...* ou should also submit the written notes you have made on the case. These may be used by examiners should they need further clarification on any aspect of your answer. They are weighted at 10% of the overall marks for this module, and your written answer count s of 90% of the marks. * You are to act as if you are a management consultant to the company. * You have been called to the company offices urgently. The firm has been approached by Miami Cruisers, a large American marine engineering company, wishing to get a foothold into the European market. Originally Miami Cruisers offered to buy M and L outright, but the family quickly rejected this. However, they have come back with a revised suggestion, that the two companies form a joint venture to develop greater business in the Mediterranean, focusing on super-yachts and related vessels that appeal to affluent private individuals. * They propose that they will provide most of the funding, but they are looking to M and L to set up the operation in the first instance, drawing on their existing personnel and expertise. * The Directors ask you to prepare quickly a briefing paper on the implications of this proposal. They do not want an evaluation of the potential business in financial terms, but they want to have an understanding how it might affect the company operationally. They ask you in particular to consider how the business currently works, covering marketing, personnel, structural and general management...
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...STARBUCK’S SWOT ANALİZİ Güçlü Yönler * Starbucks 2009 yılı sonunda 9,8 milyar dolar satış performansı ve 391 milyon dolarlık net karıyla son derece karlı ve güçlü bir şirkettir. * Dünya çapında 38 farklı ülkede 16,635 farklı noktada müşterilerine kaliteli ürünler ve hizmet sunarak iyi vakit geçirmelerini amaç edinmiş şirketin güçlü ve pozitif bir marka imajı vardır. * Fortune Dergisi’ nin çalışılabilecek en iyi 100 şirket araştırmasında 16. sırada yer alan şirket çalışan memnuniyetine önem vermektedir.(2007) * Şirket etik değerlere son derece önem vermektedir. Şirketin misyonunda işinin her yönünde çevresel liderlik rolünü üstlenmeyi vaat eden tanımlar bulunmaktadır. Zayıf Yönler * Starbucks’ın dünya çapında yeni ürün geliştirme ve yaratıcılığa dayalı bir ünü vardır. Şirket her ne kadar Arge’ye yoğun yatırım yapsa da yenilikçiliğinin zamanla duraksamasına karşı savunmasızdır. * Firmanın direk kendisinin yönettiği 7,102 şubesinin 5,668 i ABD sınırları içindeyken 1,434 tanesi diğer ülke sınırları içinde yer almaktadır. 5,338 ortaklık şubesinin ise 3,168 tanesi ABD de 2,170 tanesi diğer ülkelerdedir. Bu da Starbucks’ın 3/4 ünün ABD’de de faaliyet gösterdiğini diğer ülkelerde zayıf kaldığını göstermektedir. * Firma kahve çekirdeği perakendeciliğindeki rekabet avantajına bağlıdır ve bu onları zamanla ihtiyaca bağlı olarak ortaya çıkabilecek başka sektörlere doğru farklılaşmalarını yavaşlatacaktır. Fırsatlar * Starbucks fırsatları değerlendirme konusunda son derece...
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...The Link Between Competitive Advantage & Corporate Social Responsibility | Business and Society | | There is currently growing interest in corporate social responsibility (CSR) among both companies and managers. It has become an important topic of theoretical concentration and one of the most widely accepted business concepts. The major issues in the field of CSR concern stakeholder analysis and corporate strategic management. Numerous attempts have been made to link CSR and financial performance. While the debate over CSR continues, it reveals that some additional research can be done on the link between CSR and competitive advantage (CA). CSR is understood to be the way firms integrate social, environmental, and economic concerns into their values, culture, decision making, strategy, and operations in a transparent and accountable manner (Berger, 2007). Thereby firms establish better practices within, create wealth, and improve society (Berger, 2007). CSR programs go beyond legal and ethical frameworks to include a wide range of issues for the organization (Berger, 2007). Specifically, CSR programs can impact a wide range of issues managed by the organization including: corporate governance and ethics programs; health, safety, and environment programs; attention to human and labor rights; human resource management policies; community involvement; respect for indigenous groups and minorities; corporate philanthropy and employee volunteering; adherence to principles...
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...Jakobsen Problemformulering Lav et kort virksomhedsportræt af Coca Cola og redegør for deres CSR politik herunder: * Vision * Mission * Værdier Lav en analyse af virksomhedens CSR og dens praktiske anvendelse af CSR. Vurder på baggrund af analysen om der er sammenhold mellem deres CSR politik og deres praktiske anvendelse af CSR, samt Coca Colas fremtidige strategiske muligheder. Abstract This paper investigates how much and in which ways Coca Cola Enterprises uses CSR. The importance of CSR has grown over the last couple of years, and with the major brand Coca Cola has, it is of great importance to Coca Cola Enterprises. With Porter’s Five Forces I have analyzed the competition on the market, and which advantages it gives Coca Cola Enterprises when they use CSR. I have also used Porter’s generic strategies and through analysis I figured out which strategy Coca Cola Enterprises use. Coca Cola Enterprises uses the strategy called differentiation. This strategy is making customers prefer your product, and giving it a special value to the customers. CSR is about taking responsibility, and Coca Cola Enterprises does that. They do that in many ways for example with sustainable bottles and cans. The result shows that Coca Cola Enterprises uses CSR a lot. Through the analysis I have come forward to that Coca Cola Enterprises especially uses CSR in their marketing. This paper also shows that Coca Cola Enterprises has many strategic opportunities in the future, for...
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...The Marketing Review, 2003, 3, 289-309 www.themarketingreview.com Demetris Vrontis1 and Iain Sharp2 Manchester Metropolitan University Business School and Legal and General The Strategic Positioning of Coca-Cola in their Global Marketing Operation Examines how Coca-Cola has strategically positioned it self within the world’s soft drinks market. Given that they operate in over 200 countries, they are faced with a clear choice of whether to standardise their product offerings globally and reap the potential benefits of economies of scale, adapt their offerings to a particular market (which may facilitate increased market specific penetration), or adopt an integrated approach utilising both approaches simultaneously (Vrontis’ AdaptStand approach). There has been much literature written regarding the external and often uncontrollable factors which may impact upon a firms positioning strategy; this paper looks at these externalities and the internal controllables in order to derive a ‘best fit’ strategic and tactical approach. Moreover, this paper looks at the strategic international positioning of Coca-Cola by utilising a number of models. Keywords: Coca-Cola, global, international, strategy, positioning, adaptation, standardisation, AdaptStand, AdaptStandation, international, marketing, Introduction If we consider business to be akin to war, then perhaps there is no better starting point than the writings of Sun Tzu [circa 400-320 B.C.]. ‘The Art of ...
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...Porters 5 forces that was developed by Michael Porter in 1979 focuses on 5 main factors that can help the FMCG companies and determine the industry that a company wants to join or enter into. The Porters 5 forces will show if it is profitable for a company to enter the market based in the 5 criteria’s. Porter’s main plan was to understand the forces and the underlying causes that reveals the basis or foundation in an industry’s profitability while allowing to identify the current and the future incoming competition (Arline, 2015). According to Michael E. Porter the origin of profitability will not change regardless of the type of the industry that a company will operate in. But what will drive competition and the profit making ability will be structure of the industry, and not the fact that the industry is producing goods or services, is developing or matured in the market. Porters 5 Forces Model Source: (Masonmyers.com, 2016) Applying the porter’s five forces into Fmcg companies. Threat of new entrants. Coca cola is a well-known beverage company that falls into the FMCG category. They aren’t just a company but also hold a very strong brand name. Coca cola faces a medium risk of new entrants. They reap economies of scale and thus enjoy very low average cost making it hard for new entrants to enter the beverage market. And also the fact that Coca cola has been operating in the market for a very long time, their products are popular around the world in almost every country...
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...Case study Coca-cola Industry The Competition among companies selling same or substitutes of a product is an important determinant of the performance of the companies. However, firmly established companies enjoy competitive advantages in the market hence leading to their stable existence. Among businesses that enjoy these benefits include the Coca-Cola Company. Coca-Cola took part in securing of its competitive advantages in lots of ways. The company’s history is a huge determinant the space Coca-Cola occupies when you talk of competitive advantages between businesses. It is so since it has created awareness for a long time and still spends heavily in the advertisement procedure. The companies also brand help improved competitive advantages since it has existence and adjusted with the change of taste and presences making it universally accepted hence improving its stakes in the competitive advantages among other companies. Coca-Cola has also implemented strategies that have helped its existence for the more than 120 years of existence. These policies have given the company a comfortable seat in the world of stock exchange. All these strategies are: a) Putting up a flexible structure – Coca-Cola has been able to cut costs so as to deal with hardship times in the market. It is an activity that not all companies can do lead to their dissolution and making Coca-Cola enjoy competitive advantages. It is all made possible since Coca-Cola has a broad scope of capital that would...
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...Barriers to entry One of the 5 forces that shape the soft drink industry is barriers to entry. The Coca Cola company says on its website it is facing strong competition from well-established global companies and many local participants. For this particular industry, the competitive forces are benign, (favorable). Most of the companies in the soft drink industry are profitable. The Coca Cola Company's main competitors are Dr.Pepper, Nestle and PepsiCo. These companies definitely have the advantage over there competitors. In porters 5 forces, Porter refers to supply-side economies of scale, where firms such as the CCC and PepsiCo can produce at large volumes enjoy lower costs per unit because they can spread fixed costs over more units, employ more efficient technology, or command better terms from suppliers. According to Porter's article, supply-side scale economies deter entry by forcing the aspiring entrant either to come in the industry on a large scale, which requires dislodging entrenched competitors. How does a newcomer circumvent the barriers to soft drink industry? Perhaps create new distribution channels of their own. Creating a niche market for their drink in the form of marketing to a certain segment in the soft drink industry Rivalry Among Existing Players * The industry is not growing rapidly. The growth rate for the industry is not rapid; it is in fact relatively small. This makes it very difficult for new entrants to compete with the already thriving...
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...Corporate Governance The Board of Directors continued to establish benchmarks and oversight to ensure sustainability and momentum for the future. In addition, the Board of Directors have undergone training sessions with continuing emphasis on good governance and best practices, and updates on relevant issues which included competition law, corporate social responsibility and social networking. The formation of the Group Executive Committee (Group Exco) last year saw the active involvement of the committee members in reviewing the operational performance of the business units. During the year, five Group Exco meetings were held during which management presented their operational updates and sought advice on strategic and investment matters. In addition to the formal assessment of the effectiveness of the Board and Board Committee, Board peer review was included during the year. An important component of the overall management processes is risk management and internal controls. Faced with increasing price volatility of raw materials and packaging materials, the Board has established a procurement framework to safeguard and manage purchasing risks in the Group. Corporate Responsibility The F&N Group is ever mindful of its responsibilities towards the environment and community within which we operate. Environmental consideration is an integral part of our operations and numerous water and energy conservation measures have been initiated in our business operations. The group...
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...Smaller ones such as Altavista, Lycos and Excite do not seem to pose a direct threat to any of the biggest four. Bargaining Power of Buyers: Low * Advertisers recognize that the biggest providers together concentrate the largest number of searches, around 95% of the total. Therefore there is no room for negotiating advertisement prices. Also, even if a few users change search engine, it is unlikely to have any effect. Bargaining power of Suppliers: Low * The essence behind the search engines is their computer infrastructure. The biggest companies have such wealth that they can keep acquiring as much infrastructure as they want. Sources http://valuationacademy.com/porters-five-forces-in-action-sample-analysis-of-coca-cola/ http://www.smartinsights.com/marketing-planning/marketing-models/use-porters-5-forces/ http://searchengineland.com/market-share-bing-continues-small-gains-yahoo-stabilized-google-flat-162915 Competition from Substitutes: High *...
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...Coca Cola was one of the Leading brand during 1970’s, made to exit due to foreign policies. After re-entering a hiatus of 16 years, Coco Cola has reached to each and every corner of India. Being one of the largest beverage companies in India, Coca Cola is now available through length and breadth of India. An Introduction to Coca Cola India:- Coca cola is a well-known American beverage giant, which sells concentrated soft drink worldwide. The journey for Coca cola begins when Pharma Scientist John Pemberton first formulated Coco Cola recipe in 1886 in Columbus, Georgia. Later in 1889, Coca Cola formula and brand was sold to Asa Candler who then incorporated the company Coca Cola in 1892. Rest is a history as the world knows. Coca Cola is now currently offers more than 500 products over 200 countries. Coca Cola has first opened its bottling plant in New Delhi in 1950 and existed in the market till 1977. India was not the easiest place to conquer for Coca Cola during 1970’s. Domestic brands such as Limca, Thums up were dominating brands in India at that time. By the time Coca Cola exited Indian Market in 1977, it was one of the leading soft drink brand. In 1977, when Morarji desai led Janata Party came into power, new foreign trade act called Foreign Exchange Regulation Act (FERA) was implemented. Under this regulation act, foreign companies were made to dilute its equity stake to its Indian counterparts if they wish to remain in the country. However has refused to...
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...Running head: ENVIRONMENTAL SCANNING Environmental Scanning MGT/498 May 1, 2012 University of Phoenix Environmental Scanning Pepsi and Coca-Cola serve as prime examples of major competitors in the beverage industry and strive to be different although each company produces a similar product. With the popularity of these corporations at the zenith of existence, each one needs to develop and maintain a competitive advantage that will yield results to their favor. For the purpose of gaining a competitive advantage measurement guidelines will need to be implemented to cultivate effective strategic planning and measure the effectiveness of each plan. The intention of this study will be to examine each cola giant in order to describe the internal and external environments of each one and develop an understanding of how each company uses environmental scanning. Furthermore, a discovery of competitive advantages will be uncovered by examining strategies, such as creation of value and sustain, measurement guidelines, and the effectiveness of the measurement guidelines used by each company. Environmental Scan The environmental scan of Pepsi and Coca-Cola will involve monitoring, evaluating, and disseminating of information from the external and internal environments to the key people within the corporations (Wheelen, 2010). An addition, each company will need to evaluate current performance results, review corporate governance, scan and assess the external and internal environment...
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...external environments of three popular companies will be studied and contrast the ways in which companies analyze their internal as well as external environment and the strategies formed accordingly to get a competitive edge over others. Three popular companies selected in this paper are Coca Cola, Proctor, and Gamble (P&G), and Apple Inc. All three organizations are related to different industries and carry out different businesses. The competitive strategies and their measurement guidelines will evaluate their internal and external environmental perspective. Determine what competitive advantages each company has and what strategies each company is using. Coca Cola Company is known in the beverage industry, P&D is known in the consumer product industry and Apple Inc. is known for their technology. All three organizations are one of the top market giants in their respective industries and have competitive advantage over other firms in their relevant industries. Coca Cola strongest competitive rival in beverage industry is Pepsi. Both have competing efficiently in the market; however, Coca Cola has many competitive edges over others. Because of a competitive environment, Coca Cola has invested a large amount of effective competitive strategies in the market and to gain a...
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...Bottling business Compare the economics of the concentrate business to the bottling business: why is the profitability so different? (50%) Pepsi-Cola and Coca-Cola were both established at the very end of 19th century. Their history is more than a hundred years old and the size of these two companies is huge. Both of them work in the consumer goods industry providing beverages and other drinks to the customers (http://www.thecoca-colacompany.com/ourcompany/historybottling.html) . Pepsi and Coke dominate the market in this sector and form oligopoly in the US and even in the world market: "Among national concentrate producers, Coca-Cola and Pepsi-Cola claimed a combined 74.8% of the U.S. CSD market in sales volume in 2004, followed by Cadbury Schweppes and Cott Corporation." (Financial data for Coca-Cola, Pepsi-Cola, and Their Major Bottlers.) Their businesses are structured in the same way. They are the biggest concentrate producers. They sell ready concentrate to the bottlers which after convert it into the ready product which is brought to the shop shelves. Bottlers are situated all over the world as the principle of franchising is used. That greatly helps in the spread of CSDs across the globe. However, the returns received by concentrate producers differ from those received by bottlers for several reasons (Yoffie, 2007). Concentrate producers: Capital investment. Concentrate production business is less capital intensive than bottling. It requires less funds to be invested...
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...industries can sustain different level of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. A strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. In this paper I will use the five force model, as a Coca-Cola Company Business Manager to understand the Cola industry and try and develop an edge over rival firms. We will discuss each of the models individually and develop an understanding of where Coca Cola stands. Threat of New Entrants: Penetrating the soft drink industry is hard because of the established name of Coca-Cola and the other following reasons: Brand Image: Coca Cola invests enormous amount of money in marketing and advertising which has led to customer loyalty all over the world. People might not recognize Bill Gates or Warren Buffett if they are on a television show, but even a child who cannot read will recognize Coca Cola on television. We ran into a similar situation in the class room when the professor recognized a can of Coca Cola without even looking at the name printed on it. This makes it next to impossible for a new entrant to get in the market and compete with Coca Cola. Advertising: As mentioned above Coca Cola spend enormous amount of money on marketing and advertising, in 2011 alone the company spent $3.3 billion which makes it...
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