Application and Skill Development †Free Samples to Students

Question: Discuss about the Application and Skill Development. Answer: Introduction Coca Cola is one of the leading and most famous companies. It has a huge market and has been in the industry since 1886. Coca Cola thrives for the next ten years and beyond, they understand their forces and trends that will shape their business in the future in order to move swiftly to prepare what is coming next. Their mission is stable, permanent and durable. This declares the purpose of the company as it serves their decisions and action to make a difference and create a value for the company, to inspire peoples moments of happiness and positivity and also the main mission is refresh the world with their drink (De, 2013). There vision serves as their framework for their guides and roadmap which describes and guides every aspect of their business that they need to accomplish in order to continuing achieving, quality growth and sustainable power. They want their employees to be comfortable and give the best work and be inspired, they want to bring a portfolio of quality beverage bra nds which anticipate and satisfy peoples needs and desires. Another important vision of this company is to nurture a winning network of customers and suppliers, which together they create mutual and long-term value. They also want to maximize long-term return to shareowners while being mindful of their overall responsibilities and the company wants a fast-moving and highly effective organization. Coca Cola had a long and eminent history of marketing success. Its an old company and therefore in the past it had different sets of strategies. Its advertising is much of what has made the brand the powerhouse that it is today. However they have taken various wrong steps like introducing the New Coke, which failed badly in the market. New coke came in the market when the company decided to terminate the most popular soft drink and replace it with a formula. New coke was a huge brand failure of Coca cola brand (Lussier Achua, 2015). The competition in that time was close between Pepsi and Coca cola and even decades prior to the launch of New Coke. In the past their strategies mostly depended on their consumers and share holders as the concept of social media was not there in those times. Their strategies mainly reflected on their advertisement and billboards. However as Pepsi repositioned itself as a youth brand, this gave their older customers to Coca Cola, but Pepsis sweeter formu la became a hit. Coca learned that marketing is much more than the product itself. For instance when the advertisement of New Coke when it came on the TV it ran with an old man sitting on a park bench staring at the can in his hand, and he said they changed my Coke, it was said in clear distress, further he said I cant believe it. This strategy failed as it demoralized the new old customers. (Johnston Marshall, 2016) Earlier their strategies were to clone the rivals which went wrong, the market research was not clear, they believed in marketing is a battle of perception, not product. Current Strategies Coca cola is running in 200-plus nations and each of those nations plays an important role in their growth plan. Their main strategies is to focus on the driving the profit growth and revenue, they segment their revenue growth across the business in their varied type of market. Coca colas market primarily focuses on increasing volumes, keeping affordable beverages and strengthening the foundation of the future success (Reilly Hynan, 2014). They struck a balance between pricing and volume. Their strategy in segmentation has proved to be a hit. Another strategy of theirs is that they invest on their brands and business. At present they are focusing on investing and expanding their brand portfolio. They spend a lot on advertising media by more than $25o million, to give more impactful and stronger ads. Earlier they introduced New Coke and to an extend thy tried to copy Pepsi, but now they are more independent in their ideas like Diet Coke, Coca Cola Life and Coke Zero. Their brand stra tegy was to tell their consumers that now they have an option to choose between Coca-Cola which has calories, to move to fewer calories or no calories. By giving this choice to each individual it became refreshing ideas (Holt, 2016). Journey of Coca-Cola Strategy It is obvious by the previous report that how their strategies have changed through years and with that the growth and development of the company also increased. They became more efficient, they took steps to rebuild their growth momentum, and they invested more for better marketing and also amplified their financial flexibility. These resulted in the increment of their productivity and efficiency while reducing the costs. Overall they were able to get more than $600 million in the improvement of productivity that they used to invest further in their business and brands and also to give back their shareowner. They have simplified their company with time and strategized according to their preferences and taste, which coupled with new innovations in the supply chain and retail landscape, with empowered employees that win the marketplace. They took new steps to reshape the companys business and refocused on their core business. Today they have more than 500 brands, which include juices, juice drinks, coffee, tea sports drink, enhanced hydration and sparkling beverage (Dawar, 2013). They have introduced different typed of vending machines which also attracts the customers. This shows the growth and development of the company with its change in strategy from the past to present. To understand the growth and development of the company it is very important to analyze the companys strength, weakness, opportunities and threats. Coca Cola has an implausible brand identity. This brand name is a home name for millions around the world. The valuation of this company is around 79.2 billion dollars, this valuation includes, numerous factories, brand values and assets spread across the world. It also includes the vast global presence of the company which means the company is presented in 200 countries across the world. It also has the biggest market share. They have a strong customer loyalty and the taste of Coca cola makes it easy to identify and hard t find a substitute for their customers (DuBrin, 2015). They have the largest distribution of network which is another huge strength of theirs. There market demand is very high, has a successful distribution of network. One of the main weaknesses is their competitor Pepsi. Even though Coca Cola seems to be leading, but it could win the market completely if Pepsi was not there on their way. Another important factor is the low product diversification; Pepsi has expanded into producing snacks segments with products like Kurkure, Lays, but Coca cola is missing from that segment. People have become concerned with diabetes and obesity. Coca cola is a major carbonated drink manufacturer which can cause obesity. Opportunities Coca cola can create their own products and can diversify their present offerings. They already have their brand identity, customers and manufacturing evaluation to back this up. Coca cola is present in 200 countries, but however they could focus more on moving into developing countries which has more humid characters. These countries will welcome Coca Cola more than because of their climate condition. Coca Cola has a presence in the packed drinking water segment through Kinley, hence Coca Cola should focus on the expansion of Kinley as a brand and take up to Bisleris trust level. They should also keep a check on their supply chain as their business is hugely based on the distribution and transportation. Coca Cola needs to focus on the marketing of the product portfolio to get acceptance in the market. However Coca Cola has made several expenses to launch these products in order to increase the sale which will help revenue of Coca Cola. Coca Cola was alleged of using pesticide in their water; however the water is also becoming limited because of their climate change. Coca cola will need plenty of water in order to build their empire. Coffee chains like, Caf coffee Day, Starbucks are on the rise. These are often considered to be a competition of Coca Cola. STRENGTH Valuation of the company, Brand Equity, Huge Global Presence, Biggest Market share, Superb marketing strategies, Loyalty of the Customer, Network Distribution. WEAKNESS Competitions, Diversification of Product is low, Heath beverage absence, Management of Water OPPORTUNITY Diversification, Developing Nations, Packaged drinking Water, Improvement of Supply Chain, Lesser Selling product in the Market. THREATS Indirect Competitors, Raw Material sourcing. PESTLE Analysis Coca Cola are distributed in 200 countries. These countries have varied cultures, customs, desires and tastes. However Coca Cola has updated from before and has updated its products by producing new flavors to accommodate their customers. They have more that $80 billion worth equity. However people are looking for healthy drinks these days but Coca Cola is taking minimum efforts to move in that direction. Coca cola distributes the majority of its products in good cultured countries. Therefore they meet the demands of these customers, for instance in Japan they created 30 alternatives flavors to attract the Japanese consumers. They are making similar efforts in China. However in America they are more focused on their health, therefore there replacing sugary drinks for waters and teas as these drinks are better for their health. In the figure below, the amount of coca cola consumed in the US has experienced a firm decline in the past 15 years. Machinery has helped Coca Cola to manufacture better and higher quantity of products. Coca Cola has its factories in Britain with top machineries that ensure fast delivery and the development of quality of product. With the change in the society, the social media also plays a huge role in the growth of Coca Cola. It helps the company to connect better with its audience and introducing picture of the bottles with their mane on it. The pictures are given on all the social media sites like, Facebook, Instagram and many more. Coca Cola holds all its rights related to their business, including future and past developed products with a original process. Environmental Factors Water is dominant factor for Coca Cola and it cannot function without it, in that case if the climate changes then the company will face a huge loss. Though this will also hamper their competitors as well, but because Coca Cola is a soft drinks company, with the accessibility of water, the company will suffer a huge loss. Coca Cola has to adhere to environmental laws as they manufacture their products (Coleman, 2013). Therefore they depend a lot on environment. They also take advantage of the places that has humid climate as people prefer cold drinks in order to cool down. Coca Cola has a very effective leadership and there can be no replacement for their strategic thinking and relentless and tireless execution. They have transformational leadership, as there can be no alternative for retaining and attracting the best people to lead and create a dynamic environment for them. Nothing can be more effective than transforming leadership, as it changes as per the necessity of the organization as well as the change in the society and the needs of the consumer and the stakeholders. Coca Cola has achieved this by formulating a clear and compelling vision, by getting their system aligned behind it b y continuously executing and communicating with the outer words. Their employees are enthusiast in nature and has worked very hard to help the company to reach the position where it now. This leadership has helped the company to harness new wealth, new beverage requirements and new innovations to accelerate growth and create the worlds most respected consumer goods system. This new wave and adapting new techniques and innovation has helped the company to grow, therefore this leadership has helped the companys employ to align behind the vision of the companys growth (Ayub, Muhammad Hanan, 2013). Conclusion The Coca Cola Company has come a long way with the above mentioned strategies, vision, mission and analysis. The company has proved its standard and has developed a close leadership with its franchisees based on the mutual concern of equality. This report will help to analyze the position of the companies and will help to measure the exact growth of the company. References Albert, P. J., Werhane, P., Rolph, T. (2014). Introduction. InGlobal Poverty Alleviation: A Case Book(pp. 1-11). Springer Netherlands. Ayub, A., Adeel, R., Muhammad, S. A., Hanan, I. (2013). A conceptual framework on evaluating SWOT analysis as the mediator in strategic marketing planning through marketing intelligence.European Journal of Business and Social Sciences,2(1), 91-98. 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