A Management Problem in Coca Cola Company

Posted: November 28th, 2013





A Management Problem in Coca Cola Company

Company Identification

The Coca-Cola Company is known to be the leading producer, supplier, and marketer of non-alcoholic beverages and syrups worldwide. The company manufactures more than three hundred brands inclusive of water, juice, tea, coffee, and energy and sports drinks. It operates in more than two hundred nations hence being the biggest producer and supplier within the beverage market. Coca-Cola Company produces concentrates that are then sold to licensed Coca-Cola bottlers in the entire world. The bottlers holding exclusive contracts with the company bear the responsibility of producing the finished products in cans and bottles from the concentrate in combination with filtered water and sweeteners. In the production process, the company has also introduced new cool drinks under the brand name coke.

Issues leading to diversity of employee backgrounds

The Coca-Cola Company presently evidences an insubstantial strategic management team that has infused a large problem within the organization. The research will also outline and address the challenges of global strategic management processes within Coca-Cola Company. Strategic management is a principle requirement in any organization since it influences the general process of internationazation for any company. Strategic management is the process of identifying a company’s objectives, establishing policies and plans in order to achieve the set objectives, goals, and resource allocation in order to implement the plans. Strategic management is noted to be the greatest level of managerial practices that is guided by the company’s Chief Executive Officer and the executive officials.  Thus, it is responsible for providing the overall direction in the entire organization.

Strategic management is a big issue to the Coca-Cola Company because due to its nature as an international company. Therefore, as a result, the management plans formulated by the executive officials have to meet the requirements of a large population internationally. The process of developing international strategic management is a hard task thus, the senior manager has a great responsibility in achieving the set objectives. Strategic management in Coca-Cola Company is a big problem especially when it comes to setting goals, towards enabling the company to articulate its vision, identify its targeted needs and both the short-term and long-term objectives. This is hard because it is deals with a large number of companies in different countries hence mandating a focused and skillful management in order to achieve such diverse goals.

The strategic management problem in Coca-Cola is noted particularly during the process organizational analysis. This process requires company assessments within both the external and internal environments in order to identify the strengths and weaknesses facing the company and also the available opportunities and threats that the company may experience within future periods. As the process covers diverse regions, the analysis becomes both labor and cost intensive and with the nature of the researches, the required information is hard to acquire. In order to determine a company’s strategy, the senior managers are required to establish alternatives priorities and create or make well thought of decisions spanning all the investment regions.

The Coca-Cola Company should therefore aim at eliminating the identified strategic management issues in order to acquire an understanding of complex interactions in various and different areas of management. Some of the issues occurring in the strategic management according to research include language, advertising, politics and cultural diversity amongst others. Strategic management is necessary in Coca-Cola Company because it helps in foreseeing the future and tracking any changes concerning the expectations of the customer and proper decision-making. By dealing with such issues, the company is assured of achieving its set goals and objectives. In addition, scholars believe that the success of any company or organization depends on the skills evidenced by its managers. With enhanced competition within commercial activities, many companies worldwide are mandated to a way of survival in terms of creating a competitive edge.

Research Questions

  1. What are some of the challenges facing the Coca-Cola Company in terms of global strategic management?
  2. What is meant by the international strategic management problem?
  3. What are some of the management measures that can be implemented in order to manage the problem, in particular global strategic management issue within Coca-Cola Company?

Research Method

The research will examine secondary data that relates to strategic management issues in international markets. Therefore, information gathering will range from the available Coca-Cola reports, printed annually for purposes of appraisals conducted by company stakeholders. This information will be useful in carrying out an analysis of the economic review and statistical strategic condition of the Coca-Cola Company. Therefore, the use of internet sources will facilitate the success of the research since the information provided will be supportive in aiding with the retrieval of the necessary information required in accomplishing a comprehensive research.

The main survey to be incorporated will include the analysis of primary data taken from research conducted into markets that are operated on an international basis. This includes an analysis of data from reports generated by companies that have financial stakes into markets extending from domestic markets. The survey to be used will also incorporate the stakeholders’ take on financial matters, both positive and negative, that affect the company and its output. These will be incorporated to present the research findings and analysis that clarify on the exact standing of the organization. The survey question will be related to the research questions especially in the challenges facing the company as concerns its strategic management in an international aspect. The management should also be questioned on its global strategic stand and the measures that should be taken to deal with any inconsistencies it has to deal with.

Research Findings and Analysis

From the sources, the results revealed various issues that cause the problem of strategic management within the Coca-Cola Company. Cultural diversity due to racial differences, religion, language, social background amongst others interferes greatly with the process of strategic management within the company. The Coca-Cola Company was forced to pay some amount of money in order to settle the action of racial discrimination lawsuits noted in various instances within the organization (Meeker 45). According to Byars (2011), employees from minority groups within the company have noted cases of mistreatment and they are not represented in any of the top management positions. Following these instances of racial discrimination at the Coca-Cola Company, the organization could not achieve its goals and objectives fully due to the weakened strategic management. In addition, the research revealed that some of external issues also enhanced the strategic management issue within a company. Examples include actions of competitors, political unrest near company sites, and changes in commercial regulations, rules and laws.

The graph below represents some of the most popular beverages produced by Coca-Cola Company as research revealed.


Managing the Issue

A company’s effectiveness is a significant measure of strategy effectiveness in handling challenges. Therefore, choosing an appropriate means for assessing a company’s effectiveness presents a challenging problem for the managers. The Coca-Cola Company is the largest soft drink producer and with various branches in different nations worldwide, it becomes hard to merge the different programs into a collective strategy. Note that, each nation has its own criteria of managing strategic issues depending on its performance and the spatial needs arising from the various locations. Each company’s strategic management issues require specific resource allocation and therefore assuming dissimilar cooperative, competitive and resource distribution systems. Unless such issues are incorporated for a single strategy, the intricacy noted in overall management will continue being noted as long as the company continues advancing in other regions. However, since it is impossible to have a single strategy for all the outlets, then the same should be split in regional terms.

Applying the managerial process model will be helpful in handling the strategic management problems in the Coca-Cola Company. This model will help in assessing the potentiality of the company’s productivity in different managerial processes such as proper planning, decision-making, and proper budgeting in order to achieve superior performances in the future periods. The managerial process model will aid the Coca-Cola Company in encouraging teamwork in overcoming the noted differences in culture, language or race, which are the most principle strategic management issues that interfere with the proper performance of the company. By implementing the managerial process model, effective practices such as meeting the needs of the employees will be enabled, there will be freedom of communication which increases trust and confidence among workers hence facilitating its performance at all times and the model will help in creating a team working spirit , and loyalty between various employees groups. With such measures in place, the Coca-Cola Company is assured of enhancing the strategic management issues hence improved productivity that aligns to consumers’ preferences.

Regarding the company’s internal and external environment, the identified issues have the capacity to cause a large negative impact of the performance of the organization. Therefore, investing in strategic management systems offers a good alternative in terms of routines and processes set aside in perceiving, analyzing, and reacting to issues of diversity management. For instance, through the adaptation process, the Coca-Cola company is able to achieve best alignments in terms of environmental issues, whereas by learning, it illustrates that the company is facilitated by advanced knowledge and understanding. Strategic management systems will also help in decision-making by ignoring irrelevant issues and thus shifting the efforts to significant issues. Pursuing collective workloads will improve the actions of the organization. However, this system will require enough skills and knowledge regarding the handling of strategic issues since due to the intricacy noted within the process.

The external issues should be managed by the use of automated management systems in order to help with tracking, identification of significant public policy issues, and the execution of problem handling approaches before they develop into legislative actions. General issues of strategic management can also be managed through the automated monitoring processes for both external and internal environments to ensure that they align well with the company’s capabilities and resources in handling possible threats and opportunities effectively. The Coca-Cola Company should include proper planning channels that will link various managers for collective decision-making. For instance, given the long-term need for better transportation of given company products, the need for proper planning is very important and necessary because it will enable the company to achieve expansionary needs. The planning process should include a determination of future transport facilities and an appropriate allocation of financial resources. With the preceding propositions, strategic management issues of Coca-Cola Company will be addressed only if proper implementation of the mentioned measures is ensured; lack of this will only lead to the progression of the issue.



Works Cited

Byars, Lloyd. Strategic management: planning and implementation concepts and cases. New York, NY: Harper and Row, 2010.

Meeker, Mary. The Coca-Cola Company: an international perspective. California: Salomon Brothers Inc., 2011.

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