Coca-Cola Company: Strategic Management Process
The paper at hand is devoted to the analysis of the process of strategic management basing on the Coca-Cola case study. In the framework of the relevant study, such aspects as a mission statement, a vision statement and values were examined.
The principle aim of this analysis resided in identifying the key advantages and disadvantages of the company’s strategic concept. A particular focus was put on the aspect of the strategy aligning with the interests of the company’s stakeholders. The study was carried out basing on the data that the company offers on its official website.
The analysis has shown that the key flaw in the company’s strategic planning is the lack of clarity in its values positioning. In addition, Coca-Cola seems to have a poor mission statement that does not reflect the core company values and purposes. As a result, it is suggested that the strategic concept is improved in order to ensure that the company’s message is communicated to the targeted audience in an efficient manner.
A company’s mission and vision serve to be an effective tool to communicate their strategy to its stakeholders. In addition , they are an integral part of strategic planning as they help to work out a detailed and well-organized outline for both short-term and long-term targets. Moreover, they are a certain kind of a company’s image reflection so that the way they are posed has a critical impact on the audience’s perception of the brand.
The paper at hand is aimed at analyzing the core components of Coca-Cola’s strategic concept and their interconnection with the stakeholder’s interests. A particular focus is put on identifying the key drawbacks in the current strategic concept and suggesting the ways of their elimination.
Company’s Mission Statement and Analysis
Coca-Cola’s official web page offers the following mission statement: “To refresh the world…To inspire moments of optimism and happiness…To create value and make a difference…” (The Coca-Cola Company, 2016). Generally speaking, Coca-Cola’s mission statement expresses its core ideology that resides in bringing in a positive change. From this perspective, the company’s mission statement is most general – it does not provide a direct link to the stakeholders or the product aspect.
In the meantime, it has a hint at the company’s ambition to maintain its competitive advantage in the relevant market – “make a difference” might be interpreted as the company’s determination to offer better products than these from the rivals.
It is certainly assumed that some sort of consistent mission affirmation should comprise typically the core values, typically the core purpose and even the visionary aims of the organization. In the meanwhile, it is allowed to be universal so of which it can in shape the demands with the changing environment (QuickMBA, 2010). From this kind of perspective, Coca-Cola’s quest statement is brief however flexible. Throughout other words, the corporation will not include to reshape that in response to be able to the challenges of which might show on it is way.
However, it could seem to be that the firm has mixed it is mission statement together with the vision statement. The latest statement does certainly not reveal the explanation for being; alternatively, it offers many framework for typically the organization’s future. Relating to the experts’ opinion, the eye-sight statement should contain the prospects of which the company finds, whereas the quest statement is predicted to explain the current concept of typically the company (Heathfield, 2015).
Company’s Vision and Examination
Typically the company’s vision is definitely based on typically the so-called “focused decisions”. Hence, the standard target is durability and consistent expansion, though the eye-sight also addresses half a dozen dimensions: people, stock portfolio, partners, planet, earnings, and productivity. For each and every of the enrolled aspects, Coca-Cola’s eye-sight gives a relatively certain framework. Thus, intended for instance, the corporation is established to make some sort of “highly effective, good and fast-moving organization” regarding productivity and even so on (The Coca-Cola Company, 2016).
Coca-Cola’s vision has equally advantages and downsides. On the one particular hand, the eye-sight is posed throughout such an approach that it can easily be simply converted into actions. Lots of experts believe of which the practical area with the vision is definitely of high value – employees are meant to receive some sort of particular guideline to be able to implement the qualified ideology. It is definitely also assumed a good vision ought not to be too long and so that anybody can effortlessly memorize its important slogans and keep to them in the or her task (Heathfield, 2015). With this standpoint, Coca-Cola’s eye-sight is rather valuable – it is definitely brief and special.
In the other side, there is the opinion that modern day vision is likely to be imaginative and unconventional (McNamara, n. d. ). Otherwise speaking, some sort of vision is not an even more a mere plan of action but a highly effective motivation tool. By this perspective, typically the company’s vision is definitely rather ordinary ~ it is less likely that this can stimulate Coca-Cola’s employees typically the way its at the moment proposed.
Company’s Values and even Analysis
Coca-Cola remarks typically the seven core principles that it stocks: leadership, collaboration, honesty, accountability, passion, variety, and quality. For every of the ideals the organization offers the brief interpretation to make it more illegible. Hence, with regard to example, they clarify that they realize leadership as “the courage to shape a better future” and so on (The Pepsi Company, 2016). In this point, the way that they put their own values makes 1 think that the organization has mixed the values as well as the eyesight. Hence, their prices offer short plus catchy slogans that look more like motivators and are uninformative from the useful perspective. Thus, with regard to instance, the honesty value is accompanied by a short explanation “be real” that looks like an encouraging attractiveness, though it gives simply no idea of what is actually meant.
In inclusion, the core ideals of the company are usually normally not very several as they are usually designed to comprise only the general factors and avoid specificity. Some experts think that the most logical value limit will be five and beneath (QuickMBA, 2010). Pepsi, in its turn, provides seven core ideals, a number of them, such because “passion, ” with regard to instance, look instead vague.
Nevertheless, the ideals have the advantages which should not become overlooked. Hence, with regard to example, the focused values are instead long-lasting. In some other words, the organization may rely on them in a circumstances plus notwithstanding the products it sells. Let’s say that Coca-Cola chooses to change the profile, it may still adopt the values described above.
Positioning of Company’s Mission, Vision, Values, plus Goals with Stakeholders’ Passions
On the face of it, the organization looks highly concerned about engaging the stakeholders in the strategy planning. Therefore, they claim that the stakeholders’ passions have a varied effect on the corporate decision making ( Stakeholder Wedding , 2015). The more profound evaluation yet shows that not every the parts of the tactical concept are in-line with stakeholders’ passions directly.
The mission declaration, for instance, details some communities that are promised to receive a “refreshed world. ” In the meantime, the addressees from the “optimism and happiness” are not really clear – these people might be the product’s consumers while well as the employees or each.
Through this perspective, the company’s value declaration is more exact. It addresses a minimum of four groups associated with stakeholders: suppliers, workers, partners, and areas. Meanwhile, it seems paradoxical that this ideals have no direct link to the customers. Thus, presently there are some connotations for satisfying consumers’ needs and needs, although one will certainly have to go through between the ranges to indicate the attractiveness to consumers.
The company’s values seem to be in-line with stakeholders’ passions best of just about all. Thus, they protect all of the critical organizations of stakeholders. Therefore, for instance, the shoppers are ensured which they get a high-quality item, the employees are usually welcomed to create effective leaders, the communities are guaranteed to get the “better future” plus the partners are usually encouraged to “leverage collective genius” (The Coca-Cola Company, 2016).
The particular only disadvantage that will might be indicated out will be the vagueness of some effects for the stakeholders’ interests. In additional words, it is not necessarily constantly clear what sort of stakeholders’ group is tackled by this or even that statement. Therefore, for example, any time the company promises that it is usually decided on “be genuine, ” it is usually problematic to distinguish the particular group that is usually welcomed to reveal this value since well as in order to think of the particular action that could help to do this concentrate on.
The key downside of the proper concept that is usually recommended to get eradicated is the baffled notions of objective and vision. Hence, instead of describing the reason why to end up being in the objective statement, the business targets the future-oriented aspiration. In add-on, according to the particular basics of marketing and advertising, a mission assertion is supposed in order to be longer that will a vision one particular; in fact, it will include an precise description of the particular company’s strategic principle ( Marketing and advertising Principles , 2012). In Coca-Cola’s situation, the mission assertion is short, in addition to it evidently is lacking in some critical information about the company ideology.
The company’s perspective is quite efficient coming from the practical perspective. In other phrases, you can use it as a new precise guideline regarding the necessary steps. It can continue to be recommended that will the company re-forms the vision help to make it soun on the contrary, are highly inspiring and excessively vague. Otherwise stated, the company can try to put them more concisely so that the audience has a clear idea of what it is welcomed to share.
The analysis of the strategic concept of the Coca-Cola Company has shown that the company offers catchy slogans that are likely to attract the consumers. In addition, its mission, vision, and values are universal. Otherwise stated, Coca-Cola can rely on them regardless of the changes in the environment. Furthermore, all the strategic components are, to a larger or smaller extent, aligned with particular groups of the stakeholders.
Nevertheless, Coca-Cola seems to confuse some of the components. Thus, its mission statement sounds more like a vision. Moreover, such critical component as values evidently lacks clarity. Therefore, it is recommended that the strategic concept is slightly reshaped in order to make it more concise and informative.
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McNamara, C. (n. d. ). Basics of Developing Mission, Vision and Values Statements . Web.
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Stakeholder Engagement . (2015). Web.
The Coca-Cola Company. (2016). Mission, Vision & Values . Web.