1.0 Globalization and competitiveness
My choice company is Coca Cola, a reputed company in the beverage industry for more than a century since rolling out its operation in different places.
1.1Effects of globalization and technology:
Globalization is a business process of making its brand and household name worldwide. This happens when a firm spreads out its operations to different areas, and comes with many benefits to the company as well as different growth in different business fronts:
When a company spreads to different parts of the globe, the benefits that accrue to the firm are diverse. To begin with revenues grow by large margins due to increased customers for the product or services. This in turn will increase the chances of the business sustainability in the diverse environments. This is as a result of increased sales that come as a result of increased exposure to many potential customers as well as robust marketing skills by the hired staff (Lawrence, 2002).
Since diversification calls for increased man power as a way of ensuring all the increased duties are well taken care of, this increases people that are attributed to the organisation.This,if well taken care of at the initial stages brings in fresh minds, that when utilized in brainstorming the strategic direction of the company will assure success. For a growing business, this will ensure that the company goes through all the business related hurdles that could otherwise bring failure to the company (Lawrence, 2002).
Globalization as a part of wide business planning has numerous untold benefits of cost cutting in any business enterprise. This comes as a result of various reasons attached to business operations, and is highlighted under the following areas (Lawrence, 2002).
It is against this back ground that businesses will largely gain by spreading out operations to different areas where the authorities have relaxed the rates for the sake of encouraging the sprouting up of new businesses. It will thus come as a reprieve to a company that enlarges its territory to provide this area with its products (Lawrence, 2002).
On the other side of the cost cutting strategy for business operating in different environment’s, cost of labor will be relative in some localities compared to the other areas, where cost benefit analysis has it that the production of a firm should be based where production is optimal, highlighting the importance of keeping the labor cost as low as possible. This can be made true by trying to decentralize the operations of the business, in a way that productions in a given area serve the nearest market segment instead of moving the finished products from one locality to another after processing has been finished, in case of a central processing system (Lawrence,2002)
It is also logical for business to operate in different areas around the globe for the purposes of ensuring close proximity to the raw materials it uses in production of goods or the services it embarks on. It does not make a business sense to maintain a centralized manufacturing system for a business whose raw materials come from different localities (Maxwell, 2010).
It is against this back ground that a business spreading out its activities to different areas will aid in making the access to raw materials simplified. This is as a result of reduced logistical planning, uncertainties brought about by environmental changes, subsequently ensuring that the business trades at the lowest cost possible (Maxwell, 2010).
1.2 Technology
Technology has come in to the business at a time when increased activity in different areas has made it difficult to keep communication, staffing as well as learning how other rival businesses are approaching the target markets. Through introduction of technological advancements like E-mails, company websites makes it very possible for Coca Cola to keep track of how to keep their stakeholders informed. To cap it all, internet marketing has kept all the businesses at toes in terms of keeping competitors at bay. Since internet has provided a flat playing ground for all businesses including Coca Cola, the impressive marketing offered by the business development team has ensured a firm grip to the market share of the business (Maxwell,2010).
2.0 Mode of operation to maximize return of Coca Cola.
Coca Cola has ensured that cost cutting strategy works best to keep competitors at bay since resources are used sparingly to prevent the business from overspending. This has given the company competitive edges in the markets Coca Cola has ventured.Again playing the part of a team leader in all the areas it operates in has given the company a defensive market share compared to the rivals (Maxwell,2010).
3.0 Vision and mission statement its impact on the company.
Vision statement in a business gives the outline of how a business wants to grow its operations through the engine of time. Simply put, it highlights a bigger picture of what the company wants to become. On the other hand, mission brings into focus how the business has prepared for the challenge ahead of becoming a blue chip firm. All the strategies to be applied are laid down, giving a second chance for alternative strategies in case the first planned strategy does not work to the letter (Maxwell,2010)..
Hence, the above discussed business clarion points will keep the stakeholders of the business focused in the laid down procedures. This is by ensuring all the ways of operations in the business conform to the planned wider picture of the business as planned. The business under such times is poised to thrive since everyone is doing what he/she is supposed to do (Maxwell,2010)..
On a different note, vision and mission statements keep the employees motived in the course of their duties. This is because by ensuring that the company has laid down courses of action, every employee will remain focused as a way of ensuring that the overall goals of the company are adhered to the letter. As a result, the overall productivity of the business will go up since every stakeholder remains focused on what they are doing in a bid to make the business a better place. The end result of keeping every one focused on what they are doing, the business will thrive under different circumstances that are inevitable conditions that surround a business place. (Maxwell, 2010).
4.0 Contribution of stake holder to the success of business.
As a business strategy, maximum cooperation is required. As a matter of principle, shareholders of the business undertake all their duties with passion. This includes timely contribution of excess capital required to ensure that the planned activities go on as planned. Shareholders are also supposed to authorize the adoption of different funding that is meant to back up the capital introduced by the shareholders originally. Other decisions supposed to be undertaken done; the Shareholders will have finished their part of the bargain, giving the other shareholders a line clear on accomplishing their duties (Maxwell, 2010).
Employees are the people tasked with the duties of ensuring all the planned courses of action by the business are implemented at the lowest possible cost, keeping the goal of maximizing shareholders wealth alive. This highlights why the employees of any form should be treated with care since lack of loyalty (complete loyalty) can give the opponents of the business enterprise a cutting edge in the market. Coca cola Plc. has ensured this by ensuring that all their grievance are sorted soonest possible, giving them impressive packages that will reduce the chances of the performing members of staff from moving to rival firms (Lawrence, 2002).
Keeping the employees motivated through organized for exchange programs, recognition if their services through rewards and timely complements when they undertake their duties with extra zeal that suggests they are fully attached to the company (Lawrence, 2002).
Senior management forms the link between employees and shareholders of any business. Those considered for the post will undertake crucial duties like looking for financiers that back the shareholders’ investment in the business, as well as implementing the courses of action designed by the strategy ream. In Coca Cola Plc., the management team, ranking from the top to lower level management ensures that all the business segments run as planned. This has brought in unprecedented success in the hotly contested beverage markets (Lawrence, 2002).
References
Maxwell N.M (2010) Keeping competitive edge in market place: Washington: Mc GrawHill.
Lawrence R.N & Collins D.W (2002) Analyzing success of a business in highly contested markets: New York: Wiley & sons
