The Bucharest University of Economic Studies

Faculty of Management, 2 nd Year

Management by Objectives

Management by objectives (MBO) is a strategic management model that aims to

improve the performance of an organization by clearly defining objectives that are
agreed to by both management and employees.

MBO of Coca-Cola
Decision making is a key aspect to any business. To pick the best decision for any
situation you would need to know what your goal is, your reason, objectives,
strategies and tactics. Objectives, strategies, and tactics are crucial to a business’s
success. The main difference between those three terms are that objectives are
medium-long term targets, strategies are long term objectives, and tactics are short
term objectives.

Objectives give a sense of direction, unity, and purpose. They play a big role in
forming the foundation for companies in the decision making process. Objectives
can be communicated through mission statements. Strategies and tactics both refer
to a plan or scheme but strategies are long term plans that will have significant
consequences while tactics are short term and may be less significant in
comparison to strategies.

Coca-Cola Company:
Mission
- To refresh the world
- To inspire moments of happiness and optimism
- To create value and make a difference
 The Bucharest University of Economic Studies
Faculty of Management, 2 nd Year

Vision
People: Be a great place to work where people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.

I thought that the vision statement points were more in depth and detail in
comparison to their mission statement points when it should've been the other way
around. The mission statement was more abstract and broad whereas the vision
statement was more clear and direct. Both statements somewhat communicated
what their goal is for the future and where the company is at now and I thought that
both statements together did portray what the company was trying to achieve.

Objectives resulted from the mission ans vision:

The main objectives for the Coca-Cola Company are to be globally known as a
business that conducts business responsibility and ethically and to accelerate
sustainable growth to operate in tomorrow's world. By having these objectives, it
forms the foundation for companies in the decision making process.

Strategies and Tactics

The Coca-Cola company aims to be globally known, they do this by targeting
different areas across the globe with different products, gaining their brand name
 The Bucharest University of Economic Studies
Faculty of Management, 2 nd Year

and popularity. All the bottling partners work closely with their customers such as
convenience stores, grocery stores, movie theaters and street vendors to create and
use localized strategies developed in partnership with the Company. Their
competition with other beverage companies are also narrowed down as they own
various brands that could be possible competition. For example, the company sells
Coke without the competition of other popular soft drink brands like Sprite and
Fanta because the company owns those brands as well. The company often reviews
and evaluates their business plans and performance to improve their earnings and
analyze their competitive position in the market. They make decisions in realigning
their business models to match the objectives of the company by using strategies
and tactics in the analysis of their performance.

Sources:
http://www.thecoca-colacompany.com/ourcompany/mission_vision_values.html
http://www.thecoca-colacompany.com/citizenship/sustainability_roadmap.html
Image:
http://www.cokecorporateresponsibility.co.uk/media/39280/3.3_vision.jpg