Week 3 Strategic Management and Strategic Competitiveness Assignment

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Strayer University

BUS499 Business Administration Capstone

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Date

Introduction

Strategic management has been given increased attention in present-day organizations. The current academic paper will explore the Coca-Cola Company as a public corporation in the beverage industry with a focus on the its strategic management and competitiveness. Attention will be given to how globalization has affected changes in the Coca-Cola company. The paper will shift focus on whether the company can achieve above-average returns by application of the resource-based model as well as the industrial organization model. Conscious of the role of the mission and vision of an organization, the essay will identify how the mission and vision statements of the Coca-Cola company affect the overall success of the organization. More importantly, the essay explores how various stakeholders affect the operations of the Coca-Cola organization as a whole.

Globalization

The Saylor Foundation (n.d) has indicated that Coca-Cola moved to globalize in the 1900s, hundred years after its formation. The move to globalization started with the formation of plants in satellite branches, which has spread to more regions and positively affected Coca-Cola immensely. As per its website, Coca-Cola has indicated that it now operates in 200 countries around the globe (The Coca-Cola Company,2021). This indicates the capability of Coca-Cola to expand and adapt to diverse areas of the globe. Due to its expanded and broad presence globally, the entity has diversified its revenue streams by rolling out new products in the beverage industry. Globalization has gained Coca-Cola a key place in the global market, positioning the entity as a key player in the beverage industry. As a globally recognized multinational, Coca-Cola is not short of competition, where several local entities and other international rivals have been up in arms with Coca-Cola to grab a part of the market. Further, economic times like fluctuating exchange rates and other conditions have continued to impact the profitability of Coca-Cola.

Technology

Advancements in technology have greatly shaped the strategies and operations of the Coca-Cola Company. Among other present-day aspects of technology, it has embraced digital advertising to increase interaction in the online world and, more importantly, build brand presence, customer service, and loyalty among its customers. Coca-Cola has adopted technology in its bottling and packaging, increasing efficiency and reducing costs associated with supply and other logistics of the distribution channel. These aspects have reduced costs and improved the sustainability of the Coca-Cola company. More importantly, adopting data analytics has perhaps been one of the most monumental technological adoptions by the Coca-Cola company. Such is key in understanding the needs and preferences of the customer and hence rolling out products as such needs and bringing on personalized advertisements. According to Group T. T. (2019), Coca-Cola has since 2015 been using a new data strategy that is informed by analytics and entails a digital-led loyalty program where they collect data from customers who purchase, and they then bring on personalized marketing or advertisements.

Industrial Organization Model

Michael (2020) has indicated that the industrial organization model assumes the external environment as mounting pressure and constraints on the organization, thereby greatly impacting the strategies that would lead to above-average returns. In the case of Coca-Cola, it has to position itself strategically in the beverage industry to take advantage of some industry-specific opportunities, such as the capability of delivering standard products. Another is continuity in its market segmentation and differentiating, where it can offer products like they do different products customized to the needs of particular customers, among them diet coke and Coca-Cola Zero, among others. This will help to not only maintain its market share but also new customers come in. By investing wisely in branding and advertising, it will help improve its reputation in the market and improve or reinforce the emotional connection with customers. By utilizing its diverse network and global presence and expanding globally, it can tap into new regions and countries, growing consumer demand and driving up sales in the newly found markets. This will increase its revenue and profitability.

Resource-Based Model

According to Barney et al. (2021), the resource-based theory is a model that presumes that ‘‘firms are bundles of resources and capabilities’’ and that a firm is a strategic entity -structure existing for creating and allocation of economic value. That said, Coca-Cola has unique resources and capabilities that contribute to its greater success. The global reputation, recognition, and trade secret are very valuable to the entity’s success. It is consistently and rapidly innovating in terms of developing its products and even in other sustainability practices in which it is engaged, all of which are essential for the long-term success of the entity. The brand equity will allow it to command premium pricing and, in that way, outperform other brands in the market. Furthermore, its market innovativeness, strong distribution network, and sustainability will enable it to achieve above-average returns. This will be reinforced by the adoption of the opportunities within the beverage industry for it to maintain its market leadership.

Vision

Michael (2020) argues that a vision is an overall picture of an organization or what it wants to achieve, whereas the vision statement is the ideal description of the organization as it intends to be in the future. The vision statement of Coca-Cola is ‘‘Our vision is to craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in people’s lives, communities, and our planet.’’ This vision, as articulated by Coca-Cola, has key elements that propel the company in its strategic decisions toward success and boost its performance. The vision is customer-centric, which emphasizes the people allowed to focus on changes in the market. The vision articulates a commitment to stability, social impact and shared value, sustainability and profitability integration, employee engagement, and culture. These vision elements allow the organization to drive innovation, creativity, productivity competitiveness, and improved performance.

Mission

On the other hand, the mission is founded on the vision and stipulates the business in which the organization will compete and the customer base it intends to serve. Michael(2020) has amplified that the mission is more concrete than the vision. The mission statement of Coca-Cola is ‘‘To refresh the world in mind, body, and spirit, to inspire moments of optimism and happiness through our brands and actions, and to create value and make a difference.” As captured in the mission statement, Coca-Cola entails consumer connection and brand loyalty, inspirational and emotional bonds, corporate social responsibility, sustainable business practices, employee engagement, and organizational culture, all of which drive it to success. A strong mission statement is a guiding force in making the right strategy decision for its actions and overall success in the long run.

Stakeholders

Every business has different stakeholders who are key in the business and, to a great extent, affect the performance of the business. Hristov & Appolloni (2022) argues that stakeholder engagement does affect the performance of the organization, more importantly, the decision-making. In the same case, the stakeholders of Coca-Cola have in many ways impacted the growth and success of the organization. First, consumers are the key stakeholders in the Coca-Cola company, and their purchases have continued to up the revenue and the profitability of the organization. As for shareholders, the consistent profitability of Coca-Cola has continued to attract more investors hence allowing for enough capital for the organization to support growth and expansion. Employees have also been instrumental in the growth of Coca-Cola through a procession of their expertise, skills, creativity, and innovativeness. Others are the suppliers and partners who have kept a good network in the organization, constantly taking their part. Governments across the areas where Coca-Cola operates have been affected in differing ways. Lastly, it has been affected by environmental and social advocates allowing them to embrace environmentally friendly practices and community initiatives that have boosted its reputation and brand image.

Barney, J. B., Ketchen Jr, D. J., & Wright, M. (2021). Resource-based theory and the value creation framework. Journal of Management, 47(7), 1936-1955.

Group, T. T. (2019, July 12). How Companies Are Using Their Internal Big Data Analytics. Treehouse Tech Group. https://treehousetechgroup.com/how-companies-are-using-their-internal-big-data-analytics/

Hristov, I., & Appolloni, A. (2022). Stakeholders’ engagement in the business strategy as a key driver to increase companies’ performance: Evidence from managerial and stakeholders’ practices. Business Strategy and the Environment, 31(4), 1488-1503.

Michael A. Hitt.( 2020). Strategic Management: Concepts and Cases: Competitiveness and Globalization. 13th ed. Cengage Learning.

The Coca-Cola Company. (2021). ABOUT THE COCA-COLA COMPANY. The Coca-Cola Company.
https://investors.coca-colacompany.com/about

The Saylor Foundation(n.d) Globalization and the Coca-Cola Company accessed from
https://resources.saylor.org/wwwresources/archived/site/wp-content/uploads/2013/02/BUS208-2.5.6-Globalization-and-The-Coca-Cola-Company-FINAL.pdf

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