1
Assumption and Contingency Planning
Stephanie Kimber
MBA- 705
October 5, 2017
2
Strategic assumptions
The Coca-Cola Company holds the greatest percentage of market share in the global
beverage enterprise. This important aspect brings the premise of the Zero Malt Project occupying
a good percentage of market shares since the Company has already made a significant move to
the marketing department. Apart from this advantage, the already available market makes the
project one of the best tools in market segmentation strategy and thus capturing all consumers
and their preferences. Therefore more customers are expected to try the product during the
launching of the project and thus assuring a pool of consumers at the onset of the project.
Coca-cola being a global company has an excellent level of resources and material
power, and therefore the implementation of the project and success of each project phase is
expected to take place without any failure. The revenues generated from the selling of Zero Malt
products are expected to be calculated on a quarterly basis. After carefully calculating the Net
Present Value the cash outflows will provide a positive value and thus bringing profit after every
sale. Apart from this aspect the company aims at recruiting more IT experts, risk managers, and
communication experts. These vital aspects in the project management and implementation will
result in a continuous development of the project within the stipulated budget and time.
The project is expected to be cost friendly and is expected to use a budget-friendly
amount of capital which will be three million dollars in comparison to the other past projects
which had lead to spending above the budget. This will be made possible by the availability of a
very experienced labor force and project analyst who has worked with the company since its
beginning.
3
Stakeholders are usually the key to implementation of any given project in an
organization and with the already evident benefit from the project the stakeholders are expected
to support it until its completion. This assumption will result in the easy flow of the project
stages and better results of the project implementation. Hence the level of risks and potential
threats will be easily managed, and in case of a negative outcome, the stakeholders will follow
the already developed strategic plan.
Factors that may affect the assumptions
The existence of competitors who have similar ideas and products is one of the major
potential threats that could lead to failure of the project implementation. Such competition may
hinder the acquisition of a good market share and thus bringing loss to the company. To reduce
such a threat, the company will have to produce a consumer-friendly product regarding health,
beauty, and satisfaction (Mitroff & Emshoff, 1979). This may not be a threat to the project due
to the actual testimonies from customers who have been satisfied by the Coca-cola products.
Time is another factor that could affect the success of implementing the project. Most of
the resources and assumptions made are constructed following the project plan. Failure to
implement the project within the stipulated time and resources will lead to failure in the Net
present value positive assumption which provides an exact acquisition of profit after a given
period. Therefore time management will be a very vital aspect of this project; this will be
ensured by assigning tasks accordingly, and ensuring the daily set goals and objectives are
succeeded each day.
The project is aimed at being the most cost-friendly, but due to the globalization aspect
and market segmentation, the budgeted resources may bring more cost and thus making the
4
assumption of cost-friendly less accurate. Even though this factor may not affect the company's
capital capability due to its economic power, it may lead to a sunk cost by the end of the entire
project. The occurrence of such a scenario could be solved by consulting the view of
stakeholders and adding extra cash to help in risk and threat management.
Cross-cultural factors
Ethnocentrism is an aspect which may affect the development of the project at a given
point during the implementation process. Most Coca-cola products are sold worldwide, and
therefore the "Zero Malt" products will require a global marketing strategy. The language barrier
will pose as one of the major problems that may affect the growth of the enterprise within
different cultural contexts. This will call for employment of a workforce within the environment
that a business is located. Such aspect will boost the understanding of the products efficiently
and provide a good relationship between the company and the customer. Apart from this aspect,
there could exist other cross-cultural factors that could bring some positive or adverse effects to
the project and whereby they may include significant context versus low context, nonverbal
differences, and the power differences.
Nonverbal communication entails the use of gestures. This kind of communication is
usually different from one culture to another. Different understanding of gestures may result in
confusion between the clients and the marketing force. The company should train employees
following the culture of the environment they intend to set up a new branch. These factors may
affect the growth and development of the overall project idea in a negative manner if the risks
management does not set up a strategy to curb them in case they arise.
Economic Factors
5
Among the economic factors that may affect the enterprise environment may include
consumer confidence and employment. Consumers with high confidence usually tend to spend
more money than those with little confidence. Since the project is embarking on new products,
the confidence of the clients may be low and thus affect the economic benefit and number of
customers who purchase the products (Hansen & Wernerfelt, 1989). As such boosting the client's
confidence will help to bring more profit and attract more clients.
Employment may be another economic factor that could affect the business environment.
When there are high levels of unemployment consumers, tend to spend less and vice versa. Such
an aspect may lead to the slow realization of the business goals and objectives which is a
negative aspect of any enterprise.
Another economic factor that may affect the business environment is the inflation. This
issue is elaborated by the rate at which prices increase within the economic context. The rising
cost forces businesses to raise prices on their products and services to keep up with the inflation
and get some economic benefit. This aspect may affect the new product and cause consumers to
make little purchases and thus rendering the venture unprofitable.
Geopolitical factors
The geopolitical factors may affect the enterprise on various aspects depending on the
area to which the investment will take place. This entails internationally or locally. Most of these
factors may include the foreign policy, climate, topography, the resources and the applied
science of the region being measured (de Vivero, Mateos & del Corral, 2009). The most vital
factor in this aspect may be the foreign policy which may have certain terms of implementing the
6
whole business idea. Various countries have policies that limit an enterprise such as high-interest
rates and legal measures that result in high cost.
How to ensure the project operates in a legally and ethically compliant environment
Determining the project compliance with the rules and regulations will be determined by
the policies which govern the businesses and projects of the geographical location of the
enterprise. The rules and regulations include products permit, business permit, research and the
project implementation practice. Apart from these aspects, the project will also require a health
permit from the Institute of drugs, foods, and research to determine the effects of this product on
human health. The project will comply with the best practices outlined in the Project
Management Institute.
The compliance of the project will follow some pillars which include compliance
documentation, compliance counsel, compliance risk, compliance audit and lastly the
compliance responsibilities. These pillars will lead to a lawfully and organizational recognized
project. The pillars will follow a framework that will indicate every phase of the project and the
strategic management plan in place in case the risks or threats occur.
7
This observance evaluation course will take steps as a gated review. Once operational,
the tools will permit the interactive and interactive management of the unlike components and
phases of the conformity. The compliance inspection will submit an official certificate that
authorizes the project conclusion. During this stage, if there will be no rules that have been
complied with, they will be documented and observed later (Küster, Ryndina & Gall, 2007).
Plans for incorporating stakeholders and customers in the plan
Stakeholders will hold a great part in the entire process of implementing the project.
Their vast knowledge and material support will help to manage risks in case they occur and
provide support on the entire business plan. The stakeholders will be involved in the process of
8
key decision-making during the project and which will not be limited to providing views
regarding the project implementation process. Secondly, their expectations will be met to bring a
clear picture their role in the project implementation process. Thirdly the company will create
buy-in ownership to make the stakeholders part of the project. Fourthly the stakeholder's
influence will be used to the advantage of the project, for example, their material support. Lastly,
stakeholders will be well communicated to ensure the objectives and decisions of the project are
made with their consent.
Customers are the most vital tool in the entire project success as they determine the
growth and profit that the project will yield after the set period. The customer's preference and
choice will be given priority during the project implementation. Taking customers views and
opinions during the development of the products will help to come up with a client-friendly
product. Apart from this vital requirement, the customer's views regarding the products will help
to determine the success of the project and the level of customer's satisfaction.
Role of corporate social responsibility in the project
Corporate social responsibility will help to attract more customers and develop the best
customer experience and satisfaction. The project will entail a sunk cost entitled to providing
education to the needy children within the business surrounding the community. Such an act will
not only bring economic benefit to the society, but it will create a good name for the products of
the project and thus promote its growth (McWilliams, 2000). Apart from this aspect, the aim of
maintaining a good relationship with the local community will help to accumulate more
customers and help in the area of cross-cultural factors. A close relationship between the project
9
implementation plan and the local community will ensure the product is widely communicated
and thus reducing the cost of marketing.
10
References
de Vivero, J. L. S., Mateos, J. C. R., & del Corral, D. F. (2009). Geopolitical factors of maritime
policies and marine spatial planning: State, regions, and geographical planning scope.
Marine Policy, 33(4), 624-634.
Hansen, G. S., & Wernerfelt, B. (1989). Determinants of firm performance: The relative
importance of economic and organizational factors. Strategic management journal, 10(5),
399-411.
Küster, J., Ryndina, K., & Gall, H. (2007). Generation of business process models for object life
cycle compliance. Business Process Management, 165-181.
McWilliams, A. (2000). Corporate social responsibility. Wiley Encyclopedia of Management.
Mitroff, I. I., & Emshoff, J. R. (1979). On strategic assumption-making: A dialectical approach
to policy and planning. Academy of Management Review, 4(1), 1-12.
Zero Malt Project Analysis
Stephanie Kimber
October 1, 2017
2
Zero Malt Project Analysis
Introduction
Coca-Cola is one of the popular companies in the world based on the number of
companies it operates in and the annual revenues it enjoys from its operation in more than 200
countries across the world (Jakeman et al., 2014). The company specializes in the production of
beverage drinks which has seen it control a significant market share of the total global beverage
market and consequently become one of the biggest players in the soft drinks industry. In the
recent years, the company has faced stiff competition from other rival companies which are so
much to reduce the market dominance of Coca-Cola Company (Karnani, 2014). It is the primary
objective of every firm to maximize profit subject to cost minimization and to also enhance the
firm’s reputation by enhancing customers’ satisfaction. The success of a firm to achieve such
objectives is highly influenced by its innovation and marketing strategies (Cross, Belich, &
Rudelius, 2015). Additionally, in a more competitive industry, a firm needs to show the
resilience and aggressiveness in ensuring that it endures high market competition by generating
new ideas that can help foster organizational change. This paper analyzes some of the recent
products introduced in the market by Coca-Cola and whether the revenues generated from these
products justifies the need for the firm to continue producing them.
Market Strategies
Coca-Cola Company has been in the past implementing numerous ideas and marketing
strategies to help increase its performance. Due to dynamics being witnessed in various major
markets around the world and annual changes in consumer preference globally, the firm has
opted to undertake product diversification as well as market segmentation. Product
diversification refers to the process in which a firm produces new products which might not
3
necessarily be related to the main products that the firm opted to produce during its
establishment (Oh, Sohl, & Rugman, 2015). On the other hand, market segmentation refers to the
process in which a firm segment a market into different categories based on the market demand
of the product in each group and consumer preference towards the products sold. With product
diversification, a firm can always increase its operation in producing other products which it
thinks are needed by consumers so as to complement the revenues it enjoys from the main
products its produces. On the other hand, market segmentation enables a firm to charge prices for
its products sold different based on the market features. For instance, Coca-Cola as opted to
reconsider lowering the price it charges some of its beverage products being sold in African
Market and Latin America since most of the consumers in these two markets are mostly poor
families (Akhter et al., 2016). On the other hand, the same products are being charged relatively
higher in North America and Europe due to the fact that these continents are more developed and
therefore its citizens are financially stable.
The Coca-Cola “Zero Malt” Project
Every year, the Coca-Cola Company launches different new products to help encounter
the high business completion and meet the ever-changing taste and preference of consumers
around the world. In 2014, the company launched over 450 new products (Elmore, 2014).
However, the recent launch of these new products is what has enabled the firm to substantially
increase its market dominance in beverage drinks production. The production of these new
products has proven to be a hit in the market based on the market response received from
customers from different countries across the globe. The firm has however failed to capitalize on
revelers who desire to have non-alcoholic drinks which can be used as substitute to alcohol
drinks when revelers are having some fun in various social joints and clubs. The number of
4
individuals who don’t drink but likes to hang around with their drinking friends is significantly
high and there is need for the firm to consider serving such group of customers. The Zero Malt
project is designed to produce non-alcoholic drinks which such population can consume. The
main reason why the above project should be implemented is because there is high number of
people across the globe who would wish to consume some non-alcoholic drinks which are close
substitute of alcoholic drinks. Exploiting such an opportunity would enable Coca-Cola Company
to enjoy high revenue from production and marketing of these products. The following table
provides a discrete budget proposal that is required for the implementation of the “Zero Malt”
project.
Zero Malt Proposed Budget
Amount ($ ‘000)
Item
Total Revenue………………………………………………….3, 000,000
Expenses
Raw Material…………………………………………………………….250,000
Equipment………………………………………………………………..300,000
Supplies…………………………………………………………………..200,000
Rent and Utilities…………………………………………………………150,000
Administrative Expenses…………………………………………………150,000
Salaries and Wages……………………………………………………….450,000
Total Expenses………………………………………………….1, 500,000
Project Cost and Source of Capital
In the past, the core responsibility of any project manager was to ensure that the project is
completed within the time stipulated and that the project implementation is within the outlined
5
budget constraints. In recent years, the scope and responsibilities expected from a project
manage is becoming increasingly broader (Verzuh, 2015). This is because as most organizations
tend to become increasingly project based today, project managers are forced to be financially
savvy. Hence, projects are not only expected to be on time and also on budget, but must also
contribute positively towards enhancing shareholder’s value and also promoting the financial
success of the firm in the long-run (Mir & Pinnington, 2014). Such development therefore
makes financial factor to be a key pillar on which successful project implementation is built. In
order to generate enough capital to help in financing the first two phases of production of the
Zero Malt drinks, this paper proposes that the shareholders be required to invest additional
financial capital into the company as shares. Internal financial capital from the company’s
shareholders is preferred to external borrowing from commercial banks due to the fact that it is
cheap and comes with limited conditions as opposed to commercial loans. Therefore, the initial
project cost of $1.5 billion required for successful implementation of this project will be
generated from the company’s shareholders.
Expected Revenue and Cash Flows
The revenues generated from the sales of Zero Malt products are expected to be
computed on quarterly basis. Hence, for the next two years on which the company will be
analyzing the annual profits realized form Zero Malt products, a total of eight financial
statements will be produced. The following figures are the expected cash flows from the sale of
Zero Malt products across the globe for the next two years after successful implementation of the
project;
Time
1st Q
2nd Q
3rd Q
4th Q
5th Q
6th Q
Rev.(‘$000)
3,000
4,500
6,000
8,000
9,000
11,000
7th Q
8th Q
12, 000 14,000
6
Expen(‘$000) 1,500
C.flow($’000)
1,500
2,100
2,4000
2,800
3,2000
4,000
4,000
3,000
2,600
2,000
2,000
6,000
8,400
10,000
12,000
Calculation of NPV To Assess the Viability of The Above Project
The Net Present Value measures the difference between present value of expected cash
inflows and the present value of cash outflows. NPV is used in capital budgeting to help
determine the profitability of a given project if implemented (Asquith & Weiss, 2016). A
positive NPV is an indication that the projected earnings from a given investment exceed the
anticipated costs and therefore the project/investment should be undertaken.
The Net Present Value
NPV= Co+ C1/(1+r)^1+C2+(1+r)^2+C3(1+r)^3+………………Cn(1+r)^n
Where C= Cash flow
R=rate of return on capital (10%)
N= Time period for each cash flow
NPV= -1,500+
1,500(1+0.10)^1+2,400(1+0.10)^2+3,200(1+0.10)^3+4,000(1+0.10)^4+6,00(1+0.10)^5+8,400(1
+0.10)^6+10,000(1+0.10)^7+12,000(1+0.10)
NPV=-1,500+1650+2904+4259.2+5856+9663.06+14881.11+19487.17+25723.06
NPV=82924
Hence, the project should be implemented since its NPV is positive meaning that the project will
generate positive profits if implemented.
An assessment of Assets and Liabilities
According to the 2015 financial report released by Coca-Cola Company, the company
recorded a positive growth in revenues by almost 2 % compared to the previous year. This is an
7
indication of the continued market dominance and unquestionable loyalty of its customers who
are satisfied by the quality of products produced by the company. In the 2015, financial report,
the company had a total of $90 billion dollars as its assets with a corresponding $28 billion as
liability (://coca-colahellenic.com). This gives the company a positive debt to asset ratio hence
indicating that the Company can successfully repay the capital it owes its creditors without
facing any significant decrease in its operations.
In 2014, the company had $92 billion as its asset and $ 19 billion as long term debt thus
showing a relative small decrease in its asset value and an increase in liabilities in 2015.
However, from the net income posted in its income statement report, it is evident that the firm
decision to increase its operations in other new markets and the continued desire to always
develop new products may have influenced such decrease and increase in asset and liability
respectively. However, with the implementation of the Zero Malt project, the firm will able to
recover back the initial invested by the second year of operation that indicating that this
particular project has a short payback period and should therefore be implemented.
8
References
Akhter, N., Rafique, A., Rafiq, I., Bano, M., & Usman, M. (2016). Organization Structure and
Firm Performance in Financial Development for Perspective in Coca Cola Beverages in
Pakistan. International Review of Management and Business Research, 5(2), 494.
Asquith, P., & Weiss, L. A. (2016). The Time Value of Money: Discounting and Net Present
Values. Lessons in Corporate Finance: A Case Studies Approach to Financial Tools,
Financial Policies, and Valuation, 287-302.
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing
Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Elmore, B. J. (2014). Citizen Coke: The Making of Coca-Cola Capitalism. WW Norton &
Company.
https://coca-colahellenic.com/media/.../coca-cola-hbc_2015-integrated-annual-report.pdf
Jakeman, B., Lim, S., Porcini, M., Béhar, Y., Malone, M., & Murphy-Reinhertz, N. (2014). U.S.
Patent No. D716,093. Washington, DC: U.S. Patent and Trademark Office.
Karnani, A. (2014). Corporate social responsibility does not avert the tragedy of the commons.
Case study: Coca-Cola India. Economics, Management and Financial Markets, 9(3), 11.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Oh, C. H., Sohl, T., & Rugman, A. M. (2015). Regional and product diversification and the
performance of retail multinationals. Journal of International Management, 21(3), 220234.
9
Verzuh, E. (2015). The fast forward MBA in project management. John Wiley & Sons.
1
Stephanie Kimber
Company and Key Personnel
Institution
September 19, 2017
PROJECT IMPLEMENTATION
2
Project Milestone Three
The project aims to deliver support to the strategic leadership of the Coca-Cola Company
in the global scale regarding its products while offering quality assurance. Initiation of the concept
would guarantee the full reach of the company's products at considerable costs while allowing the
organization to retain its global influence. The concept also acknowledges the quality of the
products and the need to maintain relevance in the market. Regarding the implementation plan for
the idea, the project for the company focuses on the application in the global setup. Nonetheless,
the structuring and planning may contain challenges that prevent the successful running of the
project to fruition. That said the paper provides how the concept fits within the company's core
competencies, the corporate culture suitable for the project success, roles and responsibilities of
the implementation team, and the contingency plan should the team require modification.
Core Competencies
The concept aims to be influential globally while correlating with existing relationships
and, hence, the strong brand name and the extensive network of bottlers and distributors for the
company will allow for the same. Likewise, the organization's adequate relationship with its
dealers creates an ideal platform to establish a differentiation strategy. Similarly, the company's
general relationships will ensure the project involves the collaboration of teams to improve
performance through a systematic removal of waste and reduction of variation. Further, the
company's divisional structure will allow for proper reactions to uncertain environments while
enhancing some level of stability. The multi visional structure will allow the project manager to
handle daily operations while following long-term planning. Moreover, the company includes a
wide array of suppliers. Thus, establishing contractual agreements with those who have access to
PROJECT IMPLEMENTATION
3
real-time data such as demand trends and expectations of future volumes for the products will
ensure the project can set an adequate balance between specific needs and their supply.
Corporate Culture
The business culture involves an inclusive workplace culture (Bell, 2013). The culture
forms an integral part of the success of the project. The company includes programs to attract,
retain, and promote the development of a diverse talent of employees. Also, the strategy includes
providing support systems for individuals with various backgrounds and educating all associates
so that relevant people can adopt the skills necessary for achieving sustainable growth. The
company strives to ensure the workplace environment is inclusive and fair to its partners, who
participate in diversity training regularly. Correspondingly, ongoing dialogue provides every
individual with an understanding of other colleagues as well as the suppliers and customers, among
other stakeholders. The inclusive culture involves a focus on diversity, integrity, quality,
collaboration, gauging of performance, accountability, and customer satisfaction.
Such values create the opportunity to leverage a comprehensive engagement of individuals
from diverse backgrounds and with varying talents and ideas. Consequently, the culture will ensure
the sustainability of the project as it creates the ability to operate in a multicultural world.
Moreover, the culture emphasizes on organization and control. Precisely, the culture involves
placing a high value on relationships with external stakeholders, including customers, suppliers,
and creditors of diverse backgrounds. The culture is suitable for the project as it is likely to yield
excellent financial results and, hence, enhance the company's competitiveness. Conjointly, the
culture is integral as it allows for adaptability and fast reactions to changes in the market,
competition, and the external environment. Such results will allow for growth and expansion
opportunities for the project.
PROJECT IMPLEMENTATION
4
Roles and Responsibilities
Project Lead
The role of the leader is to coordinate the entire project to fruition and to ensure the
achievement and maintenance of high morale among project team members. One responsibility
involves the inculcation of team spirit, teamwork, and collaboration among members of the
project. Also, the lead has the duty of improving communications and information sharing among
all teams to ensure consistency in the conduct of tasks. Further, the project lead is responsible for
ensuring that members obtain the relevant training to cultivate their expertise necessary to
participate in the project. Moreover, the lead must initiate change management processes,
collecting information for documentation and reporting to management, and obtaining funding
approval. The project lead will be strictly in charge of each task and will rigorously monitor the
same along the implementation course.
Budget Team
The group will comprise of individuals with financial skills to manage all the costs incurred
by the concept. The cost manager will maintain a log of all the changes to cost that occur
throughout the project for future references. In the early stages of the project, the cost manager
will provide a cost breakdown structure as well as a cost curve to allow for smooth coordination
of when and where the organization will incur costs. The team will work together with the project
lead to identify and budget the costs for the project.
Communications Team
The group will comprise of individuals capable of establishing communication paths. The
result will be that timely information flows freely to stakeholders throughout the project. The
PROJECT IMPLEMENTATION
5
primary source of communication will be emails and meetings. The communications team leader
will relay all information back to the project lead for tracking and approval.
Human Resource Team
The group will comprise of individuals with human resource management skills to attain
and manage all staffing necessary for the project. Some of the staff will be available in-house,
while others will arise from an interactive marketing firm. Staff working on the project will follow
a chain of command and provide progress updates to their respective team leaders. The creation of
a responsibility assignment matrix will enhance the allocation of resource responsibilities to key
role players.
Risk Management Team
Members of the group will consist of individuals conversant with risk management to
manage all the potential risks likely to occur throughout the project. Following the acceptance of
the project, the team leader will immediately establish a risk register and develop a risk breakdown
structure. Such actions will allow for the determination of all the potential risks facing the project.
The team will collaborate with the project lead to ensure the identification of all possible risks and
the establishment of a clear solution to prevent the same.
Procurement Management Team
Members will comprise of persons with knowledge and skills on supply management to
ensure the acquisition of all materials and establishment of supplier relationships. The company's
purchasing policy will guide procurement practices to ensure all purchases serve the best interest
of the project tasks. The team and project lead will collaborate to ensure an accurate and timely
delivery of all resources and services.
PROJECT IMPLEMENTATION
6
Contingency Plans
Regarding the modification of the implementation team whenever there is the need, the
process will include consultations among relevant stakeholders and resource mobilization.
Precisely, coordination of the company and the project team, as well as the maintenance of a
particular number of suppliers and contacts for specific resources, may help address the issue
(Kerzner, 2011). Similarly, early preparation of individual tasks will allow for the prioritization of
resources that require a refill or replacement. Also, assuming that funds will be sustainable
throughout the project disregards the fact that the implementation team may need modification,
which may lead to cost increments. For example, the change of the implementation team may
involve the addition of new personnel, coupled with their need for training and the creation of tools
for reinforcing learning, and, hence, would create additional costs.
Subsequent actions will involve cross-cultural training, the assessment of the performance
of tasks against project expectations and milestones, and the development of a framework that
includes the provision of change initiatives and personal and professional development (Bryson
and Alston, 2011). Correspondingly, the available funds or lack of it could create the disparity
between having sufficient resources to facilitate all the tasks necessary to complete the project.
Mitigating the issue will involve the identification of greater ways to generate funds, including
lobbying activities, donor requests, and borrowings. Such generation of funds would also enable
the project team to take advantage of unforeseen opportunities.
Concisely, the concept will add value to the Coca-Cola Company through the provision of
relevant resources, the promotion of management and staff development, and the enhancement of
critical transitions and change to the implementation team. The teams above are suitable for
PROJECT IMPLEMENTATION
7
accomplishing the goal of the project, including ensuring maximum control of tasks and optimum
communication activities.
PROJECT IMPLEMENTATION
8
References
Bell, L. (2013). The story of Coca-Cola. North Mankato, Minnesota: Smart Apple Media.
Bryson, J. M., & Alston, F. K. (2011). Creating Your Strategic Plan. New York, NY: Springer.
Kerzner, H. R. (2011). Strategic Planning for Project Management. Chicago, IL: John Wiley &
Sons.
COCA COLA COMPANY
Stephanie Kimber
MBA-705
September 6, 2017
Executive Summary
The Coca Cola company is perceived to be the most famous trademark on the globe, and
it is equally so. The company claims more than 400 brands that appeal to a wide range of
individuals throughout the world. They are in a position to fulfill needs of every one of their
buyers making their experience with their beverages a better one. The entity’s drinks entice a lot
of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as
its items are sold in over two hundred countries in the world, while major contenders like Pepsi
are just available in very few countries. Such a competitive advantage has placed Coca Cola in
front of all its rivals. The organization’s products are easily identified and recognized by all
(Bell, 2013).
The popularity of the company has made it an exceptional and unmistakable group. Due
to its branding, Coca Cola has been able to do well and grow regarding revenue, a factor that will
continue. The profits are key aspects have enhanced its promotion of some of the new products
and their advertisements. Coca Cola as it considers the advancement of numerous different
items. Multiple aspects of Coca-Cola turn out to be better than that of contenders, from corporate
structure to promotional techniques. Some of this entail, implementation plan, positioning and
market mix strategy. These perspectives place Coca-Cola way in front of its competitors,
instilling hope to the company for higher targets and objectives. It is the organization’s primary
goal to refresh and fulfill the world. It is their vision to make their products to be within reach
regardless of their geographical positions.
Behavioral Analysis of the Company
For any organization to do well in its field, it needs to have a clear view of its client’s
needs. For Coca-Cola organization to completely have this aspect clearly, they must set out on an
exercise to decide the customer’s loyalty, satisfaction, and behavior. Soft beverages, unlike
alcoholic, can get categorized under a low involvement group of products. It is because of it's
inexpensive to purchase nature and its availability to the clients (Noe, 2013). Recent studies
indicate that, lately, for one to buy a soft drink there is an in-depth decision making required.
The Coca-Cola organization has made exemplary strides mainly to offer a variety of
products to its clients even with the competitive nature of the market. Consumers’ choice gets
based on the brand aspect in which the organization wins most customers' heart against its rivals.
Even though a significant number of people deny cases to having inclination picking between
Coca-Cola items or its rivals', many have a strong desire in some way. Many inclines toward
Coca-Cola products since the organization has more than hundred years of history and
predictable brand image. This picture is engraved in a lot of people subsequently end up
purchasing their beverages. It is out rightly conspicuous in the company’s high market share in
the field of soft drinks.
Aside from accentuating on client behavior, consumer satisfaction likewise plays a vital
role in deciding on the real revenue-boosting factors offer more priority to a business decision
that ends up in customer loyalty. Studies show that the Coca Cola Company has the most
exceptional reputation as far as the field of manufacturing of soft drinks is concerned. It was
even granted as the fifth best in the section of most recognized bodies in the year 2013 across the
globe in which its primary opponent came in at position 10. Statists additionally have it that, the
phrase or the name "Coca-Cola" gets searched nearly ten times more than its first rival Pepsi.
This statics is as indicated by the Google Trends.
Another pointer is through the online networking. Coca-Cola has more than 89.8 million
preferences against Pepsi's 34 million likes on their separate fan pages on Facebook. Indeed,
even with the brand acknowledgment and high popularity, that the organization shows in the soft
drinks industry, Coca-Cola organization still have its undertakings at a reasonable level
crosswise over different metrics. Even with consumer-packaged commodities have no services
component; most customers still prefer to purchase a package. Along these lines, consumer
satisfaction for organizations in this field is an essential determinant of client loyalty.
Brand Equity
Brand equity or value alludes to a brand's capacity or power extracted from name
recognition and most critical of all the goodwill that it has earned after some time. It translates
into its business sales shooting up the rooftop consequently encountering higher net revenues
against competing brands. Brand equity metrics is vital in that; it is a technique used in
determining the value of the brand which incorporates a logo, name and different aspects that
recognize an individual item or services (Shimp, 2013). It comes in handy in advertising,
packaging, promoting and various types of marketing correspondences focal point of the
relationship of the item to the customers.
As far as the organization is concerned, somebody may argue out that it is not the
organization's beverages that have made it an outstanding brand amongst others across the world.
In any case, it is the entire advertising strategies that the firm utilizes which has influenced it to
boost its recognition amongst its customers. The organization has likewise pumped resources
into modern marketing techniques, for example, supporting and funding huge events, for
instance, Coke Studio, Olympic Games, BET, American Idol, NASCAR, NCAA, and the NBA.
These are the most watched games and programs over the world subsequently giving Coca-Cola
organization a global appearance (Pride, 2017).
The organization's growth is because of three fundamentals factors, industry development
particularly the non-alcoholic sector is one of the examples. Recent statistics did show that CocaCola boasts of a five percent expansion in its yearly growth. However, the management shows
that this sort of development is not uniform in all of all categories and markets since value
increment in developing markets has declined in a previous couple of years because of the
pressure heaped on proper utilization expenditures (Shimp, 2013). The second driver is the
organization's growth in its shares in which it is said to have outflanked the worldwide industry
in the thirty back to back quarters consequently gaining global value shares in that specific time
allotment. Price realization is the third and last development factor. It is mostly considering value
is enhancing cost architecture in which the organization primarily concentrates on expanding the
beverage events and not just improving their soft drinks.
Marketing Mix
The body utilizes a few techniques for its coordinated marketing correspondences.
Taking a case of a pattern in the organization's adverts which they give alternate and new
information concerning the drink yet at the same time keeping up and emphasizing how
incredible the drink is. These approaches get utilized by the Coca-Cola organization include;
interactive marketing, direct marketing, advertisements, public relations and social marketing. It
is, in this manner, therefore, that the firm makes use of broad category media platforms for
purposes of advertisements. These avenues of media entail billboards, commercials and point-ofsale tools which include those merchandising materials that get used for communicating to
clients via viz coolers, equipment used to sell their beverages and display racks. Lately, the
organization's adverts highlighted on AdAge's incorporated one that got launched in the year
2010 named "The Happiness Machine," and another done in 2008 known as "It Mine." All have
been instrumental in fueling “Coke To the side of Life Campaign" to success. Also, Coca Cola
Company utilizes the strategy of direct marketing as far as integrating marketing communication
is concerned. This approach involves making agreements with clubs and hotels to offer their soft
drinks and beverages. Coca-Cola is additionally taking advantage of global sports and games
events where they sponsor them hence using their names. With such a strategy, Coca Cola builds
on to its customer database.
Interactive online networking has also been another channel that the organization has
used to reach to most of the clients. Along these lines, they employ the methods of "fans first"
technique. By increasing its online networking appearance, the company has been able to obtain
more than 91 million likes and followings on their Facebook fan page. The Enterprise played
host to a campaign named #CokeGames on Facebook and Instagram in the year 2014. This sort
of interactive approaches came into place because of the Olympic Games that were ongoing at
that period. They additionally facilitated occasions, like, "CokeCurling" And "Speed Sipping."
The organization posted on its Facebook fan page that Speed skating is fun; however, Seep
shipping is delightful. With this well-crafted and innovative approach, the company boosted their
brand awareness (Frey, 2014).
Conclusion
Looking at the pricing methodology that Coca-Cola organization took is an appropriate
one. It is so since they are organized in a manner to offer its customers value for their cash. The
pricing framework is crafted and has its foundation on cost. On the other hand, they are intensely
and similarly anchored on demand and competition. As far as research is concerned, we get the
chance to understand that the cost of creating a bottle of 18oz Coca-Cola drink is estimated to be
$0.05. The organization hardly bases its beverages and soft drinks on customer’s perception and
competitive frame of the brand. Along these lines, the evidence of its pricing structure lies
determinedly on the cost of Coke bottles in retail shops, where customers must buy a 18oz bottle
of Coke for $2.29 and in this manner 12oz container for $1.69 than more than twenty times of its
original processing price.
References
Bell, L. (2013). The story of Coca-Cola. North Mankato, Minn.: Smart Apple Media.
Frey, A. (2014). The effective marketing mix. [Hanover, N.H.]: Amos Tuck School of Business
Administration.
Noe, R. (2013). Human resource management. New York: McGraw-Hill/Irwin.
Pride, W. (2017). Foundations of business. New York: Cengage Learning.
Shimp, T. (2013). Advertising, promotion, and other aspects of integrated marketing
communications. Mason, OH: South-Western Cengage Learning.
Shimp, T. (2013). Advertising, promotion, and other aspects of integrated marketing
communications. Mason, OH: South-Western Cengage Learning.
Coca Cola Implementation Plan
Stephanie Kimber
MBA-750
September 16, 2017
2
Table of Contents
Introduction ................................................................................................................................................... 3
Physical and technological resources ............................................................................................................ 3
Implementation schedule .............................................................................................................................. 6
Project review process .................................................................................................................................. 7
Intrapreneurship/entrepreneurship ................................................................................................................ 7
References:.................................................................................................................................................... 9
3
Introduction
Coca-Cola is a popular company in the beverage sector across the entire world and
ranked third as the most valuable company. The success of the company and is innovation
depends on its marketing strategies, innovation and general aggressiveness in handling the issues
that affect its operations. Coca-Cola has manufacturing plants in many parts of the world that
make the company avail products quickly to its customers. Apart from retaining the market
reputation, the company must focus on increasing its market and customer database through
marketing and extensive research and innovation. The report identifies the physical and
technological resources that might propel Coca-Cola to the next level and increase its customer
database.
Physical and technological resources
Coca-Cola requires focusing improving its revenue and profitability. The company
operates in at least 200 nations and customers from those regions contribute to the company’s
profits. According to Fiore, (2016), the company requires a segmented revenue growth strategies
depending on the type of the market. For instance, the marketing needed in the USA wouldn’t
yield resources in India or Africa. The company must continue keeping the products relatively
affordable to customers especially in the third world nations. The company needs funding to
increase the volume of products to meet the growing demand of consumers. The developed
markets require price/mix together with increasing the profitability through premium packages
and small packages like aluminum bottles and glass bottles.
Value creation for the customers depends on the nation, therefore customer segmentation
acts as a good measure of increasing revenue. According to Fiore, (2015), the outcomes of
price/mix strategy in the developed nations not only increase revenue but also the market share
4
in the industry. Coca-Cola must generate quality products and different quantities to meet the
consumer demands.
The company must continue investing in the business and brands thus ensuring
continuity. The quality and quantity of advertising must increase. the company could set aside $
400 million annually for advertisement and focus on ads that generate impacts.
The company ought to dwell on a wide portfolio base. Strategic partnerships with other
beverage companies increase their expenses but increase their presence in many regions. The
company could invest in more brands. Increase the distribution of their products across the
United States increases the product availability in the stores.
The company requires at least $ 250 million in managing global campaigns that market
its entire Coke Trademark. According to Fiore, (2016), “Taste the Feeling” marketing campaign
enhances personal connections while enjoying the refreshment of Coca-Cola. The worldwide
campaign makes the company broad and gives the consumers the knowledge about their new
products like Coke Zero and Diet Coke. Consumers, therefore, develop more choices to the
products that they may use.
The company must focus on efficiency in its marketing activities. The company must
invest in adequate marketing apart from raising its financial flexibility. In the long term, the
growth momentum within Coca-Cola would increase, which in turn increases the productivity
and efficiency while reducing the operational costs within the company.
The company must stress on the “Zero-based work” that requires the budgets within the
company to begin from zero level and get justified on an annual basis rather than carried
5
forward. The company must reduce its non-media marketing, for instance, in-store promotions
don’t add value to the company.
The company ought to focus on continuous saving and productivity across its
manufacturing plants. Productivity involves a day-by-day process rather than an event which
allows the company get better and leaner. Once the company generates profits, the shareholders
become the first beneficiaries of the developments.
Despite the variation in consumer preference and taste, the company must ensure that its
production gets simple. The company doesn’t require lots of resources but improving its
processes following the innovation within the supply chain and retail of beverage industry. CocaCola must empower its employees in making sure they move with speed to continue dominating
the market.
The company could reshape its venture and start by focusing on the operational structure
and improve areas that they could work better, efficiently and smarter. The business units must
directly link to the headquarters, thus eliminating the functional management. The firm must
streamline most of its internal processes thus eliminate the roadblocks that barred the company
from getting responsive and effective as it ought.
Increasing the employee experience gives the company an opportunity to increase its
productivity while making the workplace refreshing and fun. The workplace must avail resources
needed to innovate and increase the learning or curiosity of the workers. Commitment must
occur from the top managers to the bottom workers thus making the company a worthy place for
development while meeting the customer needs.
6
Refocus the business model through increasing the brands in the portfolio with at least
500 items like tea, coffee, juice drinks, beverages, water, and dairy. Oakes, (2016) argued that
the company currently has 20 brands that give them about a billion in revenues, while the rest
supplement the consumer demands. The business used the opportunity and must increase the
brand items so that consumers don’t miss out on anything.
Implementation schedule
The schedule might take two to three financial years because it’s not an event but a
process that’s continuous. In the first year, the business must seek talented employees that would
drive major improvements within the business. The company needs to improve its culture,
systems, resources, and people. The components must work together and help the other
interchangeably before change gets realized in the company.
Every three months the company must assess its employees to assess gaps or lacks the
right employees. Oakes, (2016) argued that the company then proceeds to announce positions
for people with skills and competencies to fill those positions. The next three months after
recruitment involves induction, planning, monitoring and improving their skills. The Coca-Cola
requires training the workers shortly after recruitment since they must work according to the
strategic plan.
Apart from the time, Coca-Cola must avail financial resources that support every phase of
its projects. Goals can get attained if funds drive the activities towards the goals exist. The
employees need equipment needed to perform their duties. Not all funds could be availed at the
start, but a clear goal must illustrate the sourcing such as banks and shares.
7
Project review process
Once the strategies and techniques get implemented it's important to determine if the
changes met the demands or areas that didn’t work as needed. The review must focus on areas
that require improvement. The benefits of the changes indicate the efforts of Coca-Cola and its
workers, and also earmark the areas that need redress. The company must indicate the lessons
learned and mistakes that must not get repeated in the future projects or improvements.
Coca-Cola could perform a gap analysis that determines whether the goals get attained as
needed. The expected deliverables like price reduction or meeting the consumer demands. Once
such gaps get identified, the company must determine appropriate methods that would allow
them to close the gaps.
The stakeholder satisfaction means a lot to the review process. The end user needs of the
project must get met otherwise it's needless improving the areas. The impact on the consumers,
for instance, increases more products on the portfolio and the consumer reception matters a lot.
Intrapreneurship/entrepreneurship
The company could select a team of talented workers from different departments to meet
the demands of the consumers in better means. The company could allow the team to the ground
and collect information on the consumers about the products that best meet their demands. The
team might produce different blends of organic drinks packed in organic or reusable cans. The
company must then engage in marketing the commodities and sell them affordably.
The article dwells on resources that Coca-Cola needs to improve its processes to capture
more customers and market their products to all over the world. The company must first
eliminate in-store marketing and engage in thorough marketing which grows them. Value-based
8
ads require millions of dollars annually and the company must plan for the usage. Acquiring
talented workers from different areas then letting them train and learn as they add value to the
company.
9
References:
Fiore, F. (2016). Write a business plan ... in no time. Indianapolis, IN: Que.
Griffin, R. W. (2017). Fundamentals of management: Core concepts and applications. Boston,
Mass: Houghton Mifflin.
Oakes, G. (2016). Project reviews, assurance and governance. London: Routledge.
Shavinina, L. V. (2013). The international handbook on innovation. Oxford: Pergamon.
Wysocki, R. (2014). Project Management Process Improvement. Norwood: Artech House.
Purchase answer to see full
attachment