Environmental Scanning

Environmental Scanning

            Various studies conducted in the recent past, it has come to light that most of the marketing activities of multiple firms are subject to external and internal factors. It has also been proven that some elements tend to control the firms while others are not. For this reason, organisations are forced to adapt to such environments to avoid being affected by such issues. Economists based on some studies describe a marketing environment as a combination of internal as well as external factors that affect the ability of a firm to serve and establish a positive relationship with their customers (Singh, 45). The internal environment comprises the specifics of the firm such as the employees, owners, investments such as machines and materials among others. The external environment, on the other hand, refers to the micro and macro factors. Therefore, it is possible to conclude that forces and actors outside marketing affect the management abilities and their ability to maintain a successful and positive relationship with the market. This paper seeks to address the different management functions for the Coca-cola Company as it strives to achieve its goals.

Research conducted in 2013 reveals that the internal environmental factors affecting the Coca Cola Company include the elements and forces within the organisation that end up changing the operations of the firm. According to the report, these factors include markets, the money available for further investments, and the machinery available for service (Pahwa, and Pahwa, 4). These factors tend to have complete control over the marketer although they are subject to the diverse external environment. To Coca Cola, internal environment factors are crucial just as the external factors by covering the sales department, manufacturing unit, marketing department and human resource department. The external factors in play consider the forces affecting the firm externally. A scenario where the organisation has minimal or no control over them. The two major types of external environment affecting the firm include the task environment that deals with forces affecting the firm directly such as customers, suppliers, intermediaries in the market and competitors (Singh, 45). The broad environment or similarly known as the macro environment forms the second type of external factor in play in the company. These factors have been associated with affecting the entire business as a whole without having direct implications for the firm.

To successfully achieve its goals and missions, the Coca Cola Company has gone an extra mile in ensuring that it possesses a robust competitive advantage which makes its goods even more superior to other assets available to the customers from other competing companies. In seeking to establish a competitive pro, the firm considers the benefit through understanding the products features and its advantages to customers. Besides, the target market is similarly considered which identifies the firm’s mechanisms of creating demand which is the driver of any growth in the economy (Pahwa, and Pahwa, 4). Last but not least, the organisation finds the current competition by identifying its real competitors and determining whether there is a similarity between the products. To achieve competitive advantage, the firm utilises many strategies; some of which are cost leadership where the business provides a reasonable value of its products at relatively low prices. Differentiation is a strategy employed by the Coca Cola Company to deliver better benefits as compared to others in the economy. The final procedure used is the focus in which the company’s management has a better understanding as well as serve their market in a better way.

As stated above, studies approve competitive advantage as one of the critical factors in the success of any business entity. In this case, a multinational company such as Coca Cola has several sources of advantage through converting its procurement abilities as well as its logistics into pros such as large assortments, low market prices and convenience and flexibility. Since the strategies tied with an advantage is what allows a firm to position itself from other competitors uniquely, Coca Cola utilises strategies such as the product strategy which incorporates high quality, increased number of features, performance and designs. This way, the company can successfully separate itself from its competitors as unique benefits are considered better than what competitors can achieve (Pahwa, and Pahwa, 4). The firm similarly employs the promotion strategy to communicate with the target market through advertisements. Through this mechanism, the firm attracts a vast customer base and is seen to appreciate the loyalty of the buyers. Other than these, the firm considers the place strategy in its operations (“Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage, 50”). This strategy is entirely based on logistics in which the firm is ideally located in a region where it has the ability to provided goods when they are most needed. Lastly, a price strategy is employed to bring about competitive advantage in the firm due to competitiveness in the economy. However, any adjustment in prices is in consideration of the customers’ purchasing power.

Upon the development of a strategic plan with specific schemes designed to achieve the goals and visions of the firm, Coca Cola develops and employs measures that are quantifiable performance statements that seek to manage and determine the effectiveness of its strategies. The measures used by the firm include efficiency measures where the cost-effectiveness and the productivity are considered as a ratio of the produce per input (“Global Macrotrends and Their Impact on Supply Chain Management: Strategies for Gaining Competitive Advantage, 50”). The outcome measure refers to the final result of whether the goods met the proposed targets and benefit of activities. Quality measures are used by the firm to gauge the effectiveness of the various expectations as well as showing any improvements in reliability, accuracy, competence among other factors (Singh, 45). Finally, the firm employs project measures to display progress against an initiative with a terminus.

In conclusion, the measurement of strategic plans come in handy for Coca Cola in various ways. First of all, in consideration of an analytical perspective, the analysis can be assumed to guide the technical implementation thereby creating a strategy that allows the implementation of an efficient management system — besides, the measurement aids in the creation of a clear communication channel between marketers within the firm. With a written strategy that identifies the key metrics, the firm is assured of success in the prevailing economic condition. Therefore, it is advantageous as well as a rational means of operation of a business with set and achievable targets and goals.