Management Planning
Coca- Cola Company is one of United States based company founded in 1886. This company began in a small Atlanta pharmacy, founded by Pemberton. During that time only 9 glasses of Coca-Cola were sold per day. Nearly two centuries later this company is one of the world’s leading manufacturer, and distributor of cola type’s products. This company has over 92,400 worldwide employees, 47 consecutive years with increased dividends, 200+ countries where their beverages are sold; 3,000+ beverages, and 123 years in business.
Coca-Cola as with every major organization has a planning function of management. One can analyze the impact that legal issues, ethics, and corporate social responsibility have had on management planning. Therefore, finding influences the company’s strategic, tactical, operational, and contingency planning. Management leading functions are planning, organizing leading and controlling. Coca-Cola Strategic Planning function is responsible for leading the development of the overall corporate strategy of the Company along with the global planning process (The Coca-Cola Company, 2006-2009).
This planning function is ran by Vice President John M. Farell. This consist of a team of members which are all in charge of different departments. Therefore, each department is ran by a Vice President, for example, Eddie R. Hays, PhD. is V. P. of science, he ensures supply and quality of faqvors used by Coca-Cola Company. Coca-Cola has had it share of legal issues that have impact management planning. In January 15,2009 a class action lawsuit was filed by CSPI (Center for Science in the Public Interest) requiring one of Coca-Cola’s product glaceau vitaminwater.
The CSPI was stating that this product had no nutritional value to it. In fact, according to CSPI nutritionists, the 33 grams of sugar in each bottle of VitaminWater do more to promote obesity, diabetes, and other health problems than the vitamins in the drinks do to perform the advertised benefits listed on the bottles (CSPI, 2009). Coca-Cola response that the success of glaceau vitaminwater is due in large part to consumers looking for a product like this to help support their healthy, active and on-the-go lifestyle.
Therefore, this could have impact management if things weren’t stated correctly on the bottle. Coca-Cola isn’t telling customers that this product will make you lose weight, but can be a healthier way to try to cut down on bad things your daily intake. Ethics can impact management planning. Coca-Cola is a huge company that has customers and consumers throughout the world. Globalization plays a major rule for this company. The Coca-Cola Company follows their Code of Business Conduct. These codes consist of integrity, honesty in all matters.
In the past, Coca-Cola has faced lawsuit from former employees stating discrimination. In 1999, a class action lawsuit was filed against the Coca Cola Company by four current and former African-American employees for racial discrimination under the US Civil Rights Act (Business & Human Rights Resource Centre, 2009). The plaintiffs alleged suffered discrimination pay, promotions and performance evaluations. The case was settled in 2000, Coca-Cola agreed to a $192 million settlement. Coca-Cola denied all allegations, management making rapid changes in personnel policies and procedures.
Corporate social responsibility is managed through the Public Policy and Corporate Reputation Council, a cross-functional group of senior managers from our Company and bottling partners. The Council identifies risks and opportunities faced by our business and communities and recommends strategies to address these challenges (The Coca-Cola Company, 2006-2009). In November 19, 2009, Coca-Cola was awarded CSR at the Fifth Annual AmCham Shanghai CSR Conference and Awards Ceremony. This award is for Coca-Cola outstanding CSR (Corporate Social Responsibility) in China Beverages Ltd.
This is a great impact for Coca-Cola management. Coca-Cola Company recognizes their business is only as strong and sustainable as the communities in which they operate. They aspire to promote and facilitate sustainable development and conduct our business in a socially responsible way. Coca-Cola continues to improve and succeed. The strategic planning, contains new ways to they can create and improve their taste and types of beverages. These also include market increasing, improving profitability and boosting return on investment.
In 2008, it is Coca-Cola 47 consecutive year of increased dividends. Innovation is what drives Coca- Cola to grow. In strategic planning is where they set goals of how much productions need to be produce in order to meet quota and how long it will that to meet this quotas. Tactical and Operational planning is where the strategic goals and plans are identified. Coca-Cola’s tactical planners are constantly trying to determine what new markets the company should enter, how to steal market share from competitors and how to encourage more consumers to use Coca-Cola’s products (eHow, 1999-2009).
The first step is to determine the size of various markets around the world. This will help the company prioritize what markets should be aimed first. For example, suppose Coca-Cola was considering whether or not to attempt expansion into Argentina. Using international census data, Coca-Cola’s tactical planners determine that the country’s population is 41 million. Coca-Cola would then hire a local marketing agency to conduct detailed customer surveys to determine what percentage of the population consumes Coca-Cola’s soda on a regular basis (eHow, 1999-2009).
The next step after choosing the market place to target, Coca-Cola would decide upon what the appropriate strategy would be to achieve this goal. Operational planning is the process of identifying the specific procedures and process required. Once the tactical planning in decide, Coca-Cola will have work on how many freights will need to go out for each locations. How much product is need to be produced, inventory needed to complete this goals. Advertising is a key role to this part; marketing will help consumers want to go try the new beverage do to what they have seen in commercials, ads, store fronts and coupons.
Appearance plays a role as well, if products are in new bottles or different colors this would draw the eye of a consumer. Cola-Cola future is still bright. This company will continue to starve with new innovations. Coca-Cola will continue to follow the four planning of management. This company will to be impacted by legal, ethical, and corporate social responsibility through the years to come, and some they will win and some they will lose. Strategic, tactical, operational planning is a key element to getting goals and plans achieve at Coca-Cola. Coca- Cola is a worldwide organization filled with diversity, integrity, and success.
References: Business & Human Rights Resource Centre. (2009). Case profile: Coca-Cola lawsuit (re racial discrimination in USA). Retrieved December 11, 2009, from Business & Human Rights Resource Centre: http://www. business-humanrights. org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/Coca-ColalawsuitreracialdiscriminationinUSA CSPI. (2009, January 15). Coke Sued for Fraudulent Claims on Obesity-Promoting “VitaminWater”. Retrieved December 11, 2009, from CSPI Newsroom: http://www. cspinet. org/new/200901151. html eHow, I. (1999-2009).
