Coca Cola Management the Quality Term Paper

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The company was also performing less profitably than other companies in beverages industry.

The profit margin of the company 7.12% which is lower than those of major company competitors, namely, of Pepsi Co and Hansen, Embotell and must be managed carefully by the corporate headquarters.

The competitive advantages of the company include very high market capitalization, the highest in the industry, very high brand awareness and well developed network of retail locations all around the globe, though facing fierce competition from world wide brands and local brands, good marketing tactics and developed employee selection and retaining process. These factors ensure the company diversifies its' output markets and also enjoy searching of outsourcing and thus less cost consuming production facilities, and spread the output network.

The management of the company clearly identifies the major risk factors associated with the company business and ensure to develop risk management system within the corporation. The major risk factor is the increasing obesity in the U.S.A., one of the largest and major company markets, and increasing health awareness which can lead to decreasing demand for the products which do not qualify as dietary, for the company. This could potentially decrease the company profitability and the company is already taking very strategic correct steps into developing its' dietary products and trying to be competitive in healthy products. The longer term risks which are already though considered by the company is the decreasing amount of water available on the globe and especially the quality of water in countries with cheaper labor where the company targets to transfer production to decreasing production costs.

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The company is also solving the problem of retail channel consolidation in the U.S.A. And Europe and thus will be able to cooperate with shipping greater volumes to one retail location, which could potentially reduce the amount of employees necessary. The management of the company targets to expand as large as possible and to earn biggest possible market share in emerging countries which are according to Kearney Retail Index are the most promising retail locations for the coming years. Thus, the company is strategically right to develop brand awareness and be cost effective in these markets. The other risks of increasing energy costs, risks associated with dealing with one big bottling partner and the company has the correct strategy to maintain good fruitful cooperation with it, and other.

To conclude, the company has good executive management which allows it to enjoy growing revenues, while the company must strive to reduce administrative costs to reach profit margins competitive with those of the industry leaders. The financial management of the company is great and it has the long-term best in the industry debt to equity ratio which is very important in the present era of increasing interest rates. Furthermore, the company has good market share and targets increasing geographic prevalence in very strategically important for the industry locations, which is reflected in overall investors' positive expectations as to future company performance......

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"Coca Cola Management The Quality" (2006, July 12) Retrieved May 3, 2024, from
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https://www.aceyourpaper.com/essays/coca-cola-management-quality-70974
   

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