Executive Summary 2
Introduction 3
Coca-Cola Vision and Analysis 5
Coca Cola’s Values and Analysis 7
Alignment of Coca Cola’s Mission, Vision, Values, & Goals with Stakeholder’s Interests 8
Recommended Changes 8
Conclusion 9
References 9
Executive Summary
The purpose of this report is to discuss a strategic management process via critical analysis and evaluation of the Coca Cola Company’s vision, mission, goals, and objectives of the organization. From a review of each statement, a determination will be made concerning the need for improvement or if the organization is on target and simply needs to make an adjustment relative to the business practices being used. This report will conclude with a summation of the information examined.
Introduction
The Coca-Cola Company is viewed as the world’s number one maker of soft drinks selling an estimated 1.3 billion beverages daily with the company’s red and white trademark being a brand symbol that is known throughout the world ("The Coca-Cola Company - Company Profile, Information, Business Description, History, Background Information On The Coca-Cola Company"). The organization manufactures five top known soft drinks to include Coca-Cola which is number one, Diet Coke, Fanta, and Sprite that range in selling numbers three through five. The company’s main headquarters is located in Atlanta, GA and the organization operates a most pervasive distribution system with almost 400 beverage products in over 200 countries. The Coca-Cola Company was incorporated in 1892, has more than 146,200 employees, and total sales for 2015 was over $8.1B (Kacur 3-15).
The organization has been in business over 120 years and has been successful in its business operations even during the slow economy in the early 2000s; however, it is now time for a strategic management plan that will enable the organization to continue success. As Hammonds (2001) has stated in an article discussed by Michael Porter, there is a distinction between strategy and operational effectiveness. For organizations to continue to be successful in the domestic and global market there must be an understanding of strategy. For strategy to be successful, there are five areas of consideration to include (1) goal setting which is to ensure clarity of the vision for senior management and the employees; (2) analysis which allows information to be gained that will allow for the accomplishment of the vision; (3) strategy formulation which allows for the reviewing of information gathered from the completed analysis; (4) strategy implementation which is the action stage of the strategic management process with each individual of the organization being clear concerning responsibilities and duties as well as how what they do fits in with the overall organizational goal; and (5) evaluation and control which includes evaluation and control actions that contribute to the success of the strategic management process to include performance measurements, consistent review of internal as well as external issues that will allow for any corrective actions that are needed (Clayton). It is now time to discuss the organization’s mission statement and begin an analysis of that statement.
Coca-Cola’s Mission Statement and Analysis
The purpose of a mission statement is to define the purpose of the organization – the reason the company exists. This simple statement shares the brand or services that will be offered to clients, gives the reader the reason for the business, and allows the shareholders and/or investors the knowledge needed to make the decision to invest and be a part of the organization. This is of importance and keeps the company focused on why the organization really exists.
Another benefit of the mission statement is that it ensures some degree of clarity for the investors as well as the employees so that there is confidence relative to the use of resources. The mission statement is written in a manner to ensure that the stakeholders are very clear on the purpose of the organization so that everyone from senior leadership to the employees is focused on the same organizational goals and objectives (Gleeson).
The mission statement should also be included within corporate relations as well as on the company website to ensure that customers also know the reason for the company’s existence. It is important to know the mission statement, what the statement means, what the company does relative to product, and what the company stands for. Let us now review Coca-Cola’s Mission Statement.
The Coco-Cola Company Mission statement until 2013 was ("Mission, Vision & Values"):
“To refresh the world in mind, body, and spirit; To inspire moments of optimism and happiness through our brands and actions”
“To refresh the world - in mind, body and spirit - To inspire moments of optimism through our brands and action - To create value and make a difference everywhere we engage”
The changing of the mission statement was positive including the importance of creating value while making a difference. While value is not really described within this mission statement, something could be added within the statement to include what Coca-Cola sees as value. Since value is defined by importance, worth, and/or principles of standards of behavior; consideration could be given to adding a statement to incorporate the meaning of value.
Coca-Cola Vision and Analysis
The purpose of a vision statement can sometimes be used the same as the mission statement; however, the vision statement offers more direction with the inclusion of the corporate values. The vision statement if written properly should provide direction for the company for many years to come while also showing the commitment the organization has relative to integrity, directness, and openness (Kokemuller). These are core values that will enable the success as well as the sustainability of the organization. The organizational vision should reveal the desire of the organization relative to meeting customer demand with a service that is second to none.
Coca-Cola’s Vision Statement is created with a marketing strategy that is viewed by the organization as a roadmap to guide the organization. The vision focuses on (1) people which represents the employees and the organization having a focus on creating an inspiring workplace; (2) portfolio which involves bringing the world quality beverage brands that are enjoyed by the customers; (3) partners which involves the organization ensuring that the company satisfies the customers while also demonstrating value; (4) planet which the organization aids while building and supporting the sustainability of communities; (5) profit which involves the maximizing of long term return to shareholders while also taking care of overall organization responsibilities; and (6) productivity which means the practicing of lean processes within the organization.
The vision statement is clear and definitely describes everything about the organization, the products, the employees, and plans for sustainability. There must also be the organizational focus of ensuring that every word of the vision is being accomplished to the satisfaction of the organization and the stakeholders thereby guaranteeing continued success of the business. Organizational integrity and ethical business practices enable the continued success of the organization while at the same time building trust and loyalty toward the brand.
Coca Cola’s Values and Analysis
An organization’s values are of the utmost of concern as these values set the stage for the behavior of the employees. To show the importance of organizational value, a recent study was conducted by the Boston Research Group based on a survey of many Americans to include corporate leadership and it was found that 3 percent of those used within the survey described their organization’s values as a form of self-guidance thereby guiding their actions and values within the organization (Amortegui). Since virtue and values are related there are six reasons why organizational focus should be on virtues/values to include: (1) virtues are a workplace game changer as employees who feel valued are committed and have high performance within the workplace; (2) virtues lead to growth of the entire person which means that employees know that what they have to offer and feel valued by the organization; (3) virtues lead to greater onboarding success which means that the employees ensure that customer satisfaction is a top priority; (4) virtues improve engagement which enables employee retention and satisfaction; and (5) virtues increase self-awareness which enables employees to exercise their strengths and find ways to overcome weaknesses.
Coca-Cola Company values serve as a direction keeper for the organization and is concerned with (1) leadership which is a top priority as leadership is responsible for leading the organization; (2) collaboration allows for the leveraging of collective genius; (3) integrity which is of major importance as integrity involves honesty and strong moral principles; (4) accountability which means being responsible; (5) passion which means being committed; (6) diversity which means inclusion of company brands and; (7) quality which is the organization standing by its product. These are values that are of importance and have enabled Coca-Cola to grow its business for over 100 years. As long as the organization keeps its focus on these values, the company will continue to sustainable.
Alignment of Coca Cola’s Mission, Vision, Values, & Goals with Stakeholder’s Interests
The organizational mission, vision, values and goals are aligned at this time which is of benefit to stakeholders as well as the employees of the organization. Coca-Cola has focus on the needs of the customers in all markets as well as to the franchise partners. The key to the success of any business is to understand organizational purpose and to always be abreast of the importance of strategic management processes. The organization also has an understanding of working smart thereby aligning organizational goals and objectives in a manner that will keep the organization successful both now and in the future.
Recommended Changes
At this time I do not see a need for any changes. While the mission statement could include information concerning organization values, the values have been well established in the value statement as well as the vision of the organization. It is important to note that with any organization changes are not made without total consideration of what those changes will bring about. Vision, mission, goals, and objectives are major concerns for an organization and must not be changed without a strategic plan that will ensure total success. Coca-Cola Company must stay abreast of the market with the ability to make strategic plans that will enable the continued success of the company.
Conclusion
The Coco-Cola Company has been in business successfully with over 100 years of business experience. The organization has created the Coca-Cola Hellenic Strategic Framework which demonstrates the organizations’ four strategic priorities that include community trust, consumer relevance, customer preference, and cost leadership ("Our Vision And Approach"). These are top priorities for the organization that have worked in the past and will continue to work as long as the organization stays abreast of importance of strategic management processes. Strategic planning will allow the organization to make the management of the organization easier by providing a framework that clearly defines the direction of the decision making process while also establishing a uniform vision and purpose that can be shared with every member of the organization. This process will ensure that everyone is working toward the accomplishment of organizational goals.
References
Amortegui, Jessica. "5 Reasons You Need To Instill Values In Your Organization". Fast Company. N.p., 2014. Web. 6 Aug. 2016.
Clayton, Jim. "The Five Stages Of The Strategic Management Process". Smallbusiness.chron.com. N.p., 2016. Web. 6 Aug. 2016.
Gleeson, Alan. "Mission Statement". Articles.bplans.co.uk. N.p., 2016. Web. 6 Aug. 2016.
Hammonds, Keith. "Michael Porter's Big Ideas". Fast Company. N.p., 2001. Web. 6 Aug. 2016.
Kacur, Petro. The coca-cola company reports third quarter 2015 results. 1st ed. Atlanta, GA: Coca-Cola Company, 2016. Web. 6 Aug. 2016.
Kokemuller, Neil. "Importance Of Mission Vision In Organizational Strategy". Smallbusiness.chron.com. N.p., 2016. Web. 6 Aug. 2016.
"Mission, Vision & Values". The Coca-Cola Company. N.p., 2016. Web. 6 Aug. 2016.
Our Vision And Approach". Coca-colahellenic.com. N.p., 2016. Web. 6 Aug. 2016.
The Coca-Cola Company - Company Profile, Information, Business Description, History, Background Information On The Coca-Cola Company". Referenceforbusiness.com. N.p., 2016. Web. 6 Aug. 2016.
