ATENEO DE DAVAO UNIVERSITY School of Business and Governance The Coca-Cola Company: Coke Gets Back to Business Submitted to: Mr. Godofredo Eding Submitted by: Ruplo, Divine Joy June 18, 2010 I. Background Throughout the world, Coca- Cola has established its name as one of the biggest selling soft drinks and leading distributor of beverages. However, there prominence has also declined due to unexpected events. These changes were also brought by new heads of the company.
Coke’s former CEO, Roberto Goizueta had considerably increased the market value of the company but declined when he was replaced. Since another chief operating officer took over in 2000, Coke’s growth in the market was challenged by many investors on how to keep its name in the industry dominating. Considering the existence of its primary competitors, its global domination has primarily been the issue at risk. It was also indisposed to tamper one of its unfortunate introduction of New Coke. Since then many has doubted its capability in returning the valuable name to the public.
II. View Point Coca-cola’s former CEO, Roberto Goizueta told that the company should raise for capital and be able to trade it at a profit. With that mindset, the business would primarily grow by using less capital, investing it and gaining more profit even without accessing the capital. As stated, many studies discovered that the usage of EVA would do better than their middle competitors. On the other hand, Douglas Daft focuses on the company’s increasing growth through close ties to consumers around the world. He stressed about thinking locally and acting locally.
He talks about leading the company not just on its expertise, management systems and capital strategic structures but also on plans to be more sensitive in places where products are distributed. He had admitted that the company was moving in the incorrect path in the late 90’s wherein Coke became over-compacted, slow and insensitive in its distribution. He had also worked out on human resource to make sure all are treated justifiably, no harassment on co-workers or managers and restructured management team to follow his mindset. III. Problem Statement
How should Coke regain its global dominance through strategic plans to increase its market value? IV. Objectives 1. Expand a growth potential of a carbonated soft drink in the market this year. 2. Develop a product of noncarbonated variety to increase profit this year. 3. Improve customer relationships with ingenuity to create development on service channels to market the product in the next six months. 4. Appropriate investments in large prospective markets for greater purchase connections this year. 5. Increase cost-effectiveness and competence.
V. Areas to consider Expanding a specific potential of a carbonated soft drink should be further investigated by the Research and Development Department. Through accelerating the emergence of an old product, this would yield another track of working hand-in-hand with marketing research findings. If necessary, it has to improve the taste or packaging areas that need innovation. Developing a noncarbonated drink would also need thorough research of developing its brand image that would surely hit people’s interests especially on taste.
The power of media could also bring a good start of introducing new products since many are now concerned with their health. The improvement of customer relationship can bring large impact through increasing the sales force that would surely market the product easily. It can be through advertising, promotions, research and relating to public the product’s image through good marketing. By hitting the finance objective appropriately, this would direct towards expansion of affordable packages in certain cities like Beijing and Shanghai to activate connections to the customers.
This would increase market value of company. The creation of products needs to be cost-effective especially in the quality that need disciplined routines for it to continue the good image of the company disregarding the past issues. VI. Alternative Courses of Action The objectives of the company provide a widened knowledge in providing strategies mainly in more consumer satisfaction since it would be tantamount growth of the product and its distribution across the countries.
Additional marketable details about health awareness would help uplift another image of the brand. This should also include taglines that equate more of its consumption to happiness since health is a main issue nowadays. Thinking locally and acting locally as to the mindset of employees can ensure differentiation of the company. Investing on large potential markets increases the value of the product and activates purchase connections. Another alternative course of action is through unique advertising and promotions of product.
The innovation of Coke’s image should be appropriately designed thoroughly to increase its demand on consumers. Also, improving the awareness of strong competition in the industry will serve as benchmark as to current market situation. VII. Conclusion and Recommendation Since ACA 1 would yield positive results as to the strategic implementations to the company, this would merely regain its global dominance throughout the market. Thus, the new strategic initiatives of Coca-cola would be helpful in gaining back its dominance in the market.
Since this are the top priorities in marketing, post-industrial and production of Coke, its distribution to local markets would yield closer connections to the consumers. Thus, this would accelerate Coca-cola’s image at the top again. The expansion and innovation of Coke’s would fuel in achieving its overpowering profitability. References: Cola wars: CocalCola vs. PepsiCo. http://media. wiley. com/product_data/excerpt/16/04717432/0471743216-3. pdf Coca-Cola Chief Douglas Daft Outlines Vision for Growth. http://findarticles. com/p/articles/mi_m0EUY/is_13_6/ai_61556497/