Business Policy Coco Cola

In strategicalalalalal formulation government activitys pick out give of diverse techniques much(prenominal)(prenominal) as establishing the weaknesses, strengths, threats and opportunities as advantageously as the kind, economic, political and technological investigating of the surroundings surrounding the organization. In this perspective, the major objective of strategic sum up in any organization is to establish and destine a buy the farm course of its emerging operations. As a give, strategic training in any organization examines to solicit several questions concerned with how, to whom and what to do in mark to achieve the future harvest path that will accelerate the positiveness and expansion of the fiat. In the development of organisational strategies, milieual depth psychology is then primaeval to the development of the organizational future (John, 2001).In this regard, analysis of strategies must be carried both externally and internally i n order to locate threats and opportunities that prevail in and around the organization. galore(postnominal) companies dedicate got faied to start out sancti geniusd strategic readying techniques and the marrows of the current ecological niche has therefore downed on them. Such companies accept world-wide Motors and AIG to mention a few. In the subsequent section, this work will seek to explore strategic castning in coca plant pot fellowship. 2. 0 The size fittingness of strategic intend in Coca-genus poop association Strategic proviso is important for Coca Cola keep caller due to the position that as a global follow, sumual strategic readying swear outs in counteracting the challenges that be common in foreign countries such(prenominal) as competition and governing regulations.An an other(a)(prenominal) vastness of Strategic cookery is that it helps the Coca Cola go with to survive the current changes in the communication technology by super inves ting in internet commercialiseing and advertising. For Coca-Cola Company to maintain its wide drift of beverages and customers, Strategic Planning is sensation of the outmatch theorys that its management has seriously invested in. This in pass has benefited the caller-up by giving it clear direction and purpose (Roger, 1995) Furtherto a greater extent, strategic Planning helps Coca-Cola Company in balancing productiveness be and other related initiatives with the tax income generated. In this bureau unnecessary costs be debared thusly outcomeing to step-upd meshworkability. In context of Coca-Cola Company strategic cooking involves the allocation of resources which includes people and capital.Strategic supply is excessively essential for Coca cola Company since It helps the teleph singler in facing its competitors. done better understanding of the Weaknesses, Strengths, Threats and Opportunities of its competitors the company has been adapted to diversify it s range of products as healthy up as producing high tonus products which squander proved hard to emulate by the competitors (John, 2001) According to John, the importance of Strategic planning is quite signifi bottomlandt since it helps the Companys management in dish outing the following third questions. The first question is how do Coca-Cola Company excel? The second question involves what does the company do in order to be the merchandise leader in the wanton suck?The management is adequate to address the question for whom do we do it? underlyingally in strategic planning the cardinal questions buttocks be publicized by reframing them into one major question that is How basin Coca-cola company avoid the negativities of competition or similarly which admittanceal measures can be put in place in order to beat competition? (Bradford, Robert, Duncan, Peter, Tarcy and Brian, 2007). The company has 6 super recognized strategic planning strategies that have to a la rge purpose contributed to the continued success of the company. The liberty that is experienced by most of the Coca-Cola distributors have enabled the freely integration of these priorities into their business plans.The six strategies are as follows. The first ones is that the Company will always use Coca-Cola as its brand name and its main activeness will be production of carbonate soft drinks. The second schema is to let out its brands in order to increase its profit. It is through this initiative that the company has added new products which include bottled water, coffee, tea, juice and juice drinks. The third strategy is the hook onion of cost hard-hitting and drive efficiencies as a result of economies of scale. The fourth strategy is serving its customers with consistence and creativity in this way it has been able to help the growth of its customers as hygienic as its own expansion.The fifth strategy is fashioning heavy investment in production technology in this way it has been able to meet the penury of its customers. Being a company that highly values sober relationship with its bottling parcelners and its employees the company has emulated the strategy of teamwork as the sixth strategy in order to increase its gross revenue and profits 3. 0 Can an organization survive without strategy planning? Coca-Cola Company and any other international company cannot survive without strategic planning since this is the only way that the company will be able to successfully and actively face the challenges that have resulted to the autumn of big entities such as Morgan Stanley, AIG and nonetheless the recent disintegration of General Motor.The company can hardly survive without trategic planning due to heavy competition and modalityrn merchandising technologies that have been adopted by many companies in the beverage application so as to improve on both quality and quantity of the products. As an example let us weigh at the General Moto rs as one of the recent victim of failure to adopt strategic planning (Bradford and Duncan, 2000). The fall of General Motors can be traced to the in strong strategic planning methods that have been adopted by the corporation making it to declare itself bankrupt. trenchant strategic planning was the missing concept that would have saved the 235,000 employees as tumefy up as the shareholders and other stake holders who had recreate in the corporation. The question of deferral and the cut demand in the world commercialise cannot be ignored as one of the major causes of the downfall of GM.However, the failure to plan and to put in place effective control measures has to a great extent contributed to its poor performance. Effective strategic planning is crucial barb that keeps companies ready to swindle micro and macro economic obstacles such as inflation and recession which GM, AIG and Morgan Stanley banks failed startle leading to their collapse (Hitt, Tihanyi, moth miller and Connelly, 2006). 4. 0 Different carry throughes and modes of planning, and its effect on the strategic planning fulfil There are various processes and techniques of planning that an organization can adopt depending on the prevailing market, meetionate and economic conditions (John, 2001).4. Customers relations strategy This mode of planning considers the importance of customers in a firm. A company adopting this strategy aims at keeping its customers satisfied as well as maintaining the customers loyalty towards its products. The effect of this planning technique towards the strategic planning process is that it helps in achieving and maintaining the high number of customers thus increasing its total sales (http//www. civicus. org) 4. 2 Cash-cow strategy This is a strategy that oversees the use of profits gained from the operations of the companies so as to improve its management as well as to expand the range of its products.The effect of this mode of planning on the strate gic planning is that it corresponds continuity of the company operations and hence it acts as an appropriate tool to face off the competitors (John, 2001). 4. 3 sensory faculty strategy This is a planning technique that involves increased reinvesting of the profits so as to be able to address future challenges that companies faces in foreign and domesticated market. The effect of this technique on the strategic planning is that it helps companies to put in place effective and strong financial strength undeniable when penetrating global market. 5. 0 humor of planning followed by the Coca Cola Company and how this process can be amend.In its operations Coca Cola Company has adopted the customers relations strategy. The company highly values its customers and as a result it has invested in tailor made drinks that aims at fully satisfying its customers. In its marketing strategies, the company has adopted the target marketing and product variety marketing processes. bearing marke ting involves selection of part of the self-colored market and producing tailor made products that satisfies its customers in that particular market. In its endeavors as the market leader in the soft drink industry, Coca cola Company has embarked in producing a wide range of products which makes it realizable to stay ahead of its competitors.The process of planning used by Coca Cola Company can be improved by adopting set strategies that will make it easier to penetrate the market where its competitors are fling products at low prices. 6. 0 task 2 External environs is imperturbable of government or political, economic and societal purlieu. This section looks at the impact of these factors on the task surround of an organization. 6. 1 administration/political environment In its operations an organization should put into consideration government regulations that directly or indirectly bushel its activities. The legal requirements of a company which include trade licenses and permits should be timely acquired to avoid any fine or legal implications in an organizations which results to delay and time wastage.Another way through which government regulations affects the task environment of an organization is by regulating the quality of the products and run that are produced by an organization. In this way the company has an obligation to ensure that the legal specifications and the safety of its products are well adhered to in order to safeguard its customers (http//www. planware. org/strategicplan. htm) 6. 2 Economic environment Economic environment that affects the organization task environment includes inflation, recession and the unemployment level. During inflation the costs of production goes up making an organization reduce its productivity thus diminution its sales as well as profits.Recession on the other hand intensively affects the task environment of a company by slow down production activities thus alter its sales in both domestic and fo reign market. This can be show by the extent to which recession has negatively affected the operations of big corporations such as General Motors and AIG. Unemployment level reduces the usable income of individuals thereby reducing their demand of goods and services which results to reduced operations of an organization (Hitt, Tihanyi, Miller and Connelly, 2006). 6. 3 Social Environment The social factors also affect the task environment of an organization. These factors include level of education, eating habits, unearthly and cultural beliefs of communities.The education level of the society highly affects the demand of the firms products for instance where bulk of people are educated and have high level of income, the demand for basic of necessity and luxuries goes up. Similarly, cultural beliefs and religious beliefs affect the demand of some products and services much than others especially where some cultures do abrogate the use of certain products. Social factors therefore affect the task environment of an organization by affecting the demand and the supply of goods and services (Patrick, Burkhart and Suzanne, 1993). 7. 0 How can Managers hear and track these external strategic factors Managers can identify the external environment by analyzing the external environment.In this, managers will be able to identify the opportunities, strengths and weaknesses related to these factors and their relevancy in the performance of a firm. In addition managers should freely intermingle with the external environment as well as the general society during the social corporate responsibilities. In this way it will be flourishing to identify and track the external factors and be able to come up with strategic planning techniques to address these factors (Wang and Jiatao, 2008) 8. 0 Factors in the external environment that would influence strategy planning in Coca-Cola Company and part they play in strategic planning in the CompanyThe factors that would influence st rategy planning by Coca-Cola Company can be viewed in two proportions. The first one is from economic perspective. This involves the increase or come down in the demand of coca-cola brands as result of inflation or reduced get condition. The reduction in consumers purchasing power causes a decrease in demand for coca-cola brands resulting to a decrease in sales level. In this case the Coca-Cola management needs to put in place effective strategic planning in its pricing concept such as reducing prices or initiating more promotions. The second dimension is the composition of the society. A society with more young people is a social market for Coca-Cola brands such as shock and Fanta.In this way management of Coca-Cola Company should initiate effective strategies in order to increase the sales level and at the aforementioned(prenominal) time satisfy its young market without neglecting its old customers by initiating more zip drinks for young people (http//www. wowessays. com/d base/ab1/iev224. shtml)9. 0 ReferencesInformation on strategic planning for non-profit or for profit organizations available from http//managementhelp. org/plan_dec/str_plan/str_plan. htm (Retrieved on fifth heroic 2009)Information on strategic planning process available from http//www. quickmba. com/strategy/strategic-planning (Retrieved on 5th August 2009)