MANTISSAASSIGNMENT COVER

Student NamePRISCA BANGO

Student IDBBA - F1308 - 0322

Programme BBA PGSM

Module Subject:Operation Management

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Name of Lecturer:Dr. Roger

Assignment title:Coca Cola Global Operational Strategy

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Table of ContentTopicsPagesQuestion 1:Evaluate two aspects of operations management that Coca-Cola selected toimplement its global strategy.

Question 2:The company engages its bottling business associates to manufacture the products across the globe. Describe two strategic reasons for it to do so.

INTRODUCTIONOperations at Coca-Cola involve the management of the organizations resources; production system; deal with the design and management of products, processes, services and supply chains. It considers the acquisition, development, and utilization of resources to deliver the goods and services to the consumers. The companys management ranges at strategic, tactical, and at operational levels. Strategic issues include determining the size two and location of manufacturing plants; deciding on the structure of service and telecommunications networks; and the design of the technological supply chains. Tactical issues include plant layout and structure; project management methods; and equipment selection and replacement. However, there are reasons for Coca Cola continuous monitoring and control of all there line of production. This report will highlight some of the strategy behind Coca Cola mode of operation, implementation of their global strategy and why it engages companies around the world in bottling will be vividly discussed in the paragraphs below.

QUESTION 1One of the various aspects of operations management that Coca-Cola selected to implement its global strategy is the continuous refining of the requirements to insure that the bottlers conform to the most recent and stringent manufacturing processes. Coca-Cola believes in producing product to the highest standards by using processes that ensure consistent product quality and safety for the consumers. It constantly monitor and test their products to make sure that are of the best quality and will meet consumers expectations. Consistency and reliability is crucial to coca-cola business because they all want to give the same great experience with every Coca-Cola product consumed.However, to ensure such consistency and reliability, the Coca-Cola system, is governed by The Coca-Cola Management System (TCCMS), they are also know the Quality Control team. TCCMS is the integrated quality management program, which holds all of Coca-Cola's operations system wide to the same standards for production and distribution of all Coca-Cola beverages. It guarantees the highest standards in the management of product quality, the environment, and health and safety throughout the Coca-Cola system. TCCMS has endorsement from all leadership throughout the Coca-Cola system. It guides all the product safety and quality by integrating and aligning business and quality objectives with consistent metrics to monitor performance; integrating preventive action as a management tool, including more rigorous demands when planning new product and service introductions; incorporating Hazard Analysis and Critical Control Points (HACCP) into their system standards; and defining problem-solving tactic and tools to drive continuous product safety and quality improvements.To stay current with new regulations, industry best practices and marketplace conditions, Coca -Cola consistently reassess the relevance of all their product safety and quality guidelines in The Coca-Cola Management System (TCCMS). Given the increased awareness of the importance of food safety, not only in manufacturing but also throughout the entire supply chain, the company is refining its requirements to further ensure that TCCMS embodies the most recent and stringent manufacturing processes. In accordance with TCCMS. This strategy is been effective since Coca-Cola was established and still maintains a safety and quality system. Also, the company encourage a work environment of open communication and to effectively solicit and leverage innovative ideas, engaging in frequent dialogue with associates around the world. Such dialogue provides valuable information, increases awareness, promotes business strategies, shares successes and opportunities, and solicits employee opinions. For example, global associates and bottling partners have contributed ideas to major initiatives, such as our 2008 Beijing Summer Olympic Games activation. And, employee input was a key ingredient to our Company's Mission, Vision & Values.Another global strategy implemented by Coca-Cola company is the division of its management structure into five geographical group. The Coca Cola company realizes that it needs to be able to meet the ever changing demands of its customers. This is why the company pushed towards decentralization in the nineties and even more so in 2013.The organisation has three operating groups called Coca-Cola Americas, Coca-Cola International and Bottling Investments Group which is part of the continuous exercise. there are also operating groups divided by different regions such as Africa, Eurasia, European Union, Latin America, North America and Pacific. Each of these divisions is again divided into geographic regions. By allowing decisions to be made on a more local level, the organisation can quickly respond to changing market demands, and higher level management can focus more on long term planning. Certain division of the company such as finance, human resources, innovation, marketing and strategy and planning are centrally located within the corporate division of the company. Some of these functions takes place at lower level in each of the regions of the company, however most decisions are made at the top of the hierarchyFace-to-face meetings were held regularly at the local levels so employees could remain informed. Besides the use of teams and meetings, the intranet was refurbished to provide a source of real-time sharing of information. The use of complex integrating mechanisms is important in such a tall and wide organization. It is important that each function of the country is able to share up to date information quickly with each other. The organisation seems to be doing an excellent job of balancing standardization and mutual adjustment.This balance is essential because it allows Coca Cola employees some flexibility but also the organisation some predictability. The company structure is a hybrid of both mechanistic and organic models. The focal point of the Coca Cola company is on responsiveness. The complex integrating mechanism previously discussed are characteristic of an organic structure. The surveys and interview used by the company allowed information to flow from the bottom up and the intranet allows for information to be exchanged laterally. It also caused the Coca Cola company to pursue simplification and standardization. Centralization and high standardization are associated with a mechanistic structure.

Corporate Social Responsibility (CSR) is another strategy Coca Cola is using to implement its global strategy. The Coca-Cola Company and the U.K. Government of International Development (DFID) today announced a partnership to help young women living in Nigeria by providing them with the access to education and business skills that will help them succeed. Together, The Coca-Cola Company and DFID will invest more than 7 million to provide opportunities for these Nigerian young women. They are working in partnership with implementing partner Mercy Corps to launch the Educating Nigerian Girls in New Enterprises (ENGINE) program. ENGINE will empower more than 10,000 young women by providing them with training programs designed to build their financial, entrepreneurial and leadership skills. Upon completion, each woman has the opportunity to choose from a number of businesses and employment opportunities, including assistance in starting their own businesses as micro retailers of Coca-Cola products.Coca-Cola, believe that the company is as strong and sustainable as the communities in which we operate, and that investing in womens education and careers spurs economic growth and fosters sustainable development. This partnership demonstrates Coca-Colas belief that many of the worlds most pressing challenges can best be addressed by governments, business and civil society working together as partners to create lasting, sustainable solutions.The Coca-Cola Company is contributing to the program through 5 by 20, its global commitment to enable the economic empowerment of five million women entrepreneurs across the Companys value chain by 2020. Launched in four markets in 2010, 5by20 now has programs in more than 20 countries. By the end of 2012, approximately 300,000 women from around the world were impacted in total through the initiative.NUMBER 2The company engages its bottling business associates to manufacture the products across the globe. Describe two strategic reasons for it to do so.Coca cola strategic reason for engaging its bottling business associates to manufacture the products across the globe is because of its large pool of employees and capital required to set up on each country. According to Forbes in 2013, Coca Cola has about 130,600 employees around the globe with about 250 manufacturing plants or bottlers. The more than 250 bottlers provide the required capital for investments in land, buildings, machinery, equipment, trucks, bottles and packaging. Coca-Cola may not be in a position to invest, manage and control on these facilities if they were to do all these by themselves. Coca cola decentralize its organisational design into continents and to the national levels for easy management and supervision of employee performance and to understand consumers need and concerns. Apart from the capital intensive nature of the business, Coca Cola want to glocal their strategy by using things peculiar to each environment for example, using celebrities from the region as the product ambassador. However, there are some countries policies that is against Foreign Direct Invest which may force Coca Cola to go into Joint ventures with local investors. Furthermore, employees from each region are managed and rewarded the codes of conduct of their jurisdiction. Despite all this, the company always instil their product standard and quality on every of its manufacturing plants. Coca Cola strategy of bottling in different part of the world could also be because of the cost involved in exporting to the location.

Another vivid strategic reason behind Coca Cola engaging its business associates to manufacture the product across the globe is to focus on the software which includes the production system that will ensure highest quality and consistency standards will be maintained by bottlers. Growth through acquisition has factored heavily in the more than 100 years of Coca-Cola Bottling Company, and the company was suffering from little or no business process standardization. The Coca-Cola Bottling Company integrate SAP software into their operations to ease the path to future standardization. With SAP in day-to-day operation, information now only has to be entered once in one place and it becomes available everywhere and business analytical report can be find in one place and everything needed. On the manufacturing side, by improving the production scheduling and forecasting, inventory levels drop considerably, which in turn reduced the need for working capital. This alone has helped offset the cost of the solution. Coca Cola only allocate the physical facilities to the bottling associates and offer them Product manufacturing assistance, quality control, plant and equipment design, marketing and personnel training are some of the areas in which the company shares its expertise to its business associates. The company engage in providing intellectual property ideas because it is more concerned with standardization and uniformity of the all its products around the globe.However, the huge investment and commitment of the bottlers to achieve their business growths helps to meet Coca-Colas global strategic goals in terms of worldwide production, supply chain, sales and marketing. The Coca-Cola System, the system business model delivers value to the company and to its bottling partners. By working together, the system focuses on growing the overall profits from the beverage category in order to provide strong returns. To achieve a safe working environment, the company implements a rigorous set of controls to manage the operational risks in the infrastructures, and manufacturing processes. The company also sets up an internal audit process in ensuring the effective implementation of the operational controls and management routines. The use of the internal audit control is to monitor production activities and employees performance at all time, so as to determine if routine are still carried out as it was laid in the modus operandi of the company. This method keeps employees and bottlers on their top performance all the time to avoid breach in agreement. However, the company only recognized external audit firms to assess the compliance status of the manufacturing operation with applicable laws and regulations; company occupational safety standards; health regulations; and loss-prevention policy.

CONCLUSIONThe Coca-Cola Company has been a dynamic company, always moving to anticipate and meet the present and future desires of customers and consumers. The world is changing with blinding speed in countless ways: technologically, educationally, culturally and economically. Coca-Cola Company has been able to meet these changes seeing them as new opportunities. They have taken a global approach to different countries trying to reach as wide market as it could, giving them quite standardized products, which are produced locally. With the changes taking place in the global market, companies must try to remain as close to the customers and consumers as it can in order to meet their different desires in the best way. Due to that the Coca-Cola Company has also changed its strategy from global marketing and local manufacturing to local marketing and local manufacturing. This will help the company to differentiate its products in more specific way, which will result in meeting the different needs and desires of consumers and the market situation in a particular country as well.

REFERENCESFinancial Times "Coca-Cola has tended to keep its bottlers at arms length" (Accessed 30th June, 2014),Coca-Cola Enterprises homepage "The World's Largest Bottler" (Accessed 30th June, 2014),Coca-Cola Hellenic - geographic footprint Interactive Map. (Accessed 30th June, 2014),David T., (2010). Professor of Marketing Strategy at the Haas School of Business at the University of California at Berkeley