Analysis of coca-cola company
Coca Cola Company is one of the largest drink manufacturing companies in the world
It manufactures and distribute large amount of drinks to various parts of the world and this helps in raising the living standards of the people. Such drink makes life comfortable as they serve as refreshers. The company has over the last years been producing the best quality of drinks suitable for human consumption and this has helped in tagging it the best drink manufacturing company. The company has not only benefitted from the tag it has received but this has also helped in the market forces. The sales of this company have shown some bits of improvement for the last five years and a lot of development and expansion has occurred due to the maintenance and improvement of their financial stability.
The company has always helped in boosting certain business organizations as well as some of the sporting activities taking place worldwide. From all these boosting, the company has been able to achieve some of its aims and objectives. Some of these objectives are; to create good relations with the entire public, find some bit of income, advertise their goods or product, help other organization in realizing their dreams, and overcome other related companies that subject them to stiff competition (McKay 50). The company considers all these activities it involves in as sources of income and also as an opportunity to explore certain business techniques. From these the company also gets glues or the methods of business management used by certain business firms that are of the highest caliber.
There are certain obstacles that at times tend to hinder the company from achieving some of its sets goals or objectives
These obstacles are not necessarily meant for the Coca-Cola company but all other organizations or business firms that help in production of the same products or any other firm undergoing the kind management similar to that of the coca-cola company. However much the company has been successful for the previous years, there are certain hidden factors that do affect it though they appear minor to both the company and the entire public. Due to this minority nature of certain company problems, the company’s management committee neglect them not knowing that the build up ending up affecting the company negatively. This neglect can cause great loss to the company and may be to include is the collapse of the company.
There are external factors that tend to hinder some of the coca-cola activities such as distribution of the goods and consumption by the consumers. Some of the external problems that the companies face are;
- Pests: This refers to companies that tend to for obstacle to the distribution and marketing of their goods. These companies which are also the competitors of the Coca-Cola Company undermine the coca-cola products during their advertisement hence reducing purchase rate of the coca-cola products. An example to these companies the Pepsi Company.
- Market forces: The Company experiences poor purchase of their goods by consumers. This is brought about by poor transport system as it cannot avail its goods on time to where needed.
- Currency: The coca-cola company trades with countries with different currency. This greatly affects the company as some of the currencies are weak and therefore interferes with the selling price or purchase price.
The company is divided into sectors and these sectors perform various tasks in the company. These sectors are divided in relation to specialization. Only those who are specialized in these sectors are expected to perform tasks under these sectors. Just to give an example to the sectors of work, we have the editorial committee whose work is to monitor the expenditure of the company, next is the management committee and this includes the entire managerial board committee. With this short example, it can clearly be figured out that due to many sub-sections within the management of the company, the is always a probability that the company at times can be subjected to wrong decisions
There are certain prevailing factors that can lead to the collapse of the company if not taken into consideration. Some of these factors are highly poisonous and cannot only lead to the collapse of the company but also affect employees of the company negatively. Some of these factors are; stiff competition, social factors, political factors and technological factors. Each of these factors has its own impacts to the company, be it negative or positive. The negative impacts outweigh that of the positive impact. Some of the negative impacts of these factors are as follows;
Stiff competition as a factor
The coca-cola company experiences a stiff competition from some of the neighboring drink manufacturing companies. The competition involves a lot. The competition in this case is divided into different sections or it can simply be said that it is of different forms under different field of the production process. The competitors of the coca-cola company compete in different ways. Competition from companies has really dragged down the financial stability of the coca-cola company (Pendergrast 32). The coca-cola company does not have major competitors but just minor ones that tend to be putting a little pressure on them. Some of these competitors are the Tango, supermarkets such as the Tesco cola which is a largest supermarket that manufactures and distributes drinks and lastly is the Safeway’s cola company.
Political factors has over the recent years affected the management of the company in that there has been a drastic fall in the market forces of the company due to lack coordination with the countries which are politically unstable. Some of the changes in the nature businesses that are involving the alcoholic beverages can at times gain pressure in the prizing and may be competitive products. Another key point that should not be forgotten is the ability to make an improvement in the global market. The company can also face this as a result of its competitors. Some of the political factors are things such as political instability.
Technological factors have affected the level of production in that there is no advancement in technology. The company runs sort of the modern machines that can help in efficient production of the company. Apart from all these factors, there are also some of things that might lead to the collapse of the company. Some of these things are directly linked to the company. Though they are not so much but a little negligence can lead to the collapse of the company. The coca-cola company has been always been successful and is the second largest bottler in the United States. The company has been leading in the selling and distribution of beverages though it encounters some problems in their project costs. In 2009, a Microsoft carried out a case study that found out that the company had been using software that had expired linked to their project management. It was from this software that they were to upgrade their money, and time, maybe not to forget is the maintenance cost. It is from this that the company began searching for better solutions to their problems. This solution was meant to forecast and capture their project cost. An example of the technological factors is inadequacy of communication links.
Some of the factors things that affect the company both positively and negatively are as follows;
The company as the leading manufacturer and distributor of beverages that are alcohol free in the world has a strong and a super brand recognition and portfolio. The company produces products of quality hence is allowed access to over two hundred countries and this has perpetually led to achievement of its market forces.
There are low levels of performance in the company as some of the company’s duties are done sluggishly due to lack of efficient machines that can help in performing such tasks. The company is also has a weakness of not responding to customers, evolving tastes.
The company is in a continuous process of expanding its distribution internationally and this helps a lot the marketing of its products. The high expansion rate in this case is due to good relations it creates with members of the public. With good relation between countries, access is achieved and the company continuously expands its sub-branches. Other opportunities that the company enjoys are advertisement opportunities and distribution opportunities. This is because many countries allow them access and considers there products up to standard.
The threats of the company are the intense of stiff competition it experiences from other drink manufacturing companies. Another weakness is the dependency on other bottling partners and this cause slow rate of distribution. It also experiences a slow growth in processing of carbonated beverages. The main threat experienced by the company is lack of technological machines that can make their production faster and efficient.
- Pendergrast, Mark. For God, Country and Coca-Cola. Basic Books. 2006. p. 32.
- McKay, George. Consumption, Coca-colonisation, cultural resistance. Edinburgh University Press, 2008. 50. Print.