Delivery in day(s): 5
Diploma in Business (Marketing)
Unit Number and Title
Unit 19 Marketing Planning Coca Cola
The marketing planning coca cola report has been developed over the strategic management and strategic planning. Balance score card has been used for the evaluation part. The strategic analysis of an organisation has been done through using the models and theory. The practical issues in accordance with the organisation the theory have been implemented. Through this report synthesis of the solutions of the issues also discussed. The concepts and the models are used for discussing the organisational contemporary issues and strategic management. The theoretical model of balance score card is used by reflecting the practical situation. The theory is also used for predicting the outcomes of the practices.
Balance score card is the strategic management tool which has been used for evaluate the performance of the business. It is also referred as the performance metrics. The concept has been first introduced by Norton and Kaplan in 1992. This metric has been used within the process of the strategic management in order to identify and enhance the internal operations and functions of the business and the external outcomes of these functions. Through this metrics the performances are measured and feedbacks are provided. (Tayler, 2010) Quantitative results are the main purpose of this metrics which is done through data collection. The information has been interpreted by the executives and managers. It helps them to make better decisions for the profit of the organisation.
Different industry and business along with private and public sector has been using this metrics in order to align their business activities in accordance with their strategy and vision. The organisations also use this metrics for improving their internal as well as external communications. The managers use this metrics to measure the overall performance of the organisation over the strategic goals. It is also referred as the performance management framework which has been used to add measurements of the non-financial performances. (Kaplan, Norton, and Rugelsjoen, 2010) With the help of this metrics the managers are gaining more balanced overview of the performances of the organisation against the organisational objectives. The framework has been used within the strategic planning system. The managers get the idea not only over the performances but also the measures which would be required to be done in order to improve the current performance level. The current strategies are executed through this metrics.
By Kaplan and Norton the balance scorecard has been described as the measurement model for traditional financial aspects. The balance scorecard has been used for making value in the future financial perspectives through the investments. (Hoque, 2014)
Perspectives: Four separate areas are used within the metrics to provide proper data of improvements in thesefour areas in order to make successful approach. These four legs involve learning and growth, processes of business, finance and customers. By viewing the organisation from these four perspectives and by collecting data and analysing the information the metrics can be developed. (Tjader, May, Shang, Vargas, and Gao, 2014)
Learning and growth perspectives: the training of the employees is being included within this perspective for adopting the corporate culture within the organisation and changing the attitudes of the employees towards the common goal achievements. The corporate cultural attitudes which are encouraged within the employees through the training are related to both the corporate self-improvements and individual improvements. In the current situation within the market the business can be improved through the knowledge. This perspective refers that the respiratory of the knowledge is necessary for the improvements of the process and the human resources . In the current climate of the technological changes the skills of the workers or the staffs within the organisation should be improved through continuous improvements. The learning will lead the workers towards the growth of the skills.The learning is better by the training which has been referred by Kaplan.(Kaplan, and Anderson, 2013) Through the improvements of the knowledge the high technological tools can be included within the system for better performance as well as the handling the conflicts will be eased. By including the technical aspects learning process can be enhanced to higher performance system.
Business process: the internal processes within the business have been referred in this leg of balance scorecard. The metric which has been based on this perspective, is mainly used for the management of the business processes. The business processes such as the requirements of the customers, how the business is running, production and the service development according to the requirements etc. As the managers and the executives know the internal processes specifically this metrics has been conducted by them.
Perspective of customer: the importance of the requirements of the customers has been currently the main target of the managers. The customer focus has been increasing in the business activities. Satisfaction of the customers is the main intension for managers in order to make the success of the business activities. (Tayler, 2010) This perspective indicates better performances of the organisation in order to survive within the market as poor performance can impose as threats for the business. The poor performance has been referred by this perspective as the prime indicator of the decline of business profit in future. In terms of types or kinds of business processes through the services or products are being provided and kinds of customers to whom the services would be given are used as the parameters in the metrics for analysing the customer satisfaction.
Financial perspective: the corporate database implementation has been required for the financial metrics. The financial database has been referred by Kaplan and Norton for making the process automated and centralised. Risk assessment and cost-benefit data are two efficient model in the respect of financial perspective. Through these concepts the financial analysis can be done. The financial data is needed for the improvements of the business processes. (Tayler, 2010)
The balance scorecard has strength over other related metrics. The metrics has been representing the organisational goals within a single chart. The balance scorecard has been providing the opportunities to the organisations to link the gap between the daily activities and the mission statement. The balance scorecard increases the process improvements processes and the innovation. The customer requirements are given equal important for the service and product development through these four perspectives. The balancescore card has been improving the business strategies for achieving the business goals. Different business goals arerelated to each other such the sales goals and marketing goals are related. These relations are explained through the balanced scorecard with proper measures. (Asosheh, Nalchigar, and Jamporazmey, 2010) Thefinancial goals and their relations with the profits increased by the sales goals are properly measured through the perspectives of the balance score card.Thebalance score card is the easy process which can be used by the managers with easy methods. Each perspective provides proper and appropriate feedbacks over the strategic management and planning execution. The balance score card has been making the balance between the prior objectives and current processes. Apart from financial sustainability approaches balance score card also provide information over the other aspects like environmental and social aspects and integrate these.
There are certain limitations within the balance score card approaches. These are:
The time dimension has been neglected by the Balance score card. Within the cause and effect relationship provided by balance score card metrics the time has been neglected. The role of time in the cause and effect relationship has been omitted which resulted in the conflicts in the completion of the processes. The balance score card also suffers from lack of validation. The information or the data which has been chosen for metrics can vary. The balance score card cannot make any validation overt the data as a result the metrics cannot produce relevant data. As balance score card do not poses any mechanism in order to maintain the relevance within the measures the metrics lacks of validation. There have been conflicts within the different focus areas within BSC metrics. The balance score card also has lack of integration within the operational levels and the management levels.(Sundin, Granlund, and Brown, 2010) This lack leads to the hurdles within the management of the processes. The absence of the limitations within the integration leads to the limitations in the use within the lower levels. This leads to the failure of the strategic planning. The absence within the coherence in different levels of the organisation by the balance score card will lead to the hurdles in complex organisational processes. The most important weakness of balance score card is that it has been mainly focusing over the internal aspects of the organisation. The balance score card is not able to provide proper information about the competitive movements. The management has to evaluate through other processes about the external impacts over the balance score card implementations. The role of the shareholders to certain extent is not incorporated within the metrics and perspectives of the balance score card. The concepts of the BSC are not proper enough to relate with the corporate sustainability. (Sundin, Granlund, and Brown, 2010)
In current situation the balance score card has been relatively facing certain issues while comparing with other similar tools. It has been used as the high performance management tools. Considering the discussion above it can be concluded that though the balance score card has certain issues within the usages it has become the legislative requirements for the private and public organisation. Management has facing shortcomings on using the balance score card within the environmental and social issues while the financial measures can be improved through it.
It is the largest beverage company in the world. It has been claiming 47% of the global market. The company has been operating within different countries. The company has been offering different products based over the market demands. The strategy of specialisation has been used by Coca Cola Company. Through diversification in the production the organisation has been offering different products. It has been operating in more than 200 countries.
Growth strategy: the company has been using different growth strategies- such as driving global beverage leadership, hastening the innovation, leveraging the balanced geographic portfolio of the company. (Chen, Yang, Chen, Chen, and Chen, 2010)
Mission statement: the organisation of Coca cola has their own mission statement which has been used to declare the purpose of the company and its standards of services. The mission statement of coca cola comprises that the company is dedicated to provide value through their products and services and make differences in the beverage market. The products are designed to provide moments of happiness and to refresh the taste.
Vision statement: the vision statement has been used as the road map which has been guiding the aspects of the business. The accomplishment measures and the quality standards are discussed through the vision statement. The working environment should be positive to attract people to the organisation. The network between the shareholders, suppliers and the customers should be nurtured for maintaining the standards and quality in productions. The organisation has been developing their vision statement for becoming more effective and productive. (Werther and Chandler, 2010)
Proposed mission: with operating over six main segments like America, Africa, Europe, Eurasia as well as pacific regions the organisation has been opting for making its operations fast moving towards the success. The main approach of the organisation is to satisfy the needs and requirements of the customers through making refreshments in the quality. Coca Cola has been maintaining the social responsibilities by being a responsible corporate organisation. In order to sustain in the long run the organisation needs to become more concern over the public image and social responsibilities. The organisation has been opting for the survival within the global beverage market. (Bach, and Allen, 2010) Technology adoption has been the main concern of the organisation in order to increase both production and quality.
External assessment: Coca Cola has been gaining 42 % market share in 2010. In the external assessments the opportunities and threats within the business environment should be analysed.
Internal assessment: in the balance score card the internal assessment has been needed significantly. Through the internal assessment the strengths and the weakness in the processes of the organisation can be understand.
The balance score card model has been important aspect for the business operations of Coca Cola. The company has been developing their objectives to have better growth in the future perspectives. The organisation must analyse the four perspectives. The customer focus should be needed in order to have the customer satisfactions. The human resources of the organisation should be lead to the learning and growth perspectives. Through the learning and growth measures the skills of the current human resources can be developed. The current technologies can be adopted by increasing the ability of the workers. The growth in the production and quality can be increased.The metrics must be evaluated through the evaluation of the business process perspectives.(Bach, and Allen, 2010) The managers and the executives can be able to evaluate the business processes and needed improvement requirements through the balance scorecard metrics. Customer focus has been the main purpose of Coca cola as it has been operating in the service sector. By analysing the demands and the requirements of the customers the organisation can make changes in the product development stages and quality enhancements. Customer satisfaction measures and the current service levels should be included within the processes. Financial perspectives in needed for the understanding of the growth in the global market.
Through the balance score card metrics the organisation can be able to create a line of energy drinks which would extend the product line and increase the marketing in different regions. The balance score card can be used by the managers and the executives of the Coca cola company with successful measures through collecting the data and the information about the customer’s perception and current market situation. In order to make the approaches more enhanced the organisation can also make analyse the current business processes through the SWOT analysis. The diversification approaches can be helpful to increase the product lines and also customer satisfaction. (Grant, 2016)
The organisation should use integration strategies. The integration within different suppliers is needed for the success of the business and production. The bottling and marketing processes must be integrated by purchasing CGE. It would be helpful to generate the market development strategies. Through product and market development the worldwide leadership can be established within beverage industry. Through diversification the competition can be adapted by the organisation. Market penetration is also required within the global international marketing approaches.The organisation and management should carefully study the external forces for the using the balance score card with better perception. The quality should be maintained within the production.
It can be concluded that the company should maintain their strategic planning and strategic management through the balance score card approaches. The four perceptions should be analysed for developing the strategic. The strategies can be broken down through the balance score card for make proper focus over the strategies. Through the analytical processes of balanced score card the organisation can analyse the internal strengths and weakness and develop better approaches. Though the internal assessment is needed for the balanced score card the external assessment is needed for company social responsible approaches.
Strategic management and strategic planning is required for the organisations in order to make proper business and making improvements in the approaches. Through the concepts and theories of the frameworks and models the organisation can apply enhanced strategies for success of the business. Through balanced score care metrics the organisations are having better performance review. The performance management system or balanced score card is used by the organisations in order to understand the areas where the improvements are needed. Coca Cola Company can have adequate benefits by using the balanced score card perspectives. In the current situation in order to maintain the sustainable approaches the social and corporate responsibilities should be performed by Coca Cola.
Asosheh, A., Nalchigar, S. and Jamporazmey, M., 2010. Information technology project evaluation: An integrated data envelopment analysis and balanced scorecard approach. Expert Systems with Applications, 37(8), pp.5931-5938.
Bach, D. and Allen, D., 2010. What every CEO needs to know about nonmarket strategy. MIT Sloan Management Review, 51(3), p.41.
Chen, C.Y., Yang, Y.F., Chen, C.W., Chen, L.T. and Chen, T.H., 2010. Linking the balanced scorecard (BSC) to business management performance: A preliminary concept of fit theory for navigation science and management. International Journal of Physical Sciences, 5(8), pp.1296-1305.
De Wit, B. and Meyer, R., 2010. Strategy synthesis: Resolving strategy paradoxes to create competitive advantage: Text and readings. Cengage Learning EMEA.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Hoque, Z., 2014. 20 years of studies on the balanced scorecard: Trends, accomplishments, gaps and opportunities for future research. The British accounting review, 46(1), pp.33-59.
Kaplan, R. and Anderson, S.R., 2013. Time-driven activity-based costing: a simpler and more powerful path to higher profits. Harvard business press.
Kaplan, R.S., Norton, D.P. and Rugelsjoen, B., 2010. Managing alliances with the balanced scorecard. Harvard Business Review, 88(1), pp.114-120.
Sundin, H., Granlund, M. and Brown, D.A., 2010.Balancing multiple competing objectives with a balanced scorecard. European Accounting Review, 19(2), pp.203-246.
Tayler, W.B., 2010. The balanced scorecard as a strategy-evaluation tool: The effects of implementation involvement and a causal-chain focus. The Accounting Review, 85(3), pp.1095-1117.
Tjader, Y., May, J.H., Shang, J., Vargas, L.G. and Gao, N., 2014. Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model. International Journal of Production Economics, 147, pp.614-623.
WertherJr, W.B. and Chandler, D., 2010. Strategic corporate social responsibility: Stakeholders in a global environment. Sage Publications.