Coke’s Corporate-Societal Relationship

Coke’s Corporate-Societal Relationship
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Coke’s Corporate-Societal Relationship
Coke is one of the multinational companies that has established a market base in different parts of the world. Its brand is well- known for the manufacturing of beverages. The company has evolved over the recent years to offer consumers the beverage products they wish for. They offer low to no sugar carbonated drinks. Their drinks come in different flavors, and the same flavors are being sold in different parts of the world. Among the common flavors are Coke, sprite, and Fanta. Each of these flavors has been divide into various categories to suit the needs of different consumers.
Primary stakeholders refer to the individuals that are directly affected by the operations of the company. Coke's primary stakeholders are the customers, investors, and employees. Each of these stakeholders plays a major role in influencing the company's financial performance. One way the primary stakeholders influence the firm's performance is through good stakeholder relations. When stakeholders have a good relationship, they facilitate the smooth running of activities within the company. An example is where Coke's financial position is poor. Stakeholder relations play a major role in helping the company to bounce back to reliable performance. The stakeholders find out more details about the cause of the poor performance. This information is in turn used in the strategic planning process to enhance the company's performance. If poor customer services were causing the poor performance, regulations are set to improve the customer service team's performance. A good customer service team increases the customer retention rate, thus improving a company's financial performance. In situations where the company is performing well, stakeholder relations help maintain such performance in the long run. The stakeholders also influence Coke's financial performance by utilizing their power. Stakeholders have the power to utilize the company's assets to secure the intended results. An example is a case where investors provide the necessary funding for buying company assets. Such assets are, in turn, used to enable the company to gain a sustainable competitive advantage. Coke is a well-known brand, which has enabled the company to gain a competitive advantage. The stakeholders ensure to sustain the company's brand to prevent it from losing customers (Jones & Comfort, 2018). Another way through which the stakeholders influence the company's financial performance is by facilitating the decision-making process. The financial performance of Coke depends on the decisions made by the management team. The stakeholders determine a lot the type of decisions to be made. For instance, decisions that require financing are highly influenced by investors. The investors should be willing to provide financing before the decision can be made (Lambooy et al., 2018). If the investors cannot afford the finance, it will be challenging) for Coke's management to make financial decisions. In a case where a company makes financial decisions and is unable to access the financing, it might be negatively a...