Week 5: Strategic Management of the Coca-Cola Company

Strategic management
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The Coca-Cola Company produces syrup concentrate and sells it to numerous bottlers’ companies throughout the globe. The Coca Cola Company implemented plans to purchase the Coca-Cola Enterprises, its largest bottler to expand more control of production and distribution. The company also announced plans of acquiring German bottling operations. According to the vertical integration concept, (pp 210-214) a company can become its own supplier or producer by integrating preceding or successive manufacturing processes. The firm can adopt backward integration by incorporating more processes towards the source of raw materials. On the other hand, the firm can adopt forward integration by integrating more processes towards the ultimate consumer. The strategy aids the firm to achieve a dominant position in the industry. The Coca-Cola Company adoption of forward integration to purchase a bottling company helped the company to expand its production, distribution and increase its dominance position in the industry.
The Coca-Cola Company devised plans on cutting costs by reducing the size of drinks bottles and introducing mini-cans alternatives. The smaller packaging has enabled the Company to achieve higher margins. According to turnaround strategies, (pp 193-195) firms can adopt turn strategies, which aid the firm in cutting costs and reverse the firms diminishing performance and return it growth and productivity. The Coca-Cola Company strategy of cost cutting by introducing smaller packaging will assist the company invigorate its profitability and reposition its competitive position in the beverage industry.
The Coca-Cola Company announced plans to purchase Ades, a soy-based drink business from Uniliver Company. The acquisition of Ades by the company will provide more choice of healthful and appetizing products to its consumers. The acquisition of Ades expanded the Coca-Cola Company joint venture partnership with the Latin America bottling company. Moreover, the Coca-Cola Company announced plans to create a joint ventur...