Description of Coke Organization
Discuss about the Supplier Selection Of Coca-Cola Company.
Coke Bottling Organization remains to be a Multinational Corporation that deals with processes of manufacturing of the non-alcoholic beverages or soft drinks. The successful operations of this organization rely on its abilities to manage its supplier selection around the international marketplace. The company has been serving the global society with soft drinks since its establishment and this has made its supplies to be the leading brands in the soft drink as well as beverage industry. Headquarter of Coca-Cola is based in Atlanta a city in Georgia (Hartogh 2012, p. 12). The company also operates in over two hundred nations, and it markets more than five hundred brands along with over three thousand and three hundred beverage products. The management of the company believes its strength to be lying in their capacities to have the global reach and at the same time have the local focus on the ideal process of selecting its suppliers. In recent time, COKE Company manufactures and sells concentrates, bases of beverages, together with syrups to different bottling operations, as they own the brands and remain responsible for initiatives for their brand suppliers and marketing globally (Gupta 2011, p. 23). Besides, vision of this organization is to be extremely proficient organization where individuals can efficiently work while aiming to attain maximization of profit while serving several people in the society. The principal target of this organization is to develop the worth that creates distinction through refreshing global society as well as inspiring the happiness together with the optimism of the world. Additionally, Coca-Cola Company has produced many other products that include coke-zero, coke-vanilla, Fanta, coke cherry, diet-coke, Sprite, Caffeine-free-coke, and coke cherry among other products (Sundar 2012, p. 2). Therefore, the principal target of this research paper is to explore supplier selection ideas that Coca-Cola Company deals with during its operations in the competitive business marketplaces.
The operations of Coke Corporation operate with main priority of reaching their products to targeted and esteemed customers globally. The company focuses on improving the suppliers of products itself either by designing, tasting, adjusting size, ingredients, convenience, and other more different factors (Wang 2015, p. 17). Besides, market or product focus of the Coca-Cola Company target market by satisfying the wide variety of cultural clients around the marketplaces. Therefore, the business model for supplier selection of Coca-Cola Company based on the enduring targets, objectives, along with the vision that tends to declare its principal purpose. All these factors that affect suppliers selection then serve as standards against that the company uses in weighing its operational decisions together with decisions. About diversification of business during the range of suppliers, the company outlines a specified mission as well as strategic plans to help its operators to attain the economics through the process of sharing activities during operations (Harper et al., 2016, p. 245). Therefore, model of action of Coca-Cola Company aims at refreshing the entire international mind, body, and spirit by providing quality products and services during supply operations. The company also has its supplier’s selection target set for the provision of inspiring moments of happiness and optimism through the ideal arrangement of brands and actions of high quality in different markets. Additionally, the company operates its management of suppliers’ selection by concentrating on the vision that focuses on activities of attaining its underlined strategic objectives along with goals (Gupta 2011, p. 3). Therefore, the business model of Coca-Cola Company as evolved from sparkling beverage business to diversified business that comprises stills from now premium beverages.
The business model of Coca-Cola Organization
The supplier and business partners remain to be the vital factor for the continued success of operations of Coca-Cola Company. It helps the activities of the company to concentrate on ideas of the refreshing world, more than one point seven billion times daily, by the process of delivering vital service along with products for the business of the organization (Morkhov and Ryabukhin 2018, p. 69) The need of value-adding concept in operations of this company plays an essential function in triumph of its operations. It assists on improving valuation of Coke products while decreasing wastage within the supply chain of the organization. Therefore, critical capability of this corporation remains to focus on the ideal way of making supply chain and its selection to be effective that it can result in the profitability of the organization. The company’s capabilities focus on establishing appropriate visions and values to work together to offer the supplier selection the winning culture that assists in defining the attitude and behaviors towards the business operations (Gertner and Rifkin 2017, p. 168). These capabilities of the company serve as the compass for its business behavior as well as actions that always revolve around the passion, leadership, diversity, accountability, together with the improvement of collaboration with different parties during supply.
The company mostly focuses on operating through the processes that are tangible as well as the intangible flow of materials and services in its operations. Different strategies that the company uses include the focus on driving revenue and growth of its profit during its operations. The company also concentrates on effective ways of investing in its brands and business (Elmore 2013, p. 721). The choice of spending well in more as well as better marketing of its brands, help in increasing both the quantity as well as the quality of the company’s advertising. The management of company also becomes more efficient by taking different steps that aim at rebuilding momentum by investing in more and better marketing while also increasing financial flexibility of the company. Additionally, the company uses differentiation strategy to support its operation so that it remains the leading beverage and soft drink marketer (Mubayi 2012, p.541). Through differentiation strategy, products and other services offered by the company can then e differentiated from those of its chief competitors such as Pepsi by their improved quality, taste, packaging, pricing, ingredients, distribution and strategies for marketing. All the strategy of this company focuses on choice, convenience, along with the consumer that uses their products and services globally. Additionally, policy on segmentation, targeting, and positioning of the company’s operations remain to be essential for its actions (You and O’Keefe 2017, p. 57). For instance, segmentation helps the brand produced for supply to define the appropriate product for the specifically targeted group of customers.
Key capabilities
The principal goal of operations of Coca-Cola Company remains to be the need to give back as much or where possible, more than they take in return. The company aims at maximizing their profits as they aim at maintaining the long-term growth of sustainable operations within the industries that deal with the beverage or soft drinks. The company works on different goals that strive at efficiently refreshing the world, attaining inspiring moments of optimism and happiness (Mubayi 2012, p. 541). The company also intends at creating appropriate value and makes the difference in the place that the people reside in globally. The company as the goal of working with different partners to recover and recycle different bottles together with cans equivalent to seventy-five percent of those that they introduce into developed marketplaces (Foster 2014, p. 249). The company aims at the process of continuing to invest in various core brands while focusing on critical sectors, clients, and geographies. Besides, the company has the goal of improving competency in specific channels of marketplace such as On-trade, food service, along with impulse while acquiring more brands where necessary.
The need of having a capable system of supplier selection make Coca-Cola Company look at various adding ideas wile it then create appropriate plan to encounter increasing order for the production in marketplace. Having been a chief marketer and supplier of non-alcoholic beverages around global society, Coca-Cola Company still has to keep on the eye on the ever changing era of the marketplace (Wilder 2015, p. 63). The company has to choose their supplier’s accordance to different individuals or stores that can provide them with necessary materials on the timely basis with particular quantity along with quality on the specified locality. Therefore, it remains to be vital for the operators of corporation to recognize ideal process of procurement to choose consistent supplier during their selection. The company also needs to efficiently identify several risks that are involved in the techniques and processes of the supply chain so that they can be capable of decreasing them while enjoying more profitability form their operations (Chen et al., 2016, p. 1477). Besides, there is the need to have the appropriate duty towards the society along with nature that they need to take care and make strategies to avoid the waste of different resources during the process of supplier selection of products.
The idea of using value adding notion in supplier selection within operations of Coca-Cola Company plays a vital function. It performs an essential function in the success of business operations that deal with safe, fast, and quality delivery of COKE’s products and services to targeted clients. The concept assists in improving value of different products while decreasing wastage in the chain of supply of this corporation (Powell and Gard 2015, p. 861). The fundamental idea of value-adding during supplier selection by the company concentrates on how to create the process of supplier selection to be real that it can then leads in profitability of the organization. Therefore, the concept of value-adding help in making the process of selection of supplier of Coke Corporation to be more precious by sustaining firm relations with different dealers or by utilization of advanced skill on usage of technology. The method of using value adding concept in supplier selection by Coca-Cola Company adds the cost of its operation of the supply chain while transforming it into the value chain. The service or products offered by the company for supply can only be valued when it effectively fulfills the necessary needs along with the expectation of different targeted and esteemed customers. For the Coca-Cola Company to be the great provider of value during supplier selection process, it needs to evaluate different expectations and needs of the targeted clients as well as tailor its products or services in accordance to such needs of customers (Aggarwal and Singh 2015, p. 1711). Besides, in this instance of Coca-Cola Company, there are various factors that relate to value adding concept during supplier selection that have the significant influence on the process of chain supply of the organization (Gupta 2011, p. 4). Some of these factors include;
- Different needs of customers
- Taste of customer
- Reliability
- Costs of production
The strategy of Coca-Cola Company
The demand for different clients remains to be the first factor that influences the process that deals with supplier selection of the Coca-Cola Company. In most cases, the company has to develop different demand for the product and people that the organization deals with leading to demand the product in different marketplaces globally (Sundar 2012, p. 3). Coca-Cola Company has concentrated on the need to boost its supplier selection operations. It had achieved such ideas by making the strategy to set up different vending machines for the product of Coke after every five hundred meters. The approach makes people develop different tastes of Coke’s products instead of going to some other product such as Pepsi (Zhou and Li 2011, p. 763). Therefore, such kind of strategies that deal with needs of clients helps the organization in making the demand in the marketplace that has the positive influence on the process of selecting suppliers of the corporation.
The company has to develop the ideal strategy during its supplier selection to ensure that it can be capable of reaching huge customer base. It is evident that the organization has emerge with diverse tastes that consist of Fanta, coke-vanilla, Sprite, coke cherry, and caffeine coke free among other products that come with the variety of flavor (Hartogh 2012, p. 31). The variation in taste on offered products by the organization provides the best opportunity to customers to choose their produce by their flavor along with on accordance to their necessary desires. As corporation that deals with food and non-alcoholic beverages, it needs to concentrate on things that go with estimate by staring to different flavor of clients that they effectively handle during the supplier selection.
Reliability during the selection of supplier selection of Coca-Cola Company remains to be one of the essential factors that have its influence on the process. In this scenario, company’s suppliers and contractor have to be reliable on each other for practical selection. The reliability of collection exertions on hypothesis that dealer has adequate raw resources to encounter necessary needs of the outworker on needed days (Fraser et al., 2017, p. 41). Besides, the contractor has the practical work through which the management can efficiently utilize the resources without ensuing in departing large amounts of resources on process of selecting suppliers.
The transaction cost that affects supplier selection of Coca-Cola Company remains to be the cost involved in making any economic trade when dealing or participating in different marketplaces. Transaction costs help in setting up various rules that the company uses to support and improve processes of selecting different suppliers to achieve the set objective and mission of the company (Sidorick 2016, p. 953). These costs during operations of selecting suppliers by this company help in addressing various questions relating to why its services exist in the first place such as how to minimize transaction costs. The cost also helps in defining different operational boundaries and how management of the company ought to effectively govern its operations about the selection of the supplier.
Goals of Coca-Cola Company
In the last years, the increase rising in charges of food along with beverage organization has led to increases the values of main ingredients in the industry that deals with non-alcoholic beverages and soft drinks. Cost of the production during the selection of suppliers by Coca-Cola Company has the significant impact on the alliances of strategies used in the process (Meena and Sarmah 2016, p. 267). It also impacts the prices of cost-cutting and mergers of the supply chain that resulted in that employee faces the continuous cutting of cist and restructuring, and sometimes the organization can turn to purchase of cheaper ingredients. However, Coca-Cola Company as the leading brand in the soft drink supply in the global community by focusing on the best way of exerting pressure in maintaining the prices down by keeping their image of the brand and similar taste for the targeted clients. (Uchida 2013, p. 843) Therefore, during the selection of suppliers, Coca-Cola Company has the responsibility of maximizing the profit of their operations while reducing operational wastage while fulfilling different customers’ needs. It is vital to reduce the wastage as well as having the effective system of supplier selection to ensure that the product reaches to different customers within the scheduled time. The process of making different Coke’s products to reach targeted clients in time has further made the company to enjoy more returns.
The resources used by Coca-Cola Company for its supplier selection during operations are divided into different assets that include tangible as well as intangible assets. Assets of this company are primarily intangible while dealing with suppliers’ selection. However, these assets are exclusively tailored to competing in the industry that deals with the non-alcoholic beverage (Gurecka et al., 2015, p. 98). The functional strength of the company concentrates on its activities to deal with leadership, innovation, marketing, and human resource departments that are all well suited to the competition that it faces during supplier selection process. As a result, the organization consists of more strengths than weakness in the process of selecting its suppliers to distribute its products to different targeted and esteemed clients from different nations around the global community (Pitchipoo et al., 2015, p. 2061). While there appear to be very few chances for operations of Coke’s company, the organization always succeeds in its operations since it geared wholly towards activates that deal with exploitation of whatever chances that do rise and to developing other opportunities where perhaps there exist none to boost activity so supplier selection.
The company uses the different managerial framework in determining the strategic resources with the potential in the selection of suppliers as a way of delivering comparative advantage to its operations. The use of resource-based remains to form the model that helps in utilizing resources as an essential factor to the superior performance of the firm (Dowlatshani et al., 2015, p. 1142). The resource-based view that deals with procurement in the management of supplier selection within the company helps in improving the sales of services and goods. The perspective makes it vital for people to purchase products and services to be up to spot at appropriate probable economic charge that convenes amount, time, and quality, along with site needs of clients (Linnander et al., 2017, p. 11). The use of procurement in the management of the chain of suppliers assists in following the detailed process while choosing the appropriate supplier for the customer within the set duration.
Conclusion and Recommendations
It is evident from above discussion that process of suppliers selection in operations of Coca-Cola Company remains to form a vital section of its operations. Supplier selection is the critical element of the success of the company as the process of distribution of goods, and its services are incomplete without the successful process of choice of the supplier. Therefore, with appropriate application of strategies of supplier selection, Coca-Cola Company can select the best as well as reliable supplier along with managing the risk related to supply chain of its operations. With such, this company should focus on taking care of the environmental issues that can affect its process of supplier selection. Besides, there is a need for Coca-Cola Company that operates in the present competitive marketplace to focus on the regular check on their operations of supplier selection and keep improving process with the ever-changing business era. The idea can help in capturing the competitive advantage they must maintain innovative new products and services and try their operations in different sectors that deals with food, soft drinks, or non-alcoholic beverages. Besides, the company has to concentrate on the performance of different reforms to attain greater sustainability in ensuring that process of selecting supplier is conducted as per guidelines of department of human resources. Various modes of supplier selection need to be applicable to the process. The supplier selection needs to be efficiently managed to decrease costs as well as delivering products timely along with productively. The management of Coca-Cola Company needs to have appropriate design and placed so that different suppliers, customers, together with intermediates all get benefited from such system for supplier selection.
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