Running head: STRATEGIC MANAGEMENT PLAN FOR THE COCA COLA
COMPANY
Strategic Management for Coca Cola Company
Pamela Heaney
Rasmussen College
Author Note
This written assignment is being presented on April 9, 2017 to Professor Hopfensperger
for is Management Capstone Class.
1
STRATEGIC MANAGEMENT PLAN FOR THE COCA COLA COMPANY
2
A Brief History of the Organization
The Coca Cola Company was founded in 1886 and soon after it flourished. During that
time it became successful due to the fact it was the only one of its kind. Therefore, it had
minimal competition in this business environment. However, over time other soft drink
companies were founded, such as the Pepsi Company. With this company entering into the soft
drink market, it posed a lot of competition for the Coca Cola. Even with such stiff competition,
The Coca Cola Company has devised strategic plans to overcome the challenge of their
competition. In carrying out campaigns to promote Coca Cola products financial constraints have
posed various challenges. This company has however been able to overcome many obstacles and
this has resulted in the gradual growth in the company over many years.
Coca Cola’s Top Executives
Several top executives have been instrumental in the growth of this company. These
executives have brought much success to the company. Muhtar Kent who is the company’s chief
executive officer (CEO) and he has held this position since April 2009. Previously he was
President and Chief Executive Officer and earlier, President and Chief Operating Officer. James
Quincey is President and Chief Operating Officer (COO) of The Coca-Cola Company. “In this
role he has responsibility for all of the company's operating units worldwide” (Coca Cola, 2017).
Coca Cola’s Mission Statement
Coca Cola’s mission statement is “to refresh the world - in mind, body and spirit, to
inspire moments of optimism - through our brands and actions, and to create value and make a
difference everywhere we engage” (Jurevicius, 2013). “The Coca Cola Company is built upon
ethics they aim to lead by example and to learn from all experiences. “The company sets high
STRATEGIC MANAGEMENT PLAN FOR THE COCA COLA COMPANY
3
standards for all their employees at all levels and strive to consistently meet them. They also
have a sound business principles and practices that foster their strong, innovative and
collaborative culture, which is committed to ethical behavior, accountability and transparency”
(Governance & Ethics, 2916).
Areas of Ethical Concern in the Company
There have been several ethical concerns in the Coca Cola Company. Some of these
concerns include health and governance implications. Some of the health implications have been
identified in cases where the consumption of Coca Cola products has had adverse health
implications to consumers. The prices of Coca Cola products over time have also raised a
question of ethics in governance.
In 1999 Coca-Cola faced a discrimination lawsuit. African American employees sued
Coca-Cola for racial discrimination. The company was alleged that African Americans that
worked for the company had suffered due to discrimination in pay, promotions and performance
evaluations. This was later settled in 2000 and was the “largest settlement ever in a racial
discrimination case, the Coca-Cola Company agreed yesterday to pay more than $156 million to
resolve a federal lawsuit brought by black employees” (Winter, 2000).
In conclusion, Coca Cola’s strives to keep its leadership in the beverage market and its
mission statement is to provide high quality and convenient products at the same time ensuring
that ethics is observed. For the company to continue their success they need to utilize and adjust
to change. Ensuring that the executives and other company officials monitor the code of ethics
will help the company to remain on top.
STRATEGIC MANAGEMENT PLAN FOR THE COCA COLA COMPANY
References
Coca Cola Company (2017). Company Leaders. CocaCola.com. Retrieved on April 8, 2017.
From http://www.coca-colacompany.com/our-company/leadership
Jurevicius, O. (September 14, 2013). Mission statement of Coca Cola. Strategic Management
Insight. Retrieved on April 9, 2017 from
https://www.strategicmanagementinsight.com/mission-statements/coca-cola-missionstatement.html
Governance & Ethics. (September 20, 2016). The Coca Cola Company. Retrieved on April 9,
2017 from http://www.coca-colacompany.com/our-company/governanceethics/governance-ethics
Winter, G. (November 17, 2000). COCA-COLA Settles Racial Bias Case. NYTimes.com.
Retrieved on April 9, 2017 from http://www.nytimes.com/2000/11/17/business/cocacola-settles-racial-bias-case.html
4
Running head: HUMAN RESOURCE AND BUDGETING STRATEGIES
Human resource and budgeting strategies
Name
Instructor
Institutional Affiliation
Date
1
HUMAN RESOURCE AND BUDGETING STRATEGIES
2
HR Strategies
Goal choice
Krogger company deals with a variety of customers and there is need to ensure that every
customer is satisfied with the quality of products availed to them. Innovation is the strategic goal
that I would like the Krogger Company to accomplish (Mondy & Noe, 2008). Innovation would
enable the business organization to develop new products and new methods of producing them as
well as making their distributions. Additionally, innovation would allow the company to fill the
market gaps that exist in the delivery of goods and service in the industry within which it
operates.
Attract
The Krogger Company employees should be creative. Creativity is a trait that will enable
the employees to make new developments in the products offered by the company. Additionally,
creativity will ensure that the company remains competitive in its operations and better than its
competitors in different aspects. When employees are creative, they will have the ability to
develop new brands of products and make sure that customers enjoy them (Noe, 2016).
Employees also need to be committed to their work so that they cannot give up on their activities
until they achieve the goals of the organization. Commitment is the driving force towards
success in the organization. The employees should also be perseverant in their activities so that
they can reach their goals irrespective of the difficulties that they will face. There will be the
competitors but the employees need to believe that they have the ability of being the best and
remaining the best in the industry.
Hiring the best employees
HUMAN RESOURCE AND BUDGETING STRATEGIES
3
The company will have to hire the best employees who can carry out different job tasks
and remain efficient. In order to attract the right and qualified employees, the company will use
two strategies. The first strategy will ensure that the employees share a similar passion to that of
the company. They should be people who have passion in innovations and are willing to go an
extra mile to become successful in their innovations. The second strategy will be based on
refining the company’s purpose (In Ehnert, In Harry & In Zink, 2014). When the purpose is well
known to the public, the right people will apply for jobs. The two strategies fit the business
organization as it is determined to satisfy the needs of consumers through quality products. On
the other hand, the strategies are important to meeting the organizational goal as it would require
passion and purpose to achieve it. Through the two strategies of hiring the right employees, it
will be possible to have people with different abilities, strengths and passions. This diversity is
important in achieving innovation goal of the company as diversity makes employees innovative.
Develop
Employees will be trained face to face to ensure that they have a platform of clarifying
everything. The reason behind face to face training is due to the fact that maintaining rapport is
important in making the employees understand the purpose of the business. The employees will
also require to be taken through the different company products so that they can easily develop
on them through their innovative minds. Face to face training will give the employees a chance
of getting to know their workmates which will enable them to work as teams (Mondy & Noe,
2008). Employees should be trained on the goals and objectives of the company and the different
job tasks that they will be expected to carry out. Understanding the goals and objectives of an
organization is important to all employees as it gives them a chance of working towards them.
Additionally, knowing the expectations of the company on one’s duties makes it possible to have
HUMAN RESOURCE AND BUDGETING STRATEGIES
4
a controlled and easy to manage human resource. The company’s existing employees should be
trained on competition and organizational culture. Competition will enable them to work extra
hard as they will understand the potential threats and organizational culture will enable them to
create an organizational environment that will facilitate teamwork and embrace diversity. The
training program will be done on the job so that there is incorporation of changes in the way
employees work as they carry out their day to day activities.
Retention
Creation of opportunities in which employees can develop their careers will give the
employees a chance to grow their skills. The company will also provide the employees with good
salaries. The two methods will be effective in retaining employees in the organization. Creation
of career development opportunities is advantageous as the company will benefit from increased
productivity. On the other hand, the strategy might be disadvantageous where employees quit
their jobs and get hired in other organizations (Noe, 2016). Providing employees with good
salaries is advantageous as it will create a good reputation for the company. On the other hand, it
will not be possible for the company to lower their salaries during the tough times in the business
cycle.
Budget Estimates
Specific goal
The current business world requires that businesses are innovative to avoid being phased
out. There are improvements that should be done on different products offered by a company.
Krogger Company understands the need of innovation being in a competitive industry.
Innovation will enable the company to make its products better than those of the competitors
HUMAN RESOURCE AND BUDGETING STRATEGIES
5
through methods such as branding, blending and packaging (Pride, Hughes & Kapoor, 2013).
Such methods will attract more customers who will be willing to consume their products from
the Krogger Company. Innovation will also enable the company to invent new methods of
producing and distributing their products.
Operating budget
Implementation of this strategic goal will require funding. For innovation to continue
supporting the organization there will be need to use a given amount of its capital (Dlabay &
Burrow, 2007). Some of the costs that will be incurred in making the goal work for the
organization will include
There will be cost associated with the process.
Cost category
Subcategories
Costs description
Approximate
d amount in
US Dollar
General
operation- 1. Research and 1.costs involved in purchasing the
these are costs that the
development
research materials over the given
company will incur so
cost
duration
300,000
that it can decide on 2. Travelling
2.
the how to undertake
researchers travelling to conduct
innovation
costs
3. Inventory
cost
involves
the
costs
of
the
their research
3. There will be need to purchase
additional
machines
and
other
HUMAN RESOURCE AND BUDGETING STRATEGIES
6
materials that will facilitate the
process of innovation.
Human resource cost- 1. Hiring of new
this is cost that the
employees
company will incur 2. Training
through the human
new
resource
employees
team
that
1. The recruitment and
selection
the
process
will need financing
2. New
employees
have to be taken
will be involved in the 3. Retention of
through a training
innovation process
program
employees
3. After
150,000
training
employees
the
company will strive
to retain them in the
organization
Marketing cost- after
1. Publicizin
development of new
g
products, the public
products
has to be made aware
2. Promotio
of their existence so
that they can buy
ns
the
1. There will be need to make the
public know that the company
has new products
2. There will be need to give free
products to customers so that
they will like the products
them
Miscellaneous
200,000
Some other costs Additional
costs
on
different
HUMAN RESOURCE AND BUDGETING STRATEGIES
expenses-extra
costs that
will
that will be associated associated
with the innovation the
process
7
be categories of costs
with
50,000
innovation
process
Capital budget
Some of the assets in the capital budget will serve the purpose in the long term. Some of
the assets will include machines used in the marketing process and the data and information
acquired through the research activities. The machines used in the marketing process will be
used in the future by the company in performing marketing in the future (Spraakman, 2015).
Additionally, the machines could also be used in other activities such as events by held by the
company. Additionally, data acquired through the process of research will be used in the future
whereby it will assist the company in making production decisions. The information will also
assist the company in performing its marketing activity as it will have adequate information
related to the different market groups. Through the two assets, the company will save on the cost
of acquiring them later in their process of performing activities.
HUMAN RESOURCE AND BUDGETING STRATEGIES
8
HUMAN RESOURCE AND BUDGETING STRATEGIES
References
Mondy, R. W., & Noe, R. M. (2008). Human resource management. Harlow: Pearson Prentice
Hall.
Noe, R. A. (2016). Fundamentals of human resource management.
In Ehnert, I., In Harry, W., & In Zink, K. J. (2014). Sustainability and human resource
management: Developing sustainable business organizations.
Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2013). Foundations of business. Mason, OH:
South-Western/Cengage Learning.
Dlabay, L. R., & Burrow, J. (2007). Business finance. Mason, Ohio: South Western.
Spraakman, G. (2015). Management accounting at the Hudson's Bay Company: From quill pen
to digitization.
9
Running head: BUDGET ESTIMATES
1
Coca Cola-Budget Estimates
Pamela Heaney
Rasmussen College
Author Note
This written assignment is being presented on April 23, 2017 to Professor Hopfensperger
Management Capstone Class.
BUDGET ESTIMATES
2
Introduction
Every organization has to set goals and objectives that it aims to achieve within a
particular time frame. Having these goals are paramount for a company since they help
organizations in mapping their way forward. Goals help the organization increase profits and
sales. Coca-Cola seeks to bring the world a selection of beverage brands that are healthy and will
satisfy people's desires and needs. The company also aims to nurture a winning network of
partners and to build mutual loyalty by branching out into other healthier products. Some
improvements should be made for the company to offer different products. That is where a
budget comes in play.
Coca-Cola uses various types of budgets to keep the business operating. These budgets
help the company allocate the money they have received and spent or expect to receive and
spend. Types of budgets used at Coca Cola are as followed: Master Budget, Sales budget,
Operations Budget, Production Budget, and the Direct Material Purchases Budget. They also
budget for overhead cost and sales/administrative Cost.
The operation budget is part of the company’s master budget. “The master budget
includes budgets for sales, production, direct materials, direct labor, manufacturing overhead,
selling and administrative expenses, capital acquisitions, and cash receipts and disbursements, as
well as a budgeted income statement and a budgeted balance sheet” (Jiambalvo, 2016). With the
operation budget which is a detailed plan that estimates how much income Coca-Cola expects to
make and what it thinks the business expenses will be in, typically within a year. Companies
usually use separate operating budgets to create plans for each area of the operation. Examples of
commonly used operating budgets are sales, production or manufacturing, labor, overhead, and
administration.
BUDGET ESTIMATES
3
Coca-Cola’s Operation Budget
Cost Categories
Sub-categories
General
Operation- cost
to innovate new
products.
1.) Research/Development 1.) Cost involved
2.) Travelling Cost
in purchasing the
3.) Inventory Cost
research
materials over the
given duration.
2.) Involves the
costs of the
400,000
researchers
travelling to
conduct their
research
3.) Purchase
additional
machines and
other materials
that will facilitate
the process of
innovation.
1.Hiring of new employees
1.) Recruitment
2.Training the new employees and selection
3.Retention of employees
process will need
financing
150,000
2.) New
employee
training program
3.)Striving to
retain employees
1.)Publicizing
Advertising
200,000
2.)Promotions
Coupons.
Human Resource
Marketing/Sales
after product
development.
Miscellaneous
All other costs that will be
associated with the innovation
of new products.
Cost Description
In sub-categories
cost. Different
areas of
operations of the
company.
Approximate
Expense
300,000
Capital Budget
Capital budgeting" is the process of determining which long-term capital investments
should be chosen by the firm during a particular period, and thus included in the capital budget”
BUDGET ESTIMATES
4
(Peavler, 2017). Included in the capital budget are the buildings and machinery. Coca-Cola has
many plants around the globe. Having these plants in various parts of the world is important as it
helps in making their products attractive. These plants are assets that can be used in achieving
new product production. Why? These plants are the company’s long-term assets. In their plants,
the company has machinery that not only manufactures but also packs the Coca-Cola products.
The machinery is crucial and will help in the achievement of Coca Cola’s objectives.
In conclusion, with this strategic plan, there is no doubt that the Coca-Cola Company will
be able to achieve its set goals. Most importantly, the company will be able to control over 95%
of the market share. Having the operational budget and the capital budget are in line with the
organization’s financial limits and are also vital to the organization's success.
BUDGET ESTIMATES
5
References
Jiambalvo, J. (2016). Managerial Accounting, 6th Edition. [VitalSource Bookshelf Online].
Retrieved on September 12, 2016 from
https://ambassadored.vitalsource.com/#/books/9781119227892/
Peavler, R. (February 01, 2017). Capital Budgeting and Its Importance in Business.
Thebalance.com. Retrieved on April 23, 2017 from https://www.thebalance.com/capitalbudgeting-and-its-importance-in-business-392912#
Running head: HR STRATEGIES
1
Introduction
Pamela Heaney
Rasmussen College
Author Note
This written assignment is being presented on April 23, 2017 to Professor Hopfensperger
Management Capstone Class.
HR STRATEGIES
2
Introduction
Every organization has to set goals and objectives that it aims to achieve within a
particular time frame. Having these goals are paramount for a company since they help
organizations in mapping their way forward. Goals help the organization increase profits and
sales. Several measures need to be put into consideration in the achievement of these set goals.
The Coca-Cola Company has set several goals and is using strategic implementation plans to
achieve these goals.
Goal Choices
Strategic business objectives are goals and are the most critical to the current and future
health of the soft drink giant. Coca Cola’s three strategic goals are to use all their assets, brands,
financial strength, unrivaled distribution system, global reach, and a strong commitment to their
management and associates worldwide to achieve long-term sustainable growth. By sustainable
growth, this includes the people. They want to be a great place to work where people are inspired
to be the best they can be without discrimination. The company seeks to bring the world a
portfolio of beverage brands that are healthy and will satisfy people's desires and needs. The
company also aims to nurture a winning network of partners and to build mutual loyalty by
branching out into other healthier products.
Attracting Employees
Every employee has a crucial role in ensuring company goals are achieved. Coca Cola
needs to attract employees that would commit in their duties. Coca-Cola controls over 95% of the
market share, and this means that employees working for the company are dedicated to making
the business successful. Ensuring that employees have the right public relations skills is also
HR STRATEGIES
3
paramount. This will guarantee that employees can relate well with each other, customers and other
people outside of the company.
In achieving this organizational goal, integrity for the company is a must. Coca-Cola has
always stood for quality and integrity with a commitment to serve customers and communities.
In the hiring process, some factors should be considered to ensure that only qualified employees
are hired. Looking at the potential hires qualifications, work experience, and history is a good
indicator when hiring an employee. Ensuring that the goals of the company, as well as the strategic
plan for the business, are communicated during the hiring process is a must. This will indicate that
employees are ready for the task ahead.
Diversity is key during the hiring process “The company is committed to equality and
diversity in all aspects of the workplace” (Singh, 2014). A diverse workforce can provide real
benefits to a company besides just satisfying legal compliance and good faith efforts. In fact, as
Coca Cola’s markets expand globally being able to understand and reach out to the individual
needs of people from other cultures and regions will be vital. A multicultural, talented, and
trained employee base can give the company dominant advantage.
Develop/Training
Training employees present an opportunity to expand their knowledge base. Having
continuous training in the workforce is very vital for the success of the Coca-Cola. Training
employees in online platforms can be beneficial for yearly training since training can be done to a
large group at the same time. New hires would benefit better in a classroom setting since here they
can meet their supervisors and understand what they would expect. This will ensure relations are
improved and create room for interaction and collaboration among new employees.
Retaining Employees
HR STRATEGIES
4
Hiring employees is just the beginning in creating a strong workforce. The next is for
Coca-Cola to keep them. Excessive employee turnover will cost the organization in time and
productivity. These tactics are beneficial for the company to retain their employees. For employees
to stay, the Coca-Cola could introduce employee packages that are aimed at rewarding employees
on merit. Ensuring that employees are recognized for work well done is significant. Creating a
working environment that is both friendly and cooperative is also beneficial in retaining employees.
This could, however, prove expensive since resources are required to implement this activity. With
having a reward system in place can help improve employee morale and ultimately increasing
productivity and better profit for the company.
In conclusion, Coca-Cola has been around for many generations, and if it did not have
goals, it would not be so successful. The company’s employees are a big key to their continuous
achievements. In the hiring and attracting new hires, as well as retaining, the company needs to
make employees aware they are partners in making the success of the business a reality by
investing in their work and helping them achieve career goals.
HR STRATEGIES
5
References
Hays, E. (August 16, 2015). Coca-Cola: We stand for Quality, Integrity. USToday.com.
Retrieved on April 21, 2017 from
https://www.usatoday.com/story/opinion/2015/08/16/coca-cola-company-ed-hayseditorials-debates/31818829/
Singh, J. (November 7, 2014). How Coca-Cola Hires - It's All About Diversity. Linked.com.
Retrieved on April 21, 2017 from https://www.linkedin.com/pulse/2014110715142510432781-how-coca-cola-hires-it-s-all-about-diversity
Running head: BUDGET ESTIMATES
1
Coca Cola-Budget Estimates
Pamela Heaney
Rasmussen College
Author Note
This written assignment is being presented on April 23, 2017 to Professor Hopfensperger
Management Capstone Class.
BUDGET ESTIMATES
2
Introduction
Every organization has to set goals and objectives that it aims to achieve within a
particular time frame. Having these goals are paramount for a company since they help
organizations in mapping their way forward. Goals help the organization increase profits and
sales. Coca-Cola seeks to bring the world a selection of beverage brands that are healthy and will
satisfy people's desires and needs. The company also aims to nurture a winning network of
partners and to build mutual loyalty by branching out into other healthier products. Some
improvements should be made for the company to offer different products. That is where a
budget comes in play.
Coca-Cola uses various types of budgets to keep the business operating. These budgets
help the company allocate the money they have received and spent or expect to receive and
spend. Types of budgets used at Coca Cola are as followed: Master Budget, Sales budget,
Operations Budget, Production Budget, and the Direct Material Purchases Budget. They also
budget for overhead cost and sales/administrative Cost.
The operation budget is part of the company’s master budget. “The master budget
includes budgets for sales, production, direct materials, direct labor, manufacturing overhead,
selling and administrative expenses, capital acquisitions, and cash receipts and disbursements, as
well as a budgeted income statement and a budgeted balance sheet” (Jiambalvo, 2016). With the
operation budget which is a detailed plan that estimates how much income Coca-Cola expects to
make and what it thinks the business expenses will be in, typically within a year. Companies
usually use separate operating budgets to create plans for each area of the operation. Examples of
commonly used operating budgets are sales, production or manufacturing, labor, overhead, and
administration.
BUDGET ESTIMATES
3
Coca-Cola’s Operation Budget
Cost Categories
Sub-categories
General
Operation- cost
to innovate new
products.
1.) Research/Development 1.) Cost involved
2.) Travelling Cost
in purchasing the
3.) Inventory Cost
research
materials over the
given duration.
2.) Involves the
costs of the
400,000
researchers
travelling to
conduct their
research
3.) Purchase
additional
machines and
other materials
that will facilitate
the process of
innovation.
1.Hiring of new employees
1.) Recruitment
2.Training the new employees and selection
3.Retention of employees
process will need
financing
150,000
2.) New
employee
training program
3.)Striving to
retain employees
1.)Publicizing
Advertising
200,000
2.)Promotions
Coupons.
Human Resource
Marketing/Sales
after product
development.
Miscellaneous
All other costs that will be
associated with the innovation
of new products.
Cost Description
In sub-categories
cost. Different
areas of
operations of the
company.
Approximate
Expense
300,000
Capital Budget
Capital budgeting" is the process of determining which long-term capital investments
should be chosen by the firm during a particular period, and thus included in the capital budget”
BUDGET ESTIMATES
4
(Peavler, 2017). Included in the capital budget are the buildings and machinery. Coca-Cola has
many plants around the globe. Having these plants in various parts of the world is important as it
helps in making their products attractive. These plants are assets that can be used in achieving
new product production. Why? These plants are the company’s long-term assets. In their plants,
the company has machinery that not only manufactures but also packs the Coca-Cola products.
The machinery is crucial and will help in the achievement of Coca Cola’s objectives.
In conclusion, with this strategic plan, there is no doubt that the Coca-Cola Company will
be able to achieve its set goals. Most importantly, the company will be able to control over 95%
of the market share. Having the operational budget and the capital budget are in line with the
organization’s financial limits and are also vital to the organization's success.
BUDGET ESTIMATES
5
References
Jiambalvo, J. (2016). Managerial Accounting, 6th Edition. [VitalSource Bookshelf Online].
Retrieved on September 12, 2016 from
https://ambassadored.vitalsource.com/#/books/9781119227892/
Peavler, R. (February 01, 2017). Capital Budgeting and Its Importance in Business.
Thebalance.com. Retrieved on April 23, 2017 from https://www.thebalance.com/capitalbudgeting-and-its-importance-in-business-392912#
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