Signature Assignment: Strategic Plan – Implementation Plan, Strategic Controls, and Contingency Plan Analysis
About Your Signature Assignment
This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.
Writea 1,050-word minimum strategic implementation plan in which you include the following:
Create an implementation plan including:
Objectives
Functional tactics
Action items
Milestones and deadlines
Tasks and task ownership
Resource allocation
Recommend any organizational change management strategies that may enhance successful implementation.
Develop key success factors, budget, and forecasted financials, including a break-even chart.
Create a risk management plan including contingency plans for the identified risks.
Submit your assignment/Journal as a 7th edition APA Microsoft Word document to include a Title page, Introduction, body, conclusion and Reference page.
Weekly STR 581 Individual Feedback Guidelines 2020.docx
Formatyour paper according to APA guidelines.
Submit your assignment.
Resources
Center for Writing Excellence
Reference and Citation Generator
Grammar and Writing Guides
Learning Team Toolkit
Copyright 2018 by University of Phoenix. All rights reserved.
Use this space to build your submission.
You can add text, images, and files.Add Content
Details & Information
1
Potential Business, Corporate and Global Strategies for Coca-Cola Company
Name
Institution
Date
Potential Business, Corporate and Global Strategies for Coca-Cola Company
There are various factors behind the success of any company. Every company requires sustainable plans for an effective competition in the ever changing market (Seifzadeh & Rowe, 2019). The technique that a company chooses to use must ensure that the company is able to maintain its position in the market. This paper will evaluate some potential business, corporate and global strategies for Coca-Cola Company.
Potential business level strategies
Cost leadership strategy
Cost leadership strategy is one of the potential business level strategies that Coca-Cola Company can use acquire broader market segment and become more competitive. Cost leadership strategy focuses on the production of goods and services that are desirable to customers but at a lower cost to that of competitors. Specific factors that initiate the success of this strategy include process innovation, which entails newly designed distribution and production techniques (Claus Wehner, Giardini & Kabst, 2015). The recent application of this strategy is the use of sourcing strategy. Sourcing strategies are used to identify low-cost suppliers so that the purchasing firms can maintain low costs (Seifzadeh & Rowe, 2019). In this case, cost leaders’ purchases and materials must contain competitive levels of differentiation that create value for customers. Research shows that competitive advantage in inbound and outbound logistics can be successfully integrated into cost leadership than in any other strategy (Claus Wehner, Giardini & Kabst, 2015). Another advantage of adopting this strategy is that it promotes interdependency between the supplier and the outsourcing firm.
The effective use of this strategy can enable Coca-Cola Company to enjoy good returns, which are slightly above average despite operating under stiff competitive forces. Some of the risks associated with this strategy are that the techniques used in the production and distribution of goods and services may become outdated with time due to competitors’ innovation (Claus Wehner, Giardini & Kabst, 2015). When a rival in the market uses new technology, he/she would be able to produce goods and services at a cost lower than that of the cost leader. The competitive innovator might also offer differentiated features without interfering with the product price. Other risks involve imitation and putting much focus on the cost reduction by the cost leader in an attempt to understand and identify customer’s perceptions.
Focus Strategy
A focus strategy is a corporate strategy that serves the needs of a specific niche. The company may tend to operate in a specific geographic market or targets a particular buying group. By targeting a particular buying group, the firm may decide to focus on youths while excluding senior citizens (Seifzadeh & Rowe, 2019). A focus strategy also aims at a different segment of the product line. Here, the firm may choose to produce goods and services for professionals or those that can be used by anyone. For instance, the firm may use this strategy to produce soft drinks that can be used only by a particular population by manufacturing nonsugar beverages to elderly people or diabetic patients or produce soft drinks that can be used by anyone (Claus Wehner, Giardini & Kabst, 2015). This strategy is risky because when the opponent learns the secrets of the focuser, it will be able to provide similar goods or offer related services, thus leading to the splitting of the customers between the two firms. This will eventually lead to low returns by the original focuser.
Potential Corporate strategies
Diversification strategy
Coca-Cola should use a competitive diversification corporate strategy to reduce variability in its profitability since it’s able to obtain earnings from its separate line of business. The competitive diversification strategies that the company can use should be low-level and high-level diversifications. A low level of diversification will enable the Company to obtain more than 80% of its stockholder’s equity from its main business area in U.S and beyond. The company has 200 branches located across the world in different countries. It operates in only three products, soft drinks, beverages and drinking water (Seifzadeh & Rowe, 2019). The fact that the company is working in a few businesses and markets has enabled it to obtain remarkable returns because it can develop the capabilities for these diversified markets and provide high-quality services to its customers. Besides, the company will experience very few challenges in managing the few businesses that will enable it to obtain the economies of scale and effectively use its resources. Coca-Cola also will also maintain the narrow focus of diversification as a means of keeping the quality standards of the company for its esteemed customers. This strategy will also help the company to focus on the manufacturing of fast foods and other take away beverages thus enabling it to balance its resources (Seifzadeh & Rowe, 2019).
Coca-Cola Company will approximately obtain an additional 15% profit from other related businesses such as junk foods and take away beverages. The company produces Coca-Cola brand, Minute Maid and Dasani that are supplied to all parts of the world. The similarity on the company line of products around the world shows that the company shares its resources across its businesses with a related-constrained strategy (Seifzadeh & Rowe, 2019). Production of soft drinks alongside take away foods will enable the company to attract different customers since the customers will be able to choose from a variety of products. Coca-Cola Company will be able to use a related-linked corporate-level strategy, which will allow it to share fewer assets and resources between its businesses. The company will concentrate on transferring core competence and knowledge between its activities. The use of a related-linked diversification strategy will enable Coca-Cola Company to continually adjust the mix in its portfolio of businesses and make decisions towards managing its operations.
Potential global Strategies
Coca Cola is one of the fast-growing companies for soft drink and drinking water supply. The company can manage to expand its market to over three hundred countries across the globe within less than one hundred years in the market when it uses the global strategies discussed below.
Proper selection of exchange based on geographical location and psychic distance
Some of the potential global strategies that can make Coca-Cola Company more successful include proper selection of exchange based on geographical location and psychic distance. The company should not enter the market at ones. It should select sites with the majority of its target market such as Canada. Canada has the highest population of youths and teenagers who acts as the main target market for the company (Sattar, Ullah, Qasim & Warraich, 2019). The initial company expansion should be in North America and South America before it expands to other areas such as Europe, and Asia. Later, the company can explore other countries based on the idea it would have acquired from the initial expansion plan. The most preferred countries for expansion should similarities in terms of customers’ tastes and preferences and availability of technology.
Conclusion and Recommendation
For Coca-Cola Company, I would deem cost leadership strategy to be more appropriate. Cost leadership strategy is associated with the outsourcing of goods from suppliers at lower prices. After the products have been outsourced from a different supplier at a lower price, the cost leader will sell the goods at low prices compared to its competitions. Company operations involve primary logistics such as material handling, inventory control, warehousing, storing, and distribution, which accounts for the total portion to produce goods and services. The use of competitive advantage in logistics has been reported to create higher value with cost leadership strategy compared to another business-level approach. The choice of cost leadership strategy will help meet the mission of this organization because it focuses on minimizing the cost of production and maximizing the profit.
References
Claus Wehner, M., Giardini, A., & Kabst, R. (2015). Recruitment process outsourcing and applicant reactions: When does image make a difference?.Human Resource Management,54(6), 851-875.
Sattar, T., Ullah, M. I., Qasim, M., & Warraich, I. A. (2019). Role of Job Designs in Determining Employees Work Motivation in Banking Sector of Multan City, Pakistan.Review of Economics and Development Studies,5(1), 145-154.
Seifzadeh, P., & Rowe, W. G. (2019). The role of corporate controls and business-level strategy in business unit performance.Journal of Strategy and Management.
