The objectives of the strategic plan are to build upon the already successfully developed business structure for Coca-Cola, and continue a successful path for the growth of the business. The strategic plan will allow Coca-Cola to create goals and more value for the business and its brands.
The functional tactics for the strategic plan focus on activities that can be accomplished as soon as possible. Coca-Cola will separate each strategy recommended and develop upon them immediately. In the generic strategy Coca-Cola will analyze cost and differentiation of their current markets and provide feedback of the current conditions. In the grand strategy Coca-Cola will analyze the current markets and regions for necessary changes or innovations that may be necessary for growth. The global strategy will focus on supporting our current global markets while finding new global markets to move into.
Action items for Coca-Cola are tasks that need to be addressed immediately. The current action items for Coca-Cola are the investment in technology and more efficient logistics to support the analysis of costs for the focus strategy. Cost leadership will require Coca-Cola to find lower priced ingredients for the manufacturing process or purchasing the ingredients in larger bulk for a lower price. The grand strategy will require immediate action upon the current markets with advertising and innovation for domination and growth. Coca-Cola will also focus in on organizational operations to reinvest in employees and the company.
Milestones will include monthly progress reports for each strategy, the successful execution of action items, and the overall success of each strategic plan and its goals for the company. The deadline for the strategic plan’s full implementation will be 2 years after the start date. The strategic plan will be reevaluated and adjusted each quarter as necessary.
Tasks will be given by the CEO to each of the team members as necessary. Each team member will be placed on one of the strategic plans exclusively with another member and expected to work cohesively to carry out the plan. All team members will collaborate each quarter and aid each other as necessary on all plans.
Coca-Cola currently has multiple resources that will allow the successful implementation of the strategic plan. All team members are able to allocate resources as necessary to their strategy. Each quarter the team will approve the initial plans of resource allocation and be available for collaboration if necessary to reevaluate.
Change management strategies are recommended for The Coca-Cola Company which can improve the success of the implementation plan. The organizational change management strategies to be applied for The Coca-Cola Company are a combination of generic, grand, and international strategies as well as value disciplines. Generic strategies in the cost leadership strategy will provide The Coca-Cola Company with product positioning through strategic pricing methods as compared to key competitors in the industry by reducing production costs as well as producing products on a large scale to minimize operating costs. Value disciples in operational excellence is another strategy to be applied. Operational excellence has key drivers that are geared towards product volume, costs, and efficiency. This strategy has the potential to streamline the processes as well as standardization of products to reduce costs which works well in conjunction with the focus leadership strategy.
Grand strategies are aimed in achieving the long term goals and objectives of The Coca-Cola Company. While there are different types of grand strategies that are available, for The Coca-Cola Company these grand strategies are focused on growth. This can be achieved by implementing growth strategies that focus on expansion through operations, product development by modifying existing products that can be remarketed to consumers as well as introducing new products to consumers to earn premium margins for new products and horizontal integration by acquisition growth of similar companies.
Because The Coca-Cola Company operates in the domestic market and the international market, applying international strategies for the company should be considered. International strategies should focus on globalization. Since The Coca-Cola Company has already established recognizable logos and trademarks as well as the foundation of the company operating in soda production, The Coca-Cola Company can maximize on efficiency along with continued investment in the company as a global strategy.
Establishing a risk management plan as well as identifying any risks are key to carrying out the implementation plan. For The Coca-Cola Company, there are different risks that are presented that must be addressed early on to minimize its impact and any complications that can arise further along the process. The risk management plan will identify and prioritize risks including establishing set measurements to reduce those risks while capitalizing on the opportunities that are available. The risk management plan can be considered a continuous process for The Coca-Cola Company by monitoring the identified risks and other external factors that can influence the soda market as well as the operations of The Coca-Cola Company negatively. Some of the risks identified are new regulations imposed by governments of developing or current markets that restrict marketing and production or require additional regulations for soda production, economic downturn, oversaturation of the local market, patent infringement concerns for new products, and poor product performance.
Risks that deal with any major changes to the operations and process of soda production and marketing will need to be adaptable for The Coca-Cola Company. Changes that come through new laws and amended acts dealing with government body regulations such as the Food and Drug Administration or the European Food Safety Authority will have to be taken into consideration to meet compliance. Economic downturns are another risk that needs to be addressed as economic downturns can pose a threat to the operations and sales of the company. Certain procedures will have to be set into place for possible shifts of the country’s economy such as reducing the amount or resources, product volume, and reevaluating budget criteria needs.
While the soda production is a large industry with major competitors, oversaturation is possible and can take place in the local market with numerous competitors offering the same product. The Coca-Cola Company needs to look at overall expansion of its products to different countries with a wider consumer market and consider offering new products in other segments of the market.
Patent infringement concerns are another possible risk when entering an industry with competitors offering similar products. The Coca-Cola Company will need to ensure that any new or enhanced product ideas are patented and address any branding concerns. Poor product performance is the final identified risk in the risk management plan. As with any product on the market, a life expectancy is established to determine the longevity of the product for consumers. While carbonated drinks can be considered a staple of consumer beverages, some carbonated beverages may not maintain the attention of consumers who may move to a different brand of carbonated beverages. Image plays a role in this risk in addition to product taste which can either cause strong or poor product performance as well as understanding consumer responsiveness to soda products in different countries.