Propose Write detailed feedback and critical analysis that team members can inco
ID: 366960 • Letter: P
Question
Propose Write detailed feedback and critical analysis that team members can incorporate into their drafts. !00 words or more.
Strategic planning and implementation are quite critical to the success of different organizations. They make a firm carry out new businesses which help in reaching different untapped markets. To ensure the success of a proposed new division, it is usually critical to carrying out an environmental analysis which assists in gaining knowledge on the overall organizational situation as well as the various issues that it might face. Coca-Cola Company is an American multinational firm that operates in the beverage industry. It has its headquarters in Atlanta, Georgia. The enterprise also serves as a producer, marketer, and a seller of different non-alcoholic syrups and beverage concentrates. The firm plans on creating a new division which will produce Energy Coke to serve the increasing demands for energized drinks by different consumers. The new division will work best in enhancing the needs of customers for the energized drinks. This paper will provide a SWOTT analysis of the new unit to identify if it will be viable for Coca-Cola Company.
SWOTT Analysis
The SWOTT analysis provides different strengths, weaknesses, opportunities, threats, as well as industry trends of the company in line with this new division. The table below provides the SWOTT concerning different internal and external factors.
SWOTT Analysis Table
Forces and Trends
Internal
External
Trends
Internal
Strengths
Weaknesses
Opportunities
Threats
Trends
Structures
It has a well-developed organizational system
Breakdown in communication at times.
Using modern equipment and structures.
Vandalism in some countries.
Most companies are building customer-focused structures.
Strategy
Coca-Cola has achievable strategies.
Primary focus on sweetened soft drinks.
Focus on profitable strategies.
Conflicting organizational strategies.
Different firms are coming up with new but achievable strategies.
Resources
Numerous resources all around the world.
Wastage of some resources.
Encouraging cheaper acquisition of resources.
A threat of failure of some resources.
Most firms are devising means of saving their internal resources.
Processes and systems
Efficient packaging techniques.
A few weak systems.
Opportunity of reducing various inefficiencies in the system.
Incomplete processes.
Financing of better processes.
Goals
Coca-Cola usually achieves most of its goals.
A few unnecessary goals.
Working on consumer-focused goals.
Breakdown of some goals.
Development of consumer-focused goals.
Strategic capabilities
It has sufficient resources to undertake various activities.
Poor publicity.
Enhanced communication within the organization.
Strategic failure.
Most firms are training employees to carry out strategies effectively.
Innovations
Has a highly-motivated innovations team.
Does not focus much on diversification innovations.
Carrying out development of more energy-content drinks.
Conflicts within development teams.
Coming up new products and services.
Culture
It has an inclusive organizational culture.
Discrimination in some nations.
Opportunity of involving a more inclusive workforce.
Ethical concerns.
Most firms are acquiring more diverse workforces.
Technologies
Has enhanced organizational technology systems.
Failure of some of its technologies.
Protection of organizational technology systems.
Imitation by competitive firms.
New technologies in production.
Leadership
The leaders are supportive.
Unclear communication at times.
Enhancement of clear communication in different departments.
Weak leaders in some nations.
More inclusive leadership.
Intellectual property
Coca-Cola has some production rights.
Online security problems.
Intellectual property laws are being strengthened.
Publicity of intellectual property rights.
Acquisition of exclusive production rights.
External
Strengths
Weaknesses
Opportunities
Threats
Trends
Industry changes
The company usually responds positively to various changes.
Some industry changes inhibit some operations.
There is need for product diversification to prevent effects of industry changes.
Nutritious selections from consumers.
Consumers are currently demanding energy drinks more than the soft drinks.
Global
Coca-Cola operates worldwide.
Lack of proper distribution channels in some nations.
It can venture into untapped nations.
Competition from other global firms.
Most firms are considering globalization to improve in profits.
Legal and Regulatory
The company adheres to most of the production rules and regulations.
Negative publicity.
There is an opportunity to minimize the various lawsuits that might involve the firm.
Water management rules.
Various rules and regulations concerning the manufacture, distribution, and provision of food products are being set in different nations.
Technological
Has well developed organizational architecture.
Constant fights over various technologies in production.
Availability of new production methods.
Change costs of acquisition of new technology.
Most firms are enhancing technological improvements.
Economic
Many people are aware of the Coca-Cola brands.
Fluctuation of foreign currency is a weakness.
Most countries are improving economically.
High cost of ingredients for producing energy drinks.
Consumers are cutting down consumption of sugar-sweetened drinks.
Social
It enjoys high customer loyalty.
Political stability in some nations affect the firm socially.
The division can create a more inclusive CSR measures and values.
Interference by some sets of stakeholders.
Most firms are involving consumers in decision-making processes.
Competitive analysis
Coca-Cola enjoys a large market share.
Traces of pesticides in some drinks have damaged brand image in the past.
Diversification of production.
Indirect competition from firms like Starbucks.
Most firms are considering diversification to improve their competitive edge.
Environmental
Has a history of encouraging recycling as a means of environmental conservation.
Does not take care of water management.
Should engage in environmental conservation educative activities.
Water is becoming limited in different places.
Environmental protection awareness has been the talk of the day over the past.
Innovation
Coca Cola has a highly innovative team.
Failure of some innovative processes.
The firm can come up with more nutritious and healthy products.
Product development and research may be copied by competitors.
Different firms are currently involved in numerous research studies.
Economic, Legal, and Regulatory Forces and Trends
From the analysis, there exist different economic, legal and regulatory forces and trends that might impact the success of this new division of Coca-Cola Company. Firstly, there is a tremendous brand awareness of Coca-Cola products all around the world. The brand awareness of the company will make this new division of energy drinks thrive in the market. Interestingly, most consumers are scaling down their consumption of sugar-sweetened soft beverages around the world and focusing on the consumption of energy drink, (Bigliardi and Galati, 2013). It is an economic force that would likely lead to the success of the new unit of the firm. On the other side, different countries have been setting up various rules that govern the production and distribution of food products with the aim of protecting the health of their citizens. Coca-Cola will have to adhere to these rules. Nonetheless, the firm has still been obeying most of the rules and regulations that govern their production processes.
How well Coca-Cola Adapts to Change
Ideally, Coca-Cola will likely succeed in the development of the new division due to its high level of adaptability to various strategic changes. The firm is multinational and has the needed global connection to introduce the Energy Coke in the market. The company also has sufficient capital to fund the activities of the strategic plan and make it a success. Furthermore, Coca-Cola has a highly committed team of employees who are usually focused on ensuring the success of different moves, (Elmore, 2015). Coca-Cola has been active in the market for quite a long time and has been able to beat the likes of PepsiCo for a large market share. It means that the distribution channel of the firm is highly developed and will adapt to the introduction of the Energy Coke drinks.
Supply Chain of the New Division of Coca-Cola
The supply chain of the new division of the existing company will be the same as that of the parent company. It involves the flow of information and materials which includes orders, forecasts, and various schedule. They usually start from the suppliers who provide the materials to be used by the manufacturers and assemblers consecutively. After being produced or assembled, the division will distribute the drinks to different retailers who would sell them to the final consumers in various parts of the world, (Lambert and Supply Chain Management Institute, 2008).
Primary Internal Organizational Considerations for the Development of a Strategic Plan
The various internal considerations for the achievement of a strategic plan in an organization have been provided in the SWOTT table presented above. Some of the factors include leadership, resources, technologies, goals, strategic capabilities, and culture among others. They are all critical to the strategic processes. For example, leadership is crucial since the leaders usually provide the necessary guidance needed in the strategic operations.
Major Issues and Opportunities the Company faces based on the Analysis.
The company has the opportunity of diversifying its production processes to include energy drinks in its line of products to reach the increasing market for energy drinks, (Kumar et al., 2012). Also, the company can start involving itself in the production of different products that are outside the soft drinks sector. Coca-Cola also has the potential of improving its technological know-how by providing the necessary education to the employees. However, the company faces different challenges like indirect competition from other firms such as Starbucks which provide beverages too. Furthermore, the business also faces various environmental conservation challenges.
Conclusion
This paper provided the SWOTT analysis of Coca-Cola Company that plans to build a new division that will produce Energy Coke. SWOTT analysis is an integral part of identifying the viability of strategic processes of a company. From the review, the company adapts well to changes and would be able to go on with the strategic plan.
Forces and Trends
Internal
External
Trends
Internal
Strengths
Weaknesses
Opportunities
Threats
Trends
Structures
It has a well-developed organizational system
Breakdown in communication at times.
Using modern equipment and structures.
Vandalism in some countries.
Most companies are building customer-focused structures.
Strategy
Coca-Cola has achievable strategies.
Primary focus on sweetened soft drinks.
Focus on profitable strategies.
Conflicting organizational strategies.
Different firms are coming up with new but achievable strategies.
Resources
Numerous resources all around the world.
Wastage of some resources.
Encouraging cheaper acquisition of resources.
A threat of failure of some resources.
Most firms are devising means of saving their internal resources.
Processes and systems
Efficient packaging techniques.
A few weak systems.
Opportunity of reducing various inefficiencies in the system.
Incomplete processes.
Financing of better processes.
Goals
Coca-Cola usually achieves most of its goals.
A few unnecessary goals.
Working on consumer-focused goals.
Breakdown of some goals.
Development of consumer-focused goals.
Strategic capabilities
It has sufficient resources to undertake various activities.
Poor publicity.
Enhanced communication within the organization.
Strategic failure.
Most firms are training employees to carry out strategies effectively.
Innovations
Has a highly-motivated innovations team.
Does not focus much on diversification innovations.
Carrying out development of more energy-content drinks.
Conflicts within development teams.
Coming up new products and services.
Culture
It has an inclusive organizational culture.
Discrimination in some nations.
Opportunity of involving a more inclusive workforce.
Ethical concerns.
Most firms are acquiring more diverse workforces.
Technologies
Has enhanced organizational technology systems.
Failure of some of its technologies.
Protection of organizational technology systems.
Imitation by competitive firms.
New technologies in production.
Leadership
The leaders are supportive.
Unclear communication at times.
Enhancement of clear communication in different departments.
Weak leaders in some nations.
More inclusive leadership.
Intellectual property
Coca-Cola has some production rights.
Online security problems.
Intellectual property laws are being strengthened.
Publicity of intellectual property rights.
Acquisition of exclusive production rights.
External
Strengths
Weaknesses
Opportunities
Threats
Trends
Industry changes
The company usually responds positively to various changes.
Some industry changes inhibit some operations.
There is need for product diversification to prevent effects of industry changes.
Nutritious selections from consumers.
Consumers are currently demanding energy drinks more than the soft drinks.
Global
Coca-Cola operates worldwide.
Lack of proper distribution channels in some nations.
It can venture into untapped nations.
Competition from other global firms.
Most firms are considering globalization to improve in profits.
Legal and Regulatory
The company adheres to most of the production rules and regulations.
Negative publicity.
There is an opportunity to minimize the various lawsuits that might involve the firm.
Water management rules.
Various rules and regulations concerning the manufacture, distribution, and provision of food products are being set in different nations.
Technological
Has well developed organizational architecture.
Constant fights over various technologies in production.
Availability of new production methods.
Change costs of acquisition of new technology.
Most firms are enhancing technological improvements.
Economic
Many people are aware of the Coca-Cola brands.
Fluctuation of foreign currency is a weakness.
Most countries are improving economically.
High cost of ingredients for producing energy drinks.
Consumers are cutting down consumption of sugar-sweetened drinks.
Social
It enjoys high customer loyalty.
Political stability in some nations affect the firm socially.
The division can create a more inclusive CSR measures and values.
Interference by some sets of stakeholders.
Most firms are involving consumers in decision-making processes.
Competitive analysis
Coca-Cola enjoys a large market share.
Traces of pesticides in some drinks have damaged brand image in the past.
Diversification of production.
Indirect competition from firms like Starbucks.
Most firms are considering diversification to improve their competitive edge.
Environmental
Has a history of encouraging recycling as a means of environmental conservation.
Does not take care of water management.
Should engage in environmental conservation educative activities.
Water is becoming limited in different places.
Environmental protection awareness has been the talk of the day over the past.
Innovation
Coca Cola has a highly innovative team.
Failure of some innovative processes.
The firm can come up with more nutritious and healthy products.
Product development and research may be copied by competitors.
Different firms are currently involved in numerous research studies.
Explanation / Answer
Coca Cola Company –Energy Coke market analysis
The report provides an in-depth research of the various strengths, weaknesses, threats and opportunities that the company faces for its strategic plan to create a new division for its Energy Coke product and cater to the growing energy drinks market demand.
Coca cola is a big company with an extensive experience in the foods and beverages market. It has well-developed organizational structures, sound strategic planning, big resource pool, established processes and systems that other entrants in the sector can learn form, goal oriented focus, innovation supporting culture, technological powers, supportive and best in the class leaders, and intellectual property rights in its name. It has survived and rather thrived through various industrial changes, being global its products have reached to numerous geographies, and due to its experience in this business the company adheres to most of the production rules and regulations needed. The brand enjoys high level of customer awareness and loyalty and posses a huge market share and with its innovative outlook the company is also working on its environmental impact. Overall the company is in a very sound position to launch its new product in the energy drinks market as it has both the capability and the resources to achieve this successfully. The only major concern with the company is their water management strategies, which the company should work on to achieve strategic success.
Moreover the company’s adaptability to change, and might and capabilities in supply chain management with a huge global network, act as major drivers for the company which can ensure company’s success with the new product.
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