The Coca Cola Company

Introduction

Coca-Cola is the largest soft drink manufacturing company in the world.

The company operates in many countries across the world, only specializing in the manufacture and distribution of soft drinks.

Some of the other factors that have contributed to the success of the company include; a successful marketing department and distribution chains that have become a case study around the world.

History of the CompanyThe enterprises of Coca Cola Company were

established in 1986 in the United States.The bottling business of the company helped

it to expand to other regions in the US. Through effective management strategies,

the company was able to achieve growth in the market share

Supply Chain ManagementCoca-Cola Company has a unique supply

chain that has helped the company achieve its global status.

The supply chain uses different tactical and strategic decisions in order to deal with day to day changing environment of the market.

The supply chain department uses root-cause analysis to supply its products to consumers hence covering its supply.

Structure of Supply ChainThe structure of the supply chain used by the

company is one of the complex chains.The company has a franchised system of

supplying its products at the downstream level.

One of the strategies used by the company in the selling of its products is called demand focusing.

Coca Cola’s Strategies The supply chain collaborates with the

marketing departments to ensure that all the products have been marketed on time.

The management of the company advises the distributors on the methods of placing their products strategically for the consumers to see them on time.

The main strategy used by the supply chain department is advanced scheduling and planning.

Product Development ProcessInnovation is the key corporate strategy used

by Coca-Cola Company in the improvement of its functioning.

The model is based on considerations such as risk analysis, investment plan, marketing plan, technical feasibility.

The company uses diversification strategy to develop new products for new markets hence ensuring continued growth.

Product DevelopmentThe development of the new product begins

with an idea from the marketing teams.When launching the product entails the

company partnering with different suppliers of the ingredients required to build a new product.

The marketing department comes in to launch the product to new market segments using its techniques.

Purchasing Of Capital Equipment and Services:The purchase of property, capital and plant

equipment by Coca-Cola company is one of the tedious and slow processes.

The company is involved in various strategies of acquiring new machines, plants and land that are used in the production of new products.

OutsourcingCoca-Cola Company uses different strategies to

determine whether to outsource a product or to develop in house.

Some of the factors considered in the company include; cost, benefit and risks involved. The management of the company analysis some of the cost drivers in the company in order to identify the cost factors in the production of new product.

The management also considers the benefits of producing of outsourcing the product. Some of the factors considered at this stage includes the system availability, product cycle times and cost savings for the company

Contract IssuesContract issues such as defaults and breach

in contracts often occur in the procurement of the company businesses.

For instance, the company often has scheduling strategies that ensure that the company does not have arising delays in the scheduling of its products. Moreover, the company has a good strategy that ensures that the supply department’s analysis the market demand to ensure that all the products reach the consumers at all times.

SUPPLY, DEMAND, AND LOGISTICS

Coca-Cola Company has an efficient supply chain management that helps in overseeing supply in the company’s products.

The company partners with different suppliers, distributors and the marketing department to ensure that products are produced in due time. This increases the efficiency of the company in marketing of its new products. As a matter of fact, the company has diverse networks that help to improve its functioning.

Legal IndicatorsThe marketing department points out that

there are some regulations that have affected Coca Cola Company.

Many jurisdictions have set restrictive policies in the company that has made it difficult to perform business.

Some other principal areas that have been subject to government policies include antirust, health, environment and labor.

Financial IndicatorThe management of the Company plans to

have increased revenue of 7 billion US dollars from the financial year 2013 to 2015.

Coca Cola has decided to focus on costs so as to have an increase of the revenues.

Some of these strategies include timely production of all products so as to reduce inefficiencies in the supply chain.

Demand ElasticityInnovation of new products by the company

led to an increase in the price of its commodities overtime.

The company therefore becomes a monopoly for a short period of time, since lack of close substitutes for its commodities is a barrier to entry in the market.

Monopoly power therefore led to increase in price of commodities.

Pricing StrategiesThe company employs different pricing

strategies to enhance its performance.Factors that affect demand and supply are,

however, the main causes for fluctuation of prices.

The demand elasticity of the company’s products is therefore inelastic.

Competitive Strategies Coca cola has adopted several competitive

strategies as a marketing strategy.Innovation of new product is another way in

which the company the company makes its decision on prices and quantity.

Lack of close substitutes makes demand less sensitive to changes in price

Product DecisionsThe Coca-Cola Company uses various ways to

make pricing and production decisions. When the demand of the company’s products

is high, the company increases it prices.Increased production and prices increases

the company’s several revenue.

ConclusionIn summation, the supply chain management used

by the Coca-Cola Company has helped it to achieve its number one global status in soft drink manufacturing and distribution.

Since the companies success is based on innovation model, the supply chain department researches for the market needs and develops products that satisfy consumer needs.

Generally, Coca-Cola’s supply chain department is weak since it does not provide new ways of cost reduction to ensure the companies increase its revenue. The supply chain department should provide new strategies aimed at reducing cost of purchases such as ingredients hence contribute in minimization of input costs.

References DuBrin, A. J. (2009). Essentials of

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Kew, J., & Stredwick, J. (2005). Business environment: Managing in a strategic context. London: Chartered Inst. of Personnel and Development.

Kleindl, B. (2007). International marketing. Mason, Ohio: Thomson Higher Education.