying its best to fulfill the demands of its
customers in a timely manner. Daily billions of coca cola bottles are
being used by the consumers all around the world and such a huge
demand is met only with the help of time management.
Financial Analysis:
The products of coca cola used daily are in billions worldwide and to
meet such huge demand; lot of finance is required by the company. If we
see the financial reports of coca cola, it can be seen easily that the
company is earning huge profits for last few decades and due to the fine
taste of the Coca Cola’s products it is getting highest dividends for the
last 49 years in a row.
Racial Discrimination:
A lawsuit was filed against Coca Cola due to unfair treatment with the
minority employees working in the U.S and to settle this law suit Coca
Cola paid $192.5 million in November 2000. Another racial
discrimination incident took place in 2003 when the protestors at the
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annual general meeting sued Coca Cola that white men are preferred
over black men and key positions are only offered to white men while
black men are fired more frequently (Ben White, 2002)
Due to the settlement of racial issues Coca Cola was made compulsory
to observe management practices due to which the company is now in
the list of top 10 for its diversification.
External Challenges:
External Competition:
Technical Challenges:
In this modern age only those companies can survive who are in a habit
of diversifying their products from time to time. Change in technology is
an external challenge that is being faced by Coca Cola Company. In
order to remain the market leader Coca Cola must acquire the new
technology so that it can bring latest improvements and changes in its
products as today’s customer demands uniqueness.
The 7-S framework was presented by McKinsey in late 70’s. All the
factors of this framework are related to each other and have a direct
impact with the performance of any business organization. The 7-S
framework consists of following factors:
Shared Values
Skills
Staff
Strategy
Structure
Style
Systems
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This framework is effective only if all the seven factors are working
properly. If the Coca Cola Company wants to minimize the HR issues
and improve their control and management system then this model must
be applied practically and effectively. The desirable performance can
only be attainted if all the seven elements are implemented effectively.
1. Shared Values:
Following are the shared values of the Coca Cola Company (UK):
Leadership
Passion
Integrity
Accountability
Collaboration
Innovation
Quality
Coca Cola knows what its shared values are and the importance of these
shared values in the growth of the company. All the above seven factors
are responsible for the success of Coca Cola. The purpose of existence
of the company is depicted by its shared values and due to this reason
the element shared values in placed in the middle of McKinsey 7-S
framework.
2. Skills:
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Skills include both the individual and institutional skills that are
important for the growth of Coca Cola. Due to globalization the
acquisition of skills has been made easy and the company can hire key
players of the world to work for it. Coca Cola has hired many workers
from all around the globe and all the workers are highly trained and got
necessary skills that are needed for the growth of Coca Cola Company.
3. Staff:
Staff plays as important role in the growth of the firm as a manager.
According to the Coca Cola Company, its employees are the core and
soul of the company who fully devotes themselves to make Coca Cola a
distinctive part of people’s lives all around the globe. The fine staff of
Coca Cola is the main reason due to which it had survived over the last
120 years and has won the hearts of many consumers. The staff of Coca
Cola has led the success of the company by working with full passion
and devotion so that to refresh every single consumer who buys the
products of the Coca Cola Company.
4. Strategy:
Coca Cola is the largest manufacturer of beverages ion the world and is
offering almost 3500 beverages in more than 200 countries. The
business strategy of Coca Cola is to increase its sale volume, market
price per share and to add to the economy of every country in which it is
operating. The main strategy of Coca Cola Company is to hire skilled
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workers that are experts in their work and can give innovative ideas to
the company.
5. Structure:
The corporate structure of Coca Cola is divided into 6 operating
segments. The first five are referred to as SBU, which is the base of the
company’s financial reporting system. The flow of communication is
from front line workers to top level workers. The chief operating officer
of each strategic business unit reports to the Chief Executive Officer and
the Chairman of the Board of Directors who is E. Neville Isdell.
(Richard Girard, 2005)
6. Style:
Style means the way an organization is leaded. The top managers of the
Coca Cola Company have set four codes of social responsibility by
which they lead the company. The codes are:
Providing quality in the marketplace.
Enrichment of place of work
Preserving the environment
Strengthen the community
7. Systems:
The system of Coca Cola is more effective in the present as it was in the
past. The current system is working for customers, suppliers,
shareholders, and for every one that has some interest in the company.
Recommendations:
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1. Create Urgency:
A change can only take place if it is urgent and important, to adapt the
change an urgency regarding the change must be developed amongst the
employees. This sense of urgency will give some motivation to the
employees so that they will start working on the requirements to acquire
the change.
After creating the urgency the management of Coca Cola should present
reasonable arguments to its employees regarding the importance of the
change. For convincing the employees the manager of the company
should be an effective leader having strong influence on the employees
of the Coca Cola Company.
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The manager should form a union along with some effective and expert
employees so that the team can work to further build the urgency
amongst other employees.
Clearly state the benefits of bringing the change in the future and devise
a strong strategy to adapt the change successfully.
5. Remove Obstacles:
In this step the unions and the management of the Coca Cola Company
should talk about the success of the change adapted and should tell
success stories to the new employees as well the business partners.
Conclusion:
After a detail analysis of Coca Cola Company one can conclude that
though Coca Cola is the largest beverages manufacturer of the world still
there are chances of improvement. The company is known for its
product and is known all over the globe. Instead of being a well-known
company, it has to encounter few problems and complications in present
age, and these problems can drag the company to many other problems
in future which can cause adverse effects on the company’s
performance. The management of the company should overcome the HR
issues so that it can earn more profits in the future. Coca Cola can
become a major threat to new entrants if its product line is extended to
food products too as the main rival of Coca Cola Pepsi is offering many
food products which hinders the growth of Coca Cola in front of Pepsi
sometimes. Coca Cola should put hard efforts to convert its weaknesses
to its strengths and to eliminate the threats. To survive in this modern era
the management of Coca Cola must take necessary steps to diversify
their product line from time to time in order to remain in competition.
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Ehlen LA, Marshall TA, Qian F, Wefel JS, Warren JJ (May 2008).
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Res 28 (5): 299–303
Dugmore CR, Rock WP (March 2004). "A multifactorial analysis
of factors associated with dental erosion". Br Dent J 196 (5): 283–
6; discussion 273
Moss SJ (December 1998). "Dental erosion". Int Dent J 48 (6):
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