Function of management

 Planning:
Likewise every other industry and company has the ambition of having maximize
profit margins of what is the same with coca cola. They aim to maintain a long
term sustainable growth with the beverages industry. They are eager to refresh
the world.
These are the following three competitive advantages in order to achieve and
maintain Coca Cola Company:
 Cost leadership; by changing into the lowest cost producer
 Differentiation: by being exclusive and unique in the industry.
 Focus: by selecting a narrow competitive scope within the industry.

 Organizing:
There have been five basics strategic plan coca cola has been following to achieve
its aim:
1. “WE FOCUSED ON DRIVING REVENUE AND PROFIT GROWTH”
Creating value for the Company and customers looks different in different
countries. They used segmented revenue growth strategies across the business in
a way that varied by market type.
2. “WE INVESTED IN OUR BRANDS AND BUSINESS”
Healthy businesses require continuous investment to invest in more and better
marketing for related brands, increasing both the quantity and quality of
advertising. They invested across our expansive beverage portfolio. They
improved their position in the energy category with a strategic new partnership
with Monster Beverage Corporation, Suja, a line of premium organic, cold-pressed
juices, and agreed to buy China Green Culiangwang, a plant-based protein
beverage brand. 

3. “WE BECAME MORE EFFICIENT”

They increased their efficiency and productivity while reducing costs. The
company also cut spending on non-media marketing like in-store promotions. And
found new savings in supply chain around the world.
4. “WE SIMPLIFIED OUR COMPANY”
Few industries have changed more rapidly in recent years than the nonalcoholic
beverage industry. Evolving consumer tastes and preferences, to determine who
wins in the marketplace. To seize this opportunity, coke took steps to reshape the
business. They looked hard at our operating structure and identified areas where
they could be faster, smarter and more efficient. 

5. “WE REFOCUSED ON OUR CORE BUSINESS MODEL”

The Coca-Cola Company has always been a creator of refreshing beverage brands.
Today, their expansive portfolio includes more than 500 brands, including
sparkling beverages, juices and juice drinks, coffee, tea, sports drinks, water,
value-added dairy, energy and enhanced hydration drinks. Among these brands
are 20 that generate more than a billion dollars in annual retail sales.

Another core competency has been our ability to lead the world’s most
sophisticated system of independent bottling partners while creating value for
their retail and restaurant customers. Over the years, they’ve acquired and
managed a number of Coca-Cola bottling partners with the aim of improving
performance, optimizing manufacturing and distribution systems, and ultimately
refranchising the bottling territories back to independent status.
  Leading:

On the macro scale coca cola’s market dealing lead a slogan of ‘taste the feeling’
which the launch more than a decade ago as it continue to prosper. With this
campaign and our broader “one brand” strategy, they’re letting consumers know
they can enjoy Coca-Cola with calories, fewer calories or no calories and with or
without caffeine. The choice belongs to each individual, every time he or she
reaches for a delicious and refreshing Coca-Cola. All over the globe they are
available, affordable, and acceptable (legally). They annually spent a billion dollars
for their market campaign. In parallel they aligned employee incentives
accordingly. In emerging markets, they focused primarily on increasing volume,
keeping beverages affordable and strengthening the foundation for future
success. In developing markets, they struck a balance between volume and
pricing.

 They increased spending on media advertising by more than $250 million, and
they used these funds to share stronger, more impactful ads.

 Controlling:

The company has declared that they are working on improving the water efficacy.
They have increased their efficiency and productivity while reducing costs and
also cut spending on non-media marketing like in-store promotions. And found
new savings in supply chain around the world.

The most important thing about this company is that even though they evolve to
every extend but the old traditional taste of coke will remain same which no
doubt ensure their legacy since decades.

Second most important thing is that they have maintained their macro and micro
environment.

Macro environment:
Company is able to identify its opportunities and threats, as external factors do
affect the organization e.g. political legal, social culture, economics, technology,
environment, legal, etc.

Micro environment:

To analyze the micro-environment and its factors, we use the Porter’s five forces
model to identify the existing industrial factors, which include the following:

1. Threat of new entrants:

Threat of new entrant is the result of new competitors joining in the industry,
causing the company to develop competitive advantage and maintain the market
share. Hence, competition within the industry becomes higher. Coca-Cola would
need to create a strong brand image. By creating brand image, customers would
be more likely to stay with the product and therefore the threat is reduced. 

2. Rivalry among existing competitors:

The major competitor for Coca-Cola is Pepsi. To reduce the rivalry among existing
competitors, company should try to differentiate their products or even consider
buy out competition in order to help them grow.

3. The bargaining power of buyers:

If the company is serving to industrial customers, they should be awarded that

4. The bargaining power of suppliers:

The bargaining power of suppliers in soft drink industry is considered strong.

Change in social concerns, attitudes, and lifestyles are important trends. In the
recent century, people are becoming more concerned with a healthy lifestyle.
“Consumer awareness of health problems arising from obesity and inactive
lifestyles represent a serious risk to the carbonated drinks sector” 

Strength in SWOT of Coca Cola.

Brand equity: the company was awarded by the highest brand equity in 2011.
Coca cola with its vast global presence and unique brand identity is definitely one
of the costliest brands with the highest brand equity.

Company valuation:  One of the most valuable companies in the world, Coca cola
is valued around 79.2 billion dollars. This valuation includes the brand value, the
numerous factories and assets spread out across the world.

Vast global presence: Coca cola is present in 200 countries across the world.
Chances are, any country that you go to, you will find coca cola present in that
market.

Large market share: There are only 2 big competitors in the beverage segment
Pepsi and Coca cola. Out of these 2, coca cola is the clear winner and hence has
the largest market share. Amongst all beverages, Coke, Thums up, sprite, diet
coke, Fanta Limca and Maaza are the growth drivers for Coca Cola.

Name: Azan Kamran