Using Strategic Management with Information Systems Essay

The Coca-Cola Company is the universes largest drink company, reviewing consumers with more than 500 twinkle and still trade names. Led by Coca-Cola® , the universes most valuable trade name, the Companys portfolio features 14 billion dollar trade names including Diet Coke® , Fanta® , Sprite® , Coca-Cola Zero® , vitaminwater® , Powerade® , Minute Maid® , Simply® and Georgia® .

Globally, Coca-Cola Company are the No. 1 supplier of scintillating drinks, juices and juice drinks and ready-to-drink teas and javas. ( The Coca Cola Company, 2011 )Through the universe ‘s largest drink distribution system, consumers in more than 200 states enjoy the Company ‘s drinks at a rate of 1.7 billion helpings a twenty-four hours.

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With an digesting committedness to constructing sustainable communities, this Company is focused on enterprises that cut down our environmental footmark, support active, healthy life, make a safe, inclusive work environment for their associates, and heighten the economic development of the communities where they operate. ( The Coca Cola Company, 2011 )

Fast Facts:

• Established: 1886• Ranking: The company owns 4 of the universe ‘s top 5 nonalcoholic scintillating drink trade names: Coca-Cola, Diet Coke, Sprite and Fanta• Company Associates: 139,600 worldwide ( as of December 31, 2010 ) .• Operational Reach: 200+ states• Consumer Servings ( per twenty-four hours ) : 1.7 billion• Beverage Assortment: The company offers more than 3,500 merchandises including diet and regular twinkle drinks, and still drinks such as 100 per centum juices, juice drinks, Waterss, athleticss and energy drinks, teas and javas, and milk- and soy-baseddrinks.• New York Stock Exchange Ticker Symbol: KO ( The Coca Cola Company, 2011 )Coca-Cola Mission:• To review the universe.

..• To animate minutes of optimism.

..• To make value and do a difference. ( The Coca Cola Company, 2011a )

Market Share:

( Trefis, no day of the month )The planetary soft drinks market is dominated by 3 family names: Coca-Cola, PepsiCo and Cadbury-Schweppes. Coca-Cola claims 47 % of the planetary market, compared with 21 % for PepsiCo and 8 % for Cadbury Schweppes. Other major participants include Cott and AmBev in Latin America This is illustrated in table 1 below.

( Vrontis and Sharp, 2003 )( The Official Board, 2011 )B ) Produce a literature reappraisal of a figure of identified research beginnings for your assignment. Although your chosen company may do utile information available, it is necessary to besides include non-company beginnings to guarantee a balanced, nonsubjective study. ( At least 5 separate beginnings must be included )

Literature Review


In the undermentioned short literature reappraisal, eight documents are traveling to be analysed.

The chief subject is the transnational elephantine Cola-Cola Corporation, the universe ‘s largest drink company functioning more than 200 states at a monolithic ingestion rate of about two billion functioning per twenty-four hours. Several different facets are traveling to be tacked from human resource methodological analysiss employed, to selling challenges in peculiar states, to branding schemes and treatment on the strategic placement in the planetary selling universe. The documents used are all taken from diaries besides runing in their involvement such as ‘The Marketing Review ‘ , ‘Thunderbird International Business Review ‘ and the ‘Corporate Communicationss: An International Journal ‘ . The undermentioned literature reappraisal is by no means the concluding 1 which will be used as more documents are invariably being found, read and analysed. The eventual literature reappraisal will certainly differ from the following one, and the documents seen here could organize portion of the eventual literature reappraisal or could be moved to the bibliography subdivision.

Literature Review

Coca Cola is presently the largest drink company in the universe holding the widest spread of consumers, over 200 states with about two billion helpings per twenty-four hours.

This immense web incorporates about one hundred and 40 1000 company associates to administer this immense sum of drink. It is of import to observe that we are non speaking about one peculiar drink, for illustration Coca Cola or Diet Coca Cola but a whole scope of drinks. In fact the Coca Cola Company has developed bought and conglomerated more than three thousand five 100 different drinks and has successfully or otherwise marketed and positioned these drinks in the planetary market. ( The Coca Cola Company, 2011a )Having such a hugh portfolio of merchandises and runing such a different spectrum of clients, civilizations and head sets needs a really specific and energetic selling attack both as a planetary selling scheme, contracting down to a more focussed cultural attack to specific state peculiar selling schemes. A scheme that works in one state could be irrelevant to another.

The first paper to be discussed is one which was published in 2005 in the ‘Thunderbird International Business Review ‘ called ‘Coca Cola ‘s Selling Challenges in Brazil: The Tubainas War ‘ . In this paper, the writer discusses the selling challenges of the Coca Cola company as it combats its rivals, both its Nemesis Pepsi but besides 100s of local trade names ( called tubainas ) , some which are supported by the authorities through specific revenue enhancement inducements, therefore efficaciously set uping the monetary value. Brazil is clearly an of import strategic state since it corresponds to Coca Cola 3rd largest operation while holding a significantly low ingestion rate of merely 144 bottles per twenty-four hours when compared with the bench grade of the US with 462 bottles per twelvemonth. To seek and turn in the emergent market, Coca Cola employed many different selling schemes, from take downing the monetary value of its merchandises in 1999 ( from R $ 1.80 to R $ 1.

25 ) to spread out the figure of trade names in the market. They besides expanded on the peculiar type of drink that was more in line with the gustatory sensation of the Brazilian population. In fact focal point was given to Kuat, a peculiar drink flavoured with Guarana, a Brazilian popular Amazonian fruit. In fact the Brazilian subordinate planted 200 hectares of this fruit to seek and win back the Brazilian market. Finally the ‘winning scheme ‘ was a mix of monetary value placement, altering the bottling engineering ( from plastic traveling back to glass ) .

To judge the effectivity of the scheme that Coca Cola employed in Brazil, it is relevant to see the current ingestion of the drinks under the Coca Cola umbrella. Harmonizing to Coca Cola ‘s ain figures, last twelvemonth ‘s ingestion for Brazil was 229 per capita, an addition from the 144 of 2005. This amounts to about 60 % growing in five old ages, a mammothic growing in such a little clip period. Clearly more work could be done to make the ingestion of other high consumers that hit the 675 per capita. It is interesting to observe that in Malta, the Coca Cola ingestion is the 2nd highest in the universe with a reeling 606 bottles per capita! ( The Coca Cola Company ( 2011 ) degree Celsius )Continuing on the selling facet but now traveling over to the European side of the Earth, more specifically to Spain, one can appreciate the different selling techniques employed to come in into the Spanish market.

In the paper ‘Brand communities on the cyberspace – A Case Study of Coca-Cola ‘s Spanish practical community ‘ , the writers Maria Sicilia and Mariola Palazon discussed the ‘technological ‘ attack the Coca Cola took to perforate this market. The advanced attack was the usage of practical communities as an alternate scheme. The paper first trades with what are practical communities and how they function. The paper quotes from documents of Cova and Pace ( 2006 ) and Mathwich ( 2006 ) .The informations that the writers collected was from the period September 2006 to July 2007. The paper is offers a really interesting expounding of this practical world, societal networking construct when seeing the growing from 2000 to 2010, the Spanish ingestion grow from 251 to 284, a growing of 13 % whereby the overall European market turn by 20 % and the Worldwide market grow by 33 % ! ( The Coca Cola Company ( 2001 ) B )The 3rd paper discussed in this literature reappraisal trades with the strategic placement of Coca Cola in their Global Selling Operation. This means that now we are traveling to whizz out from the single state and travel to the less specific.

The paper written in 2003 by Demetris Vrontis and Iain Sharp is titled ‘The Strategic Positioning of Coca-Cola in their Global Selling Operation ‘ and was published in the Marketing Review diary. This paper examines how Coca-Colas has strategically positioned itself within the universe ‘s softdrink selling. The paper focussing at the theoretical accounts that Coca Cola has utilized for such a ‘global return over ‘ . This paper explains that the Coca-Cola Company has adopted both a Differentiation and a Cost Leadership Strategy. The usage of a distinction scheme is where the house attempts to be diverse from its rivals by adding something to its merchandise that will supply a alone value to its clients. There are besides assorted ways a house can distinguish depending on the industry it is in, nevertheless the costs of this distinction policy must be lower than the extra pricing the house can obtain.Differentiation for Coca-Cola is achieved through perceived superior quality merchandise, which surpasses their close challengers, and high trade name image and acknowledgment.

The company has besides used their publicity and packaging as a agency of farther distinction, for illustration, the Coca-Cola bottle, which has become an internationally recognized symbol. ( Vrontis and Sharp, 2003 ) These are fundamentally the two overall methods that Coca Cola employees for its strategic direction and way. With these steps, Coca Cola managed to diverse from it rivals and make a merchandise which provided a alone value to its client. The merchandises generated were good incorporated into a comprehensive merchandise portfolio which enabled universe incursion and the ability to keep on to this immense market portion.

It is clear that to pull off a corporation this large, involves challenges in Human Resource direction which are non to be disregarded. Specifically in this line of literature, the following paper will discourse facets of Human Resource direction specifically with regard to mentoring and coaching. The paper is called ‘Case Survey: Mentoring and Coaching as portion of a human resource development scheme: an illustration at Coca-Cola Foods ‘ .This paper, written by David J Veale and Jeffrey M Wachtel, published in the Mangement Development Review in 1996 high spots the three attacks that Coca Cola took to this facet of preparation. These three attacks include the demand to beef up the nexus between their concern scheme and development focal point, the demand to affect leading of the administration in all facets of development and to utilize of a assortment of development tools to fit personal and organizational demands better.

The three attacks were employed to make the first of the companies vision:’People: Be a great topographic point to work where people are inspired to be the best they can be ‘ . ( The Coca Cola Company,2011d )This paper explains that Coca Cola manages to utilize both coaching and mentoring methods at the same time for the benefit of its employees. Coaching is a relationship activity designed to increase public presentation of the peculiar company. Coaching is a more informal method and occurs between the employee and his or her employer.

Mentoring is more formal. It is based on a one-to-one relationship with person who usually is non in the same section or country. A wise man can or usually uses all of the coaching types, but the intent of mentoring is much broader. Coca Cola believes that both mentoring and training have their ain of import function in the HR development attempt. Coca Cola ascertains that people ( staff ) development is a chief key to guarantee constructing competitory advantage and to make every bit high a executing administration as possible.

( Vaele and Wachtel, 1996 )The concluding paper that will be discussed in this short literature reappraisal leaves the old surveies and focal points on the manner Coca Cola ‘manages ‘ crisis. he Asiatic fiscal crisis was a period of fiscal crisis that gripped much of Asia get downing in July 1997, and raised frights of a world-wide economic meltdown due to fiscal contagious disease.In 1997, the fiscal result of the Asiatic Crisis began to be felt in most Asiatic states, but clearly non felt every bit in all. States such as Indonesia, South Korea, Thailand and Malaysia were really severely damaged in this crisis.

On the other manus other states like Singapore, Vietnam, the Philippines, Taiwan, Burma and China were non crushed even though they felt the fiscal hit of the crisis. ( Pempel, 1999 )The Coca Cola mill in Indonesia saw a dip in their gross revenues of 30 % merely after this Asiatic crisis but it managed to last by using really specific actions which might hold been seen as unrealistic or unreasonable at that point in clip. In their paper ‘Strategic Lessons from the Asiatic Crisis ‘ , Singh and Yip explain the chief actions taken by Coca Cola Indonesia. The companies first response was a monetary value addition ( to increase profitableness ) , so a alteration in the mix of packaging ( from high cost aluminum to a lower cost glass ) , to cut down fabrication cost and increase farther more the profitableness.

Finally, holding assured itself of a certain sum of hard currency ( following the above actions ) , Coca Cola Indonesia focused on plus purchasing. In fact Coca Cola was one of the really first companies to purchase assets instantly after the Asiatic Crisis. Coca Cola raised its investing in its Thai bottling works from 5 per cent to 49 per cent, geting its South Korean and Philippines bottling workss and explanded operations in India, Vietnam and other states. ( Singh and Yip, 2000 ) Basically Coca Cola show its ability of bend around from crisis to possible growing. This was afterall in line with the mission and vision of this massively hugh international colossal which once more managed to happen solutions in inauspicious state of affairss which could easy hold damaged or even broke down the Asiatic side of this company.


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