Strategic planning is a process to provide direction and meaning to day-to-day activities. It examines an organization's values, status, environment, and relates those factors to the organization's desired future state, usually expressed in five- to ten-year time periods.
Strategic planning is both a reaction to, and a tool for adapting to, those changes, and creating an organization's future within the context of change. Strategic planning provides the means for an organization to adapt its services and activities to meet changing needs in its environment. It provides a framework not only for the improvement of programs but also for the restructuring of programs, management, and for evaluation of the organization's progress in these efforts. The vision or mission identifies the organization's purpose and its desired future state.
The process of internal assessment and future visioning may uncover, with in an organization, differing views of its purpose, its current level of effective ness, and its potential for the future. Specific goals, what is to be achieved, are identified to help move the organization from its current state to the desired future state. Goals may be sequential over, for example, a five-year strategic plan, with a completion date specified for each goal. The objectives may be considered action steps, the accumulation of achievements necessary for attaining each goal.
Objectives answer the questions of who is responsible, what specifically will be done, how and where it will be done, and when it will be completed. The goals and objectives must convey at all times a sense of movement toward the desired end state.
Strategic Management Process Paper Sample
The best portfolio is the one that best fits the company's strengths and weaknesses to the opportunities in the environment. Candler thanked him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but Candler focused on fountain sales. In 21st century the Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as consumers seek brands that honor local identity and the distinctiveness of local markets.
As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows. Page 15 It serves as the standard against which we weigh our actions and decisions. It is the foundation of our Manifesto. To create consumer products, services and communications, customer service and bottling system strategies, processes and tools in order to create competitive advantage and deliver superior value to;. Our vision guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable growth.
People: Being a great place to work where people are inspired to be the best they can be. Partners: Nurturing a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Being a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximizing long-term return to shareowners while being mindful of our overall responsibilities. Coca-Cola Company has a long-standing commitment to protecting the consumers whose trust and confidence in its products is the bedrock of its success.
In order to ensure that consumers stay informed about the global quality of all Coca-Cola products sold in World, Coca-Cola products carry a quality assurance seal on them. As of September , Coca-Cola Zero is available in more than countries. From the original Coca-Cola to most recent introductions, soft drinks from The Coca-Cola Company are both icons and innovators in the beverage industry. Water Smooth and essential, our Waters and Water Beverages offer hydration in its purest form.
Kids Sprite not clearly Kinley Soda Mostly those who defines consume liquor Factors affecting the strategic management issues of domestic and international operations of Coca-Cola Company. Language English used as a second language Use the local language in many situations required Cultures Relatively homogeneous Quite diverse, both between countries and within countries Politics Unstable Often volatile and of decisive importance Economy Underdeveloped Wide variations among countries and among regions within countries Governmental interferences Reasonably Predictable Often extensive and subject to rapid change Labor Skilled labors are not available Skilled labors are often scarce, requiring trainings or redesigned of production methods.
Financing Moderately developed financial markets Often poorly developed financial markets; capital flows subject to governmental control Market Research Data collect is not very easy Sometimes data difficult and expensive to collect Advertising Media are available with some restrictions Media limited; many restrictions; low literacy rates rule out of prints media in some countries Money Must change from one currency to another Transportations It is not developed Often Adequate Control Always a problem A worse problem Labor Relations Collective bargaining, layoff of workers Layoff of workers often not possible, may have mandatory participation in management; workers may seek political change rather than collective bargaining Factors affecting the strategic management issues.
There are some factors which affect strategic of Coca-Cola Company in case of international operation. Language is one of the main considerations when it does business domestically, they generally domestic language. But when it does business outside the country it follows Polycentric policy that is it used different language in different countries.
Side by side culture is relatively homogeneous in domestic operation and quite diverse, both between countries and within countries. Political stability and policy also be considered by the Coca-Cola Company. Control function is done by centrally in case of domestically but when it goes beyond outside, it must work a tightrope between over centralizing and losing control to much decentralizing. Labor is another consideration because their skills and collective bargaining that is labor relation differ from country to country.
Advertising in domestic country is very easy because domestic cultures are known to them. But in case of international operation it faces many problems for advertising such as shortage of media, huge advertising cost and so forth. In case of Coco-Cola Company the market research data is easy to collect but when it goes to foreign sometimes face difficult and expensive to collect data. At last we see that government interference in case of domestically, it is minimal and reasonably predictable but in international operation it is often expensive and subject to rapid change.
Strategic Alternatives of Multinational Companies Multinationals corporations typically adopt one of four strategic alternatives in their attempt to balance the three goals of global efficiencies, multinational flexibility, and worldwide learning. There four strategies are as follows— Home Replication Strategy In this strategy, a firm utilizes the core competency or firm- specific advantage it developed at home as its main competitive weapon in the foreign markets that it enters.
That is, it takes what it does exceptionally well in its home market and attempts to duplicate it in foreign markets. Multi-domestic Strategy It is the second alternative available to international firm. A multi-domestic corporation views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Global Strategy It is the third alternative available for international firms.
A global corporations views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide. Transnational Strategy The transnational corporation attempts to combine the benefits of global scale efficiencies with the benefits of local responsiveness. They produce their products independently in different countries. All countries product are not same. They produce their products by following different strategy for different countries, based on the internal and external environment of the country.
Because each subsidiary in a multi-domestic corporation must be responsive to the local market, the parent company usually delegates considerable power and authority to managers of its subsidiaries in various host countries. This may be stated as the following Figure: Levels of Strategies Corporate Level Strategy Corporate level strategy attempts to define the domain of business the firm intends to operate.
Corporate level strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of businesses. A firm might adopt any of three forms of corporate strategy:. Coca-Cola Company follows related diversification strategy that is calls for the firm to operate in several different but fundamentally related businesses. Each of its operations linked to the others Coca-Cola characters, the Coca-Cola logo, and a theme of wholesomeness and a reputation for providing high quality family products.
Coca-Cola Company follows this strategy because it has several advantages. At first, the firm depends less on a single products so it is less vulnerable to competitive or economic threats. Secondly, related diversification may produce economies of scale for a firm. Thirdly, related diversification may allow a firm to use technology or expertise developed in one market to enter a second market more cheaply and easily.
Corporate level strategies of Coca-Cola Company is following Business Unit Level Strategy A strategic business unit may be a division, product line, or other profit center that can be planned independently from the other business units of the firm. Corporate strategy deals with the overall whereas business strategy focuses on specific business, subsidiaries or operating units within the firm. The three basic business strategy are differentiation, overall cost leadership and focus.
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Coca-Cola Company uses the differentiation strategy effectively. The functional level of the organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to business processes and the value chain. Functional level strategies in marketing, finance, operations, human resources, and R;D involve the development and coordination of resources through which business unit level strategies can be executed efficiently and effectively.
STRATEGIC PLANNING Essay
Functional units of an organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on resources and capabilities on which the higher level strategies can be based. Once the higher-level strategy is developed, the functional units translate it into discrete action-plans that each department or division must accomplish for the strategy to succeed.
Developing International Strategies Developing international strategies is not a one-dimensional process.. Simply put, put strategy formulations deciding what to do and strategy implementation is actually doing it. Firms generally carry out international strategic management in two broad strategies- Strategy Formulation In strategies formulation, a firm establishes its goals and strategic plan that will lead to the achievement of their mission goals.
In international strategy formulation, managers develop, refine, and agree on which markets of enter or exit and how best to compete in each. Strategy Implementation A firm develops the tactics for achieving the formulated international strategies is known as strategy implementation. Every Multinational Companies are developing their international strategies so that they can survive in the complex business situation.
In such aspect the importance of strategy formulation and strategy implementation played an important role. Side by side there is some important process which helps in international strategy formulation. It helps coordinate and guide our activities to ensure quality in everything they do. For entering in to a new market and be survive in the market it always ready to cope with change. Different government policy, economic condition, political situation, barrier and ban are associated with different market.
Identifying external and internal environment strength, weakness, opportunity, and threats is the next management strategies.
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Depending on the scope and opportunity the company will go forward as well as try to resolve the weakness and threats. After entering into a new market Coca-Cola Company try to achieve strategic goals and guide its daily activities with proper observation. Lastly this company establishes a control framework for controlling the managerial and organizational systems and process as well. This company believes that, for taking a position in a new country is fully depends on the good formulation strategies and keeping it.
To do business outside the local market is depending on the quality control of the product and quality ensures the customer perception and the choice for consuming this products. Through this model, we see that the company is first take the response of customers and consumers through market survey.
Then the management accumulates the best quality resources for making their products. They will follow some sequential steps in developing the international strategy formulation. Those steps help the Coca- Cola Company to enter and establish their business in multinational base. They are following multi-domestic strategies for their produced product as well as their marketing system.
The analysis of different levels of strategic formulating of Coca-Cola Company is given below. Mission statement of Coca-Cola Company. This company focused on driving growth in of their business in selected profitable and emerging categories. To develop, implement and continuously improve the integrated management systems in a culture of continuous improvement which:.
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Comments on mission Statements In terms of how they support the strategies The vision statement of this company supports the existing strategies that are generic strategy that Coca Cola needs to pursue is that of differentiation. In their current vision and mission statements, the company says it aims to be a low cost leader, yet through their analysis of the strategic direction, the company needs to adopt a generic strategy of differentiation.
This will allow Coca cola to do two things; 1.
Increase unit sales 2. Gain buyer loyalty However, at the expense of sounding simplistic, it is necessary that the company communicate its differentiation to its customers, otherwise these two advantages will not avail themselves. Initially Coca cola will need to adopt a focused differentiation approach, which means that they should selectively choose which markets will profit them the most and then target only those markets until such provisions are in place from where the company is able to expand its target base.go to link
The Concept Of Strategic Planning Marketing Essay
After which they should opt for a broad differentiation generic strategy. Coca-Cola has a strong brand name and brand portfolio. Business-Week and Inter brand, a branding consultancy, recognize Coca-Cola as one of the leading brands in their top global brands ranking in Analyzing the primary competitor and identifying their Strengths, Weaknesses, Opportunities, and Threats SWOT Analysis help determine target markets, marketing plan, and customer service, sales forecasting and sales planning. Examining the following will assist in the competitive analysis: Identify the level of rivalry among competing sellers in the industry Review strategies of companies to encourage customers to switch from a competitor Analyze ease of entry for new competitors Determine bargaining power for suppliers of key materials and components Determine bargaining power for buyers of the product SWOT Analysis represents the analysis of the following four things— STRENGTHS.
Distribution network: The Company has a strong and reliable distribution network. The network is formed on the basis of the time of consumption and the amount of sales yielded by a particular customer in one transaction. It has a distribution network consisting of a number of efficient salesmen, , retail outlets and distributors. The distribution fleet includes different modes of distribution, from tonne trucks to open-bay three wheelers that can navigate through narrow alleyways of Indian cities and trademarked tricycles and pushcarts.
Strong Brands: The products produced and marketed by the Company have a strong brand image.
People all around the world recognize the brands marketed by the Company. The red and white Coca-Cola is one of the very few things that are recognized by people all over the world.
Low Cost of Operations: The production, marketing and distribution systems are very efficient due to forward planning and maintenance of consistency of operations which minimizes wastage of both time and resources leads to lowering of costs. Low Export Levels: The brands produced by the company are brands produced worldwide thereby making the export levels very low. In India, there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola.
Large Domestic Markets: The domestic market for the products of the Company is very high as compared to any other soft drink. Coca-Cola India claims a 58 per cent share of the soft drinks market; this includes a 42 per cent share of the cola market. Other products account for 16 per cent market share, chiefly led by Limca. The company appointed 50, new outlets in the first two months of this year, as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3, new villages. Export Potential: The Company can come up with new products which are not manufactured abroad, like Maaza etc and export them to foreign nations.
It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market.