Focused on driving revenue and profit growth… 1 answer below »

Business Tactics and Execution-M2A2
Frederick J. Long
Argosy University
Introduction
Coca Cola was founded in 1886 and is headquartered at Atlanta, Georgia. It produces carbonated soft drink. The company was brought up by a businessman Asa Griggs Candler. Coca cola is now the largest soft drink company in the world. The company earned revenues of US$ 44.294 billion and net income of US$ 7.351 billion in 2015. The company is operational in more than 200 countries worldwide across 6 operating regions. The company has its particular website for each location. The company homepage can be viewed through www.coca-colacompany.com (Coca-Cola Company, 2016)
Organizational Strategy and Business model
The strategy within the company is decided by the top management and is reviewed by them on annual meetings in order to check that they are in line with the changing environment. There are five strategic actions on which the company works: (Coca-Cola Company, 2016)

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  • Focused on driving revenue and profit growth – The company uses segmented revenue growth strategy which varied by market type. The company focuses on increasing volumes in emerging markets by keeping the cost of beverages affordable. In developing market, the company makes balance between price and volume.
  • Investment in business and brand – The Company invests more and more in better marketing of its brands. Along with this, the company also invests on their expansive beverage portfolio.
  • More efficient – The Company is working on financial flexibility. They increases their efficiency and productivity while reducing costs. They start the business with the assumption of the organizational budget to be zero.
  • Simplification of the company – The Company from time to time takes steps to reshape the business. Looks and identifies areas where the company can be smarter, faster and more efficient. The company has removed functional management layer and has connected their regional businesses to headquarters directly. Many internal processes have been streamline.
  • Focus on core business model – The core business of the company is refreshing beverages. But, the company has expanded its portfolio which includes 500+ brands. The core competency of the company is that they are market leader. They have managed and acquired number of bottling partners which helps the company to optimize manufacturing, improve performance and refranchise the bottling territory.

Product, Industry and market position
Nielsen (2015) forecasted that there will be increase in overall beverage market. It states that overall volume decline is expected to brands as consumers are expected to switch to new and premium products. Companies, on regular basis developing new healthy beverages. Euro monitor (2016) states that growth of carbonated soft drinks has slowed sharply over last five years. Habits and demands of consumers are changing and reshaping the category. The Company has more than 500 sparkling and still brands and more than 3,800 beverage choices. Coca- Cola is world’s most valuable brands. The company features 20 billion dollar brands. 18 products out of this product line is low or no calorie and reduced cost. The Company is well recognized in product line of juices, juice drinks, sparkling beverages and ready to drink teas and coffee.
Conclusion
The Coca Cola Company has faced many challenges. They have economically recovered in the fragile developed markets. Despite of these difficult situations, the demands and desires of the consumers always changed and trend of healthy and diverse beverages became a challenge to the company. Sugared drinks were publicized negatively in the market. The company converted this challenge into an opportunity and through their R&D was able to outshine by fulfilling this demand.
References
Coca-colacomapny (2016), company website details extracted from http://www.coca-colacompany.com/careers/who-we-are-infographic on 07 Nov, 2016
Coca-colacomapny (2016), article titled “Five Strategic Actions”, extracted from http://www.coca-colacompany.com/stories/five-strategic-actions on 07 Nov, 2016
Nielsen (2015), article titled “2016 Beverage Sales Forecast: Consumers are thirsty for health and innovation”, extracted from http://www.nielsen.com/cn/en/insights/news/2015/2016-beverage-sales-forecast-consumers-thirsty-for-health-and-innovation.html on 07 Nov, 2016
Coca-colacomapny (2016), article titled “Brands”, extracted from http://www.coca-colacompany.com/brands/the-coca-cola-company on 07 Nov, 2016
Euro Monitor (2016), article titled “Beyond Soda: Opportunity in Sparkling Beverages”, extracted from http://www.euromonitor.com/beyond-soda-opportunity-in-sparkling-beverages/report on 07 Nov, 2016

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