Bus 5910 Written Assignment 6

Case Study: The Coca-Cola challenges

March 2022
Introduction:

Consumers are growing more health-conscious and aware of environmental concerns. The

ability of an organization to adapt to change and transition is crucial to its success. People

throughout the world are more concerned at all hours of the day and night, and this increased

awareness and information has prompted organizations to act and change. As a result of this

circumstance, the organization was obliged to confront various challenges and push its people

to their limits in order to continue to improve.

Problem Identification

Coca-Cola is facing various challenges, and the only way to achieve its long-term ambition is

to create value for everyone. Excessive consumption of sugary products is hazardous to one's

health. According to the World Health Organization Lavie, C et al, people should consume no

more than 10% of their total energy or calorie consumption in added sugar per day (2018).

The Coca-Cola Company's plastic bottle waste and water scarcity have a significant

detrimental impact on the environment McCormick, E. (2020, February 27). Another

difficulty for the Coca-Cola Company is the expanding number of non-alcoholic beverage

competitors, which demands greater innovation in order to remain competitive.

Simultaneously, as customers have become more health-conscious, beverage companies

producing still and health-oriented drinks have become more competitive. Many of the rivals

are tiny enterprises, allowing them to be more nimble and imaginative than large international

corporations such as Coca-Cola. The franchise business strategy of the organization was also

jeopardized. Coca-Cola sales were based exclusively on the volume of concentrate sold to

bottlers, rather than the price paid by customers, giving bottlers an incentive to use the

valuable concentrate in low-volume, high-margin goods. As a result, Coca-relationships

Cola's with its partners are becoming increasingly strained.

(i) Because of the health trend, the global beverage market faces major

challenges. PepsiCo began emphasizing healthier products and investing more

in new health-conscious brands, with the goal of moving forward with

initiative and commitment to contribute to a healthy lifestyle. Coca-2018

Cola's brand value Sweetened beverages have replaced most people's main

source of calories in their daily diets. Many studies have shown that eating too

much sugar is more likely than eating too much fat to lead to obesity.

Furthermore, disorders including diabetes, heart disease, and cancer have been

linked to global increases in sugar consumption. Coca-Cola Company can

address this issue by using the following measures: no sugar availability,

product placement, packing size reduction, and shopper communication.

(ii) Coca-Cola should maintain contact with customers and buyers in order to

detect and understand the needs and desires of each generation: for example,

the younger generation prefers energy drinks and sports drinks, whereas the

older generation prefers nutritious foods and beverages free of harmful

elements such as sugar and sodium.

(iii) Encourage customers to recycle waste products by educating them on the

necessity of doing so, as well as developing a simple and effective recycling

infrastructure for consumer usage (Chua et al., 2020)

(iv) Another option is to abandon plastics: I recommend that Coca-Cola replace

plastics with alternative materials and modify their product strategy away from

throwaway plastic containers. Coca-Cola should continue to collaborate with

existing partners such as the Marine Conservation/Non-Pollution Marine

Alliance, the World Wildlife Fund (WWF), and the Allen MacArthur

Foundation (New Plastics Economic Initiative) to support garbage disposal

processing in order to help solve the current packaging waste problem (2020,
 March 31).

(v) One of the most important challenges hindering the company's success is the

violation of workers' fundamental rights. Some Coca-Cola China employees

work in dangerous conditions and are compelled to work long days for little

pay. The alternative is for Coca-Cola to adapt its procedures in order to

prevent human rights breaches and to encourage employees to contribute to

the company's success without jeopardizing working conditions. Coca-Cola

should recognize all employees and the contributions they make by providing

equal opportunity to all candidates. It should promote a positive work

environment devoid of physical and verbal discrimination and harassment.

(vi) Coca-Cola should develop a competitive strategy and concentrate on features

that distinguish it from its competitors. To be successful, the organization and

structure of the corporation must reflect that fact and goals. As a result, while

encouraging non-sugar alternatives, a development plan should be developed

that focuses on how they can incorporate the original Coca-Cola, which

contains 35g in 330 ml and has no nutritional value, into a healthy lifestyle,

such as offering smaller bottles and cans to reduce the number of calories and

working on sustainability and green marketing to improve its brand image in

the market.

(vii) Investing more in worldwide efforts that promote physical activity in order to

promote healthy lifestyles that allow people to be active. As a result, Coca-Cola

products will become part of the healthy lifestyles of consumers.

(viii) Coca-Cola is expanding into humid developing countries with a few goods that

aren't available in many impoverished countries, such as Fuze Tea, Dasani, and

Hi-C. Coca-Cola must ensure that these commodities are available.

sugar products, such as a social media, television, radio, and retail advertising

campaign, as well as a competition with prize money and tours hosted in a key

location and at a strategic time of year.

(x) Entering the food industry – Coca-Cola will need to enter the market with new

healthy snacking and food products.

(xi) Improving its water management system and reacting to criticism from environmental

agencies.

The strategic implementation plan is to expand on Coca- Cola's already

established excellent business structure to keep the company on a successful

growth path.

The functional strategy plan:

The functional strategies prioritize actions that can be accomplished as soon as possible. Coca-

Cola will conduct a cost and distinctiveness analysis in their current markets as part of their

overall strategy and provide feedback on current conditions. Coca-long-term Cola's strategy

will examine current markets and regions to see whether any changes or innovations are

required for growth. Coca-Cola will also focus on internal processes in order to reinvest in its

employees and the business (The Coca-Cola Company, 2021).

Milestones:

Milestones will include monthly progress reports for each strategy, the effective execution of

action items, and the overall achievement of each strategic plan and its organizational goals.

The strategy plan's full implementation will take three years from the start date. The strategic

strategy will be reevaluated and revised as needed every quarter.

As needed, the CEO will delegate work to each member of the team. Each team member will

be allocated to one of the strategic plans, together with only one other team member, and will

be expected to collaborate to carry out the plan. Each quarter, all team members will

collaborate and assist one another on all plans as needed.

Allocation of Resources:

Coca-Cola currently possesses various resources that will allow the strategic plan to be

successfully implemented. As needed, all team members could donate resources to their plan.

Every quarter, the team will endorse the original resource allocation plans and be available for

collaboration if necessary to reassess.

Strategies for Managing Organizational Change

To improve the efficacy of the implementation strategy, the Coca-Cola Company should

employ change management techniques. Organizational change management strategies for The

Coca-Cola Company will be a mix of generic, grand, and global plans, as well as value

disciplines. The cost leadership plan's generic tactics will provide The Coca-Cola Company

with product positioning through strategic pricing approaches in comparison to key industry

competitors by lowering production costs and mass-producing things to cut operational

expenses. Another strategy to consider is operational excellence. Important drivers of

operational excellence are product volume, cost, and efficiency. This method, which works well

with the focus leadership strategy, has the potential to save costs by reducing operations and

standardizing products.
 Because The Coca-Cola Company operates in both domestic and international markets, it is

critical to study the company's international strategy. Globalization should be prioritized in

international policies. Because it has already built recognizable logos and trademarks, as well

as the heart of the company functioning in soda production, the Coca-Cola Company can

maximize efficiency while continuing to invest in the firm as a global strategy.

Plan for Risk Management

The development of a risk management plan, as well as the identification of any hazards, are

crucial to the success of the implementation plan. The Coca-Cola Company encounters

various hazards that must be addressed early in order to minimize their impact and any

concerns that may arise later in the process. The risk management strategy will identify and

prioritize dangers, as well as establish targets for mitigating those risks while capitalizing on

potential opportunities. The Coca-Cola Company's risk management strategy can be viewed

as a continuous process that includes monitoring the defined risks as well as other external

events that could have a negative influence on the soda market and the company's operations.

New laws and updated acts dealing with government body regulations, such as the Food and

Drug Administration or the European Food Safety Authority, will need to be reviewed to ensure

compliance.
Conclusion/Recommendation:

Coca-Cola is a well-known brand around the world. Its superior market techniques and great

innovation potential enable it to keep its beverage industry leading position. However, there

are other obstacles and opportunities for improvement, such as the labeling of "junk food,"

issues of contributing to vast plastic pollution, and the problem of deteriorating water

shortages. To remove these images while maintaining stainability, the Coca-Cola Company

should develop more effective procedures and consult with others. The Coca-Cola Company's

commitment to social, community, and environmental issues will grow as these concepts are

implemented. The Coca-Cola Company's dedication has the ability to boost the company's

reputation and gain societal acceptance. The Coca-Cola Company must be concerned about

environmental deterioration and lifestyle changes. reducing plastic bottle waste, water

scarcity, and the high sugar problem, and committing to being an industry leader in health,

environmental protection, and sustainability.

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