growth intentions in a firm

 growth intentions in a firm

Introduction

Most firms aspire to develop in order to cement their position in the market and to speedily get to a size that is large enough to amass enough profit to cover their outlays and generate income. Firms expand through increasing sales and strengthening their position in the market. It is important for firms to ensure that their growth metrics are headed to the correct direction to help build liquidity to protect against future risk.

Therefore, a firm needs to adopt various strategies for it to be in a position to grow and deal with the shortcomings as they come along. Such firms that have been adopting suitable strategies include the coca cola firm. The firm began small by employing staffs who had the motive of ensuring that coca cola expanded. Coca cola started in 1894 but incorporated in 1892. Coca-Cola is a multinational corporation having its roots in almost every part of the globe. The firm engages in producing retailing, marketing nonalcoholic beverage syrups and manufacturing other products.  The flagship product of the firm is Coca-Cola. Recently, economic, party-political and social variation made the international environment more unclear compelling coke to reexamine its approaches, structures and methods of doing its operations to sustain a modest advantage. Coca cola has a highest competitive advantage in a market since it has a higher rate of economic profit through creation of more economic value than its competitors do. In different parts of the nation, strikes and demonstrations have been taking place often. The activities have been affecting the sales and profitability of coca cola negatively.

Having employees who have growth intentions are the most critical elements in ensuring that the firm grows. Additionally, despite the fact that staffs are the driving force behind the development of coca cola, there needs to be strategies in place that can push the firm forward. Such strategies may force the firm to source for more consumers through investing in promotions. As a result, coke has been using internet-marketing and making use of the Billboards strategy to gain existence and get the higher hand on their entrants like the PowerAde, Pepsi and Vitamin water.  In addition, producing more products and entering new markets could be of help in enabling the firm to grow tremendously.

Nonetheless, having strategies that prioritizes development and having the workforces who want the firm to grow, therefore, processes should be put in place to facilitate the expansion through implementing of automation software’s which processes goods more efficiently and ensures warehouses are huge enough to hold sufficient stock needed. Additionally, coca cola has to make use of the highest level of technology that is needed in increasing quality products along with providing high level of after sales services.  Although funds are the major hindrance for most firms, coca cola has a very strong financial position by having strong roots in more than two hundred nations where high level of sales are experienced daily. Additionally, Coca-Cola has enough capital and is easily funded by major financial institutions who believes in the firms’ vision thus facilitating its implementation processes. Nevertheless, despite the challenges, Coca-Cola has been able to adopt with the changing know how locally and internationally.

Coca-Cola having grown locally, the demand for its products increased making it to expand regionally. As a result, coca cola has risen to global prominence and is currently the largest nonalcoholic beverage company internationally. Apart from the usual Coca-Cola product and a host of related beverages, coca cola firm has been producing more than five hundred beverages clustered into categories like iridescent soft beverages, sports juices, vitality beverages, tea and coffee.

Coca-Cola is chasing a prospector tactic, growing its global print with heavy reserves in developing markets and a succession of bottler purchases and tactical associations.  Coca cola has maintained strong relationships with the strategic partners thus facilitating in the provision of wide range of products. The firm expanded internationally through establishing about one thousand plants to ensure that the consumers were all served and that the demand was met. However, the firm faced several hurdles of imitations from the competitors and the need for consistency across the product line. As a result, the firm designed bottles that till to date have remained iconic in that the customers can identify the products from a far. The firm established at least nine hundred bottling manufacturing facilities located around the globe. However, portions of the facilities were owned and managed by independent franchises. The firm earns extra competences through its network of self-governing bottlers that authorizes coke to focus on manufacturing and promotion without being bogged down with the high cost-bottling venture.

Coca-Cola is able to sustain its operations through manufacturing and selling syrup to authorized bottlers to make finished coca cola products and to manufacture fountain syrups. Delegation of some of the processes has been of great help for the firms’ expansion as it is able to compete auspiciously with other firms. Additionally, through creation of the coca cola bottling investments group, the firm was in a position to identify and aid the bottling franchises that needed financial and institutional support. Furthermore, coca cola solved its economic challenges such as lack of finances that did drag operations that resulted to logistical and image issues for Coca-Cola. Thus, BIG provided the struggling independent bottlers with the resources they needed to remain part of the Coca-Cola franchise web.

Furthermore, Using experts and resources, Coca-Cola drives profitability and growth in handy. This is effected when the firm realizes profitability and stability in the local market that makes it easy for the firm to find qualified bottlers to resume its enormous operations. The manufacturing of the syrup helps the firm to manage several bottling operations and gather profit on final products. Just like many other forms, coca cola has sustainable goals that require commitments from bottlers. Coca-Cola is apprehensive with external matters and physical steadiness that enables it to lead in the direction of a rational objective emphasis. The firm aims at reducing carbon emissions to be in good terms with the citizens and avoid hefty fines from the hosting nations. Coke has a functional structure with the global division. The firm has also been recycling at least seventy five percent of the bottles and cans that are used in grown markets thus improving water efficiency and returning the water used in the bottling industry to the society and nature. Therefore, adopting the right structure to equal its plan and eco-friendly conditions is a reason why Coca-Cola is operational. Coke structure is designed for efficiency and control thus delivering scope and low production costs.

Coca-Cola has the strongest brand value in the international market. In addition, coca cola has the ability to make significant investments in marketing and enhance its market share. This has made the firm to get more consumers in both the local and global markets. The global leadership of coca cola is recognized internationally. Additionally, coca cola has the best brand equity and revamped products with are changed time to time. The brand equity upsurges because of the fact that the products are differentiated and that the management has a good communication system. An increase in coca cola product quality and uniqueness makes the prices to increase thus helping to satisfy customers demand. This results in capturing the audience’s confidence to make first class charged prices.

As the standards of living of individuals globally is varying rapidly, it can be realized that individuals are having their meals from restaurants as well as other places of leisure. Coca-Cola has been making use of such opportunities to create strategic alliances with hotels and restaurants. This has made it easy for the firm to enhance the supply chain and marketing by creating the associations. Through the alliance, the firm thus can increase its profits and sales through marketing.

Challenges

Going international is always a worthy venture, but it does bring with it abundant challenges. It is important for firms to have effective plans in place to address the imminent hurdles they may need to overcome, grow and prosper.  Coca-Cola biggest defies is the chubbiness endemic and consistent shifts in public taste away from sugary drinks. Nevertheless, the firm has been in a position to curb the menace by focusing its products development and other efforts on matching consumer tastes as they vary. Coca-Cola products with zero sugar has been the first into the prospect. The newly developed product has filled the gap for the underserved customers thus offering to any person seeking great coca cola taste with zero calories. There is a lot of competition in the beverage industry. Many firms are struggling and trying to introduce products and sell them at lower prices to remain relevant in market. Coca-Cola enjoys brand recognition that is fundamentally unchallenged on a global scale; however, the firm needs to be attentive in making certain that it persists to associate with potential clients.

Additionally, water being the essential raw material for the coca cola products, there has been issues with water supplies and the quality required has been of huge impact to the firm. Coca cola has therefore been in a position to ensure that the products used to make the final consumer goods are of great quality and that have no negative impact to the customer. The fact that Coca-Cola relies on the retail for distribution to effect its operations in terms of delivering its products to the customers globally, disruptions of the retail landscape could introduce new challenges. To curb the menace, the firm has been using strategic means of ensuring that the products reaches to the clients on time through contracting reliable firms that are well equipped to ensure timely delivery and reduce the customers disappointments. As a result, the firm has proven to satisfy all levels of ages consuming the coca cola products anywhere in the globe.

Not every product is readily accepted in the foreign nation, Coca-Cola products faced a lot of backlash in several foreign nations. The products could expire while in the shelves due to the beliefs that the products would cause severe harm to them. Social beliefs have significant impact over the firm and profitability of Coca-Cola. Most individuals in different nations prefer to consume their local products, which are healthier like juices compared to international products like the Coca-Cola.   Therefore, the firm took an important initiative of overcoming this cultural challenge by taking its operations international so that the firm could assimilate with the individual who would become the customers. However, new country would men new consumers. Thus, the firm would be required to invest in promotion to sensitize the society of the product existence. This can facilitate to the establishment of the kind of thee consumer bas necessary for the firm to be successful with internalization in the long term. Coca-Cola can achieved this through trans-creation that allowed the firm to adapt its marketing content to a new foreign market. To minimize loses to the foreign nations, coca cola invests in researches to select the appropriate nations to establish their business and sell the products. This is achieved through examining the profits and shortcomings of every nation to determine which markets are the most ultimate for globalization. Additionally, Coca-Cola had to come up with tactics that will aid the prospective consumers to read and understand the documentations or instructions inscribed on the bottles.

Strategic positioning of coca cola

orces Model

Rivalry

Among Firms

Entry Barriers

Supplier

Bargaining

Power

Buyer

Bargaining

Power

Substitutes

Coca-Cola has high

Brand dominance in mkt.

Low buyer

Bargaining

Power. BUT

Coca-Cola do

Have to be

Careful not to

Price

Themselves out

Of the market

Coca-Cola Company has wide product

Portfolio ∴ low threat of brand substitution

Non-alcoholic drink target sector

Porters 5 forces Model

Rivalry Among Firms – major competition is limited to small number of big players in this case Coca cola is the leader. The coca cola firm producing more value than the competitors has achieved this. Coca cola is in a position of offering more consumer surplus like the rivals through its superiority value and still make an economic profit.

Coca cola has the high brand dominance in the market thus; there are Entry Barriers in the market. The firm also offers a full line of products to serve a range of consumer groups. Not many firms have the capacity of producing, distributing and marketing at once. Therefore, coca cola has the capacity to do all that thus making it difficult for new entrants into the market.

Supplier Bargaining Power is low due to the scale of coca cola.

There is low Buyer Bargaining Power in the market; however, coca cola has to be careful not to price themselves out of the market.

Substitutes. Coca-Cola firm has wide product portfolio with low threat of brand substitution in the non-alcoholic drink target sector.

Coca-Cola has gained the competitive advantages through acquisition of superior resources and skills.  The resources have facilitated the firm to do better that the competitors. The firm applies position advantages to maneuver the competition experienced globally. There is harmonious relation between coca cola strategies and tactics that results to optimum bounded by efficiency thus resulting to the firm’s success. Therefore, coca cola is thriving internationally through having the desired effect and producing the intended result and being able to work well and without wasting resources.

Dealing with entrants

Coca-Cola is the market leader internationally in beverage market firms. Competitor’s entrants in the industry is low because there is strong competitive industrial pressure because coca cola has a good brand name in the beverage market. Coca-Cola firm has a higher bargaining and buyer power. This is because the beverages are readily available at hypermarkets, supermarkets and in discount stores.

Conclusion.

Coca-Cola being the market leader for the beverage industry with 49% shares of the total beverages companies in the world.  The firm has done a tremendous job in attracting and retaining consumers using numerous marketing strategies in the international markets. Therefore, the firm has attained in its place a symbol of global product. Due to the firms fast growth in soft drinks and  excellence performance, coca cola has been ranked as the third top brand value after apple Inc. and Google Inc. coca cola firm has numerous products that remains to the commitment of the firm that the products provides the refreshing, sustaining and that quality remains the same in the whole world. Individuals globally are addicted to the firm’s products.