Influence of Coca-Cola Business Strategy on Supply Chain
Business strategy of any company has influence on every aspect of the company. A business strategy determines whether a company would be successful in a particular market or not. A poor business strategy would lead to failure or make a company to be less competitive in a particular market.
Coca-Cola business strategy has been the major reason for its success in soft drink industry. The company’s mission and vision statements dictate the trend of its business. Coca-Cola main reason of existence is given as to bring refreshment. The company is committed to bringing joy by proving people with refreshing drinks. The company’s goals are stated in a simple way. The main goal is to produce high quality products the serves consumers’ desires. The company is committed to protecting it brand by producing uniquely quality products. The final objective of Coca-Cola is to provide consistent good returns to its stakeholders. The company’s ambitious vision has been the main drive to its success. The company aspires make Coca-Cola products within the reach of its customers.
To accomplish it mission and vision, Coca-Cola has adopted various aspects in its business strategy. One of the major influences to business strategy is urging to maintain high quality products and protect its brand. The company has to maintain high quality products in all countries where it invest. To ensure that the products are affordable, Coca-Cola has adopted costs cutting strategies in all of its market. Efficiency in all of its operations is core to Coca-Cola growth strategy. The company ensures efficiency in all of its operations in order enable it counters competition and be able to grow.
Coca-Cola business strategy has great influence on its strategy. Desire to protect the Coca-Cola brand has made the company opt to manufacture the Coca-Cola syrup used in manufacture of its product. Manufacture of the syrup can not be outsourced since this can compromise on the brand. Coca-Cola Company is responsible for manufacturing of the concentrate syrup while manufacturing and distributing the final products is done by partner bottling companies. The supplier required for manufacture of the concentrate includes fine sugar, citrus, water and coffee.
In making decision whether to buy of make, Coca considers such factors as cost, quality and efficiency. Coca-Cola desires to provide its products at affordable prices. It has to choose an option that is cost effecting. Quality of supplies is an important consideration. The company has to maintain high quality standard and decide to make rather buy supplies in order to maintain the high standards. The overall efficiency of either the options is considered before making a decision on whether to buy or make supplies. Evaluation is made to ensure that the option taken does not compromise other operations in the company.
Location of a manufacturing plant has great influence on success of a company. In choosing location of manufacturing plant, Coca-Cola should consider various factors. Availability of raw material is one of the major factors that should be considered. The location should have easy supply of essential supply such as water. Coca-Cola products are consumer products that should be delivery to consumers on daily basis. Proximity to market is thus considered in choosing a location. In addition, infrastructure and interdependence with other components of the company and other manufacturers is also considered.
In choosing relationship to have its suppliers, Coca-Cola considers various factors. Supplier’s competitiveness is considered to ensure that the supplier make suppliers at fair prices, suppliers must be able to supply quality products, organizational structure and technology. The supplier must be able to supply high quality products in order to maintain set standard. The organizational structure of the supplier should ensure good relation while a supplier must be using current and compatible technology.