The Coca Cola Case Strategic issues lie within the middle of a business, and they could the pivotal point in the business. By that, they should be considered as part of the reasons that could cause business to get a profit or go at a loss.
These could be issues that could be considered unresolved in the manner that they need decisions to be made upon them. The main strategic issue in the coca cola case could be considered the fact that they ought to consider what it is that most probably could be needed in the market.As per their case, they ought to have realized that Americans take more soda than they do beverages. They then should use this for their plans in their production. They also should have figured the people to whom they would sell their products.
They already addressed the American market in essence that they realized their consumption so that they knew what they wanted like customers. They analyzed the situation in the sense that the consumption of soda could be rated higher than any other of their products. This, therefore, could prove the drink that they should produce and sell most.Competition could also be the next issue that they address. We could see that coca cola and Pepsi could be considered competitors in the sense that they signed a part that they would give each other chances to exploit the market as good as the their company. As much as we could say that the competition is high, consumption of their drinks could be said to be at a better level.
This observation was rated on the fact that the two competing companies could manage a percentage of above 20% in their income. This could be in comparison with other CDS companies within their vicinity.Coca cola faced a major competition from Pepsi, and Cadbury Schweppes yet they could be considered the founders of the soft drinks that they specialize in manufacturing. They used a strategy that was based on the strategy producer option.
To attract more of their customers, they decided on adding some additives that they had not considered before. They also focused on supplier relationships as they negotiated on the part of the other bottling companies that ventured in the market. They also observed chances within their supplies, and they realized that supermarkets were the biggest suppliers for consumers.They, therefore, strategized in line with the larger markets (Pendergrast, 2000). They realized that their focus had been based on retail yet there could be a better market in the supermarket business.
They got rid of the strategy whereby they were based on a single product ad decided to venture into cola and non-cola flavors. This could be considered a strategy of diversification in their products. These companies would need strategic issues that would put their business at a better position. Pest could be a framework that could be used in the comparison of their business environment.They, therefore, consider the sources that could be the reason for their weaknesses and their strength.
With this they could eliminate their weaknesses, and focus on their strength. Competition could be one weaknesses and the large market an opportunity to them. The voice of their customers could also be effective in such situation (Hill, 2010). They realized that their customer’s interests could be based on soda more than other products. This means that it is the sector that they should focus their production.
These tools would be used to increase the market performance of the company hence better production.Porters 5 forces could not be utilized as a tool in the strategic planning of such companies. This is because, it identifies the position within which customers, and retailers could bargain. Being a retail product, the chances of bargaining would not be an option in the market. Though it identifies the strengths, and weaknesses in the market, it would not be advisable in the same position.
The strategic recommendation in this situation would be balancing their products according to the research founded. This could be possible in the sense that they could specialize more in the products that called for the most demand in their market.As a matter of fact, soda should be the best product according to consumer research. Their specialization should lie heavily on this section. The key success factor in the recommendation would be based on different teams being given a chance to come up with different ideas for the implementation.
This they would be able to analyze their internal strength and external weaknesses so that they create better consumer products. Every business should consider strategic planning and organization so that they would get the best out of their business.This comes along with the factor that they should also analyze their strengths and weaknesses as they could be the major part of their business. In short, this is the way they could manage their business running.
References Hill, C. W. , & Jones, G. R.
(2010). Strategic management theory: an integrated approach (9th ed. ). Mason, OH: South-Western/Cengage Learning. Pendergrast, M.
(2000). For God, country, and Coca-Cola: the definitive history of the great American soft drink and the company that makes it (2nd ed. ). New York: Basic Books.