A vision and mission are very critical elements in an organizational strategy. They serve as the foundation guidelines in the establishment of the organizational goals and objective. An organizational mission statement is a statement of purpose. It is decision-making guide for an organization. It helps the employees in ensuring that all the activities of the organizational align with the mission. To the employers and the managers, it offers them insight in seeing the need to be in business. The work of a vision statement is to provide direction to the company. It takes the mission and adds some corporate values to it (Nielsen, 2011). It also offers inspiration to the employees and gives them the sense of purpose. Coca-Cola’s mission is to create a happy world using its products. The vision is to make products that meet the needs of the customers, maximize value for shareholders and nurture beneficial relationships with customers and distributors.
Coca-Cola began as a result of curiosity. Dr. John S. Pemberton made a soft drink that he was to sell at the soda fountain. Pemberton made flavored syrup and took it to nearest pharmacy in where they mixed it with water that was carbonated. Those who consumed it as a sample said that it was excellent. He decided to name the beverage “Coca-Cola” and he designed its trademark in which up to date is used all over the world.
The financial statement of Coca-Cola is made of different items. The first example is the net operating revenue. It is the recognized revenue in every period. It is evidence that the operating revenue increases in every year. The other item is the operating income; this is achieved through the deduction of the operating expenses from operating revenue. For example, in the year 2010 to 2011, and from the year 2011 to 2012, the operating income increased. The other item is income before the income tax. In the year 2010 to 2011, the income before tax declined and slightly increased in the next year. That was in 2011.
There are examples of strategies at different levels at Coca-Cola. In the corporate strategy, there is vertical integration. It is the combination of several links in the distribution chain (Schermerhorn, 2010). The company started Coca-Cola Enterprises, and this was an independent bottling point for Coca-Cola. The main company would buy other struggling bottles and sell them at this point. Coca-Cola has also established links and relationship with other distributors, and this has helped them to lower their transaction money.
The other strategy is diversification strategy. It is where by one seek unfamiliar markets and products to exploit and develop (Schermerhorn, 2010). Coca-Cola applies this strategy in exploring new types of drinks. It also maintains its tradition of expanding its portfolio brands. It has also branched from its traditional soft drinks to energy drinks.
Strategic alliance is another technique used by Coca-Cola. This is whereby Coca-Cola ensures that its brands are distributed all over the world. It focuses on making it possible for her customers to reach their products more frequently. All the stakeholders of Coca-Cola work in a close relationship with their customers; for example, restaurant, grocery stores, street vendors and many others work closely with the company. It is also evidence that Coca-Cola maximizes its profit from joint ventures with other organizations.
The business level strategies of Coca-Cola involve making the products of the company unique from its competitors (Schermerhorn, 2010). It differentiates its products through the diverse marketing and advertisings in all parts of the world. The advertisement and campaigns are mainly done to ensure that the consumer is loyal to the products of the company. The company offers its products in different bottles. It has also launched a machine in which one can combine different flavors provided by the company.
The functional level strategies of Coca-Cola involve; one, it has made the price of products affordable to many customers. In every country, there are different products offered by Coca-Cola and their prices are relatively lower compared to competitors products. The products of the company are differentiated from those of competitors by the famous brand name of Coca-Cola.
Coca-Cola should produce their products according to the taste and demand of its customers. Their products should always be available in the market whenever required by the consumer. The marketing department should increase the awareness of their products to everyone especially those located in rural areas. The company should also utilize the opportunities in the market by also introducing non-carbonated drinks to the market. Finally, the company should ensure that their advertisements do capture the attention of all people regardless of their age. It is because it is believed that their advertisements mainly target the youth and not the old people.
The strategic review and evaluation procedures include the following. First, coming up with managerial questions in which answer should come from the process. Second, one should have the objectives and values, which should act as a guideline for the process (Kim & Mauborgne, 2015). One should compare and contrast the objectives with the mission and goals to see whether they align together. One should also measure the internal and external factors and measure their performance, and if there is a gap existing between the results and the objectives of the organization, then corrective measures should be taken.
References
Kim, W. C., & Mauborgne, R. (2015). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Harvard: Harvard Business Review Press.
Nielsen, J. (2011). The myth of leadership: Creating leaderless organizations. Boston, MA: Nicholas Brealey Publishing.
Schermerhorn, J. R. (2010). Management. Hoboken, N.J: Wiley.
