In this global world where the physical boundaries have been erased due to extensive international trade and healthy cross border relations, the companies are required to take a good look at their management practices. The scope of this business report is associated with discussion about the stakeholder management of the Coca Cola Company. The various prospective are to be discussed in order to identify about the strength and weaknesses of the company. The purpose of this whole exercise is to suggest and list some recommendations following which the company will be capable of managing with the changes required to improve upon the level of performance in management practices.
The business report also confers about the company traditions as well as the impact of efficient shareholder management on the rate of success and market sustainability. There are ways which will help in satisfying the needs and wants of the stakeholders and the entire discussion is to be carried out in the influence of the two strike rule which has helped the shareholders to become more empowered. This will also justify that why only the management practice of stakeholder management has been selected for discussion and why stakeholder management is essential in the contemporary business environment.
Organizations are believed to be open systems which are required to take part in several activities in which they are supposed to interact with the external environment. This interaction accounts for exchange of resources and opportunities. For this interaction to be performed in a successful manner there is need for the organizations to manage their practices at an extensive level. Management of the company practices indicates that it is essential for the organization to deal with the issues and flaws which concern any practice at any point of time. Management practices are to be carried out in a uniform manner and there must be integration in the approach which is followed to exercise the management practices.
The scope of this article is associated with discussion about the several management practices which are to be carried out within the scope of any organization and then selecting any one out of those practices which has to be dealt with any specific company selected in the scope of this report. The role of top management is believed to be much essential in identifying about the extent to which the company activities will lead to productive ways. This explains that the top management and the decisions made by top management will lead to the path of success or failure. Out of the range of management practices which are to be discussed in this business report but special emphasis is to be laid on one selected management practice of one specific company of a selected industry.
The management practice which needs to be discussed in detail is the stakeholder management and at the same time the selected organization is Coca Cola. For this very purpose the very first aspect to be done in this case is the analysis of the mission vision and objectives of this company. The role of all the management practices will be discussed in general for management of each and every company. The next section of this business report will discuss about the company background and its scope of activities.
Company Mission, Vision and Objectives
There are several companies in the beverage but Coca Cola has been selected for discussion in the scope of this business report. The reason for selecting this company is to increase the applicability of this business report to a great extent because the company is globally present in as many as 200 countries with almost four hundred products. The mission of the company is to provide each and every individual with an opportunity to experience happiness. The mission of the company was not predetermined when in the year 1805 the inception of the company took place indecently. The origin of the company was not planned and at first the beverage so served was also not cold but hot.
The company aimed to address the need for people and served them with a caffeine drink which was loved by people. The vision of the company is to deliver happiness to people all over the globe. This happiness accounts for development of trust and bonding with the target audiences. This will not only encourage the people for active participation but at the same time this will provide an opportunity to all to enjoy their life. There are certain objectives which have been defined in association with the mission and vision of the Coca Cola Company.
The very first objective explains that there is need to deal with the needs of each and every type of the consumer. Some of the consumers drink beverages to quench their thirst while on the other hand there are some who wish to maintain proper level of nutrition and energy in their bodies. This simply explains that a uniform product will not serve the purpose. There are three major categories of products which are offered by this beverage company and the very first and the most popular category of products are aerated cold drinks. This category appeals to masses without any apprehension and each and every person is included in the target audiences. The second category of products have been defined in a way that will appeal to people who want to quench their thirst in a nutritional manner but do not want to drink simple water. There are juices as well as other flavored drinks in this category.
Last but not the least the third category of products in the berage section has been specially formulated keeping in minds the sports persons. They want to quench their thirst as well as need to get some energy too and for this purpose high energy drinks have been offered to entertain this category of people. This objective states that there has to be a blend of varieties which are to be offered to people so that they can choose their preferable item from the various options which have been offered to them.
The next objective to be mentioned in the scope of Coca Cola Company states that the company aims for continuous expansion. This has led to this stage where the scope of this company has increased in an extensive manner and it has showcased its presence in as many as 200 countries with over 400 products. In all these three categories of products there are constantly new additions so as to maintain interest of the target groups.
The role of all these objectives has lead to the development of the company over these years and at the same time it can also be mentioned that the popular seven X formula and its super strong safeguard mechanism has also played a crucial role in identifying about the future of the company. In the next section of this business report the range of business practices will be discussed so that it can be stated that there are several other aspects than the product itself which makes the company sustainable in this competitive business environment as far as the long run approach is considered.
Range of Management Practices
The company is actively involved in various purposes which represent the needs and wants of people from it. At this point of time the term people so mentioned in this case is comprehensive in nature as it represents people both within the organization as well as outside the organization. All the management practices must be governed as well as administered in a way that they give good returns to people internal to the organization as well as those who are external to the organization. There is a range of practices which are to be administered under the scope of management and all these management practices are associated with each other. If all the management practices are carried out in an efficient manner then there is assurance that the company will be transformed as a market leader and this is what has happened with Coca Cola.
The various management practices which are performed in the daily course of time indicate that there is need to establish coordination among various activities as well as domains of the company. The role of company practices is essential in a way that they help in governing the rate of expansion, success as well as sustainability in future. All the prospective elements which account for disturbance are to be eliminated as well as all the manageable aspects are to be managed with increased efficiency. The role of company top management is the key force in this case. Some of the management practices which are to be covered in the scope of this business reports are listed below.
The very first practices and which has been selected for discussion with special reference to Coca Cola is the stakeholder management and it will be discussed extensively in the next section of this business report. The next management practice to be mentioned at this point of time suggests that the development of sales team is again an essential process. Development of sales team is essential because the sales team plays a crucial role in offering the products of the company to the target audiences. There is need to manage with all these developments as there is lot of cultural sensitivity as well as group dynamics involved in this process (Bennett and James 1999).
The sales team formulation requires following up certain natural phenomenon’s such as person job fit. The sales person are required to have belief in the product so that they can sell it further and they must have a charm and convincing power which engages the final consumer. So we can say that sales team formation is inclusive of tasks which aim at identifying people with such skills and at the same time procuring them and training them further in this direction. The role of sales team is not only limited to convince the consumers but at the same time they are supposed to execute the strategy which has been formulated by the top management. The role of sales team development is to be carried out in a way that will lead to development of group cohesiveness and team spirit in spite of all the competitiveness they share (Bakan 2004).
The management is required to acquire right type of people and at the same time appropriate mechanism of resource allocation will also help. The next aspect to be discussed in this case suggests that setting targets for performance is also an essential management perspective. There is interplay of several phenomenon’s in this case such as motivation of the employees, setting the key performance indicators as well as there is also need for identifying the type of people so right type of leadership practice can be implemented on them. At this point of time the role of personality types is quite essential as this allows identifying that the management needs to use hard management or soft management techniques to manage the people (Burritt 1997).
There are several tools with which performance targets can be set and one such tool which is popularly used by managements is the MBO. MBO stands for management by objective and it is believed to be great tool in setting performance targets because in this mutual inputs from both the superiors as well as the role occupant are obtained. Both the manager as well as the employee tends to outlay the objectives which are to be met in a certain course of time. This suggests that both have to mutually agree on what needs to be done. There is no need for imposing work on the employees and instead they are provided with an opportunity to select the objectives matching their skills. This increases both the productivity as well as efficiency of the employee and the company too (Bandura, Caprara and Zsolnai 2002).
There is one more management practice and it talks about launching a new product line and opening or closing a branch. Both these activities require management governance as they are associated with new event and nothing is predetermined bout the results. The target audiences are supposed to be convinced about the changes in the product line and they must be encouraged to accept the changes. The quality plan is also a form of management activity in which the company plans about the quality related issues in an extensive manner so that quality related defects can be reduced as well as the quality can be enhanced at the same time. The next management practice is of risk management and it can also be termed as contingency mapping or proactiveness of the company. In the highly turbulent business environment where the world has become a boundary less global village there are several risks which are to be administered by a company. There is need for a secondary plan of action and it must be taken into account by top management. Some other management practices which a company undertakes in the long run are social media management, career development, training, bullying, shift work or rostering. In the next section of this business report the stakeholder management practices of Coca Cola will be discussed (Beck 1993).
Coca Cola and Stakeholder Management
As described above there are several management practices in the purview of company operation but still only stakeholder management has been emphasized for specific discussion. The reason is much more active participation of stakeholders in the company operations as well as more empowerment given to them under the influence of two strike rule. The aspect of stakeholders is very vast and there are no second thoughts about the fact that it is essential for the firm to respond to the needs and wants of the stakeholders. The term stakeholder is an umbrella term and it accounts for several entities such as the company employees, consumers, shareholders, suppliers, sellers and many others. Pertaining to all these entities there are several needs and demands which are to be fulfilled on part of a company or else it will become obsolete in some time (Azzone, Brophy, Noci, Welford and Young 1997).
This aspect of the organization becoming obsolete might seem harsh but it is a reality in line with the two strike rule. This rule empowers the shareholders in an extensive manner that they have the capability to re-elect the board of directors as well as they can transform the whole constitution of the organization. At Coca Cola stakeholder management is believed to be the key for company success. The most essential element of stakeholder management at Coca Cola is open dialogue with a wide-range of external as well as internal entities. The company firmly believes that the stakeholders are to be managed efficiently because they will lead the company policies in a positive direction such as respecting the human and workplace rights. The approach of continuous and open dialogue with the entities will help the company in dealing with all the potential issues that too in a proactive and collaborative manner (Burritt, Hahn and Schaltegger 2002).
The Coca Cola Company tends to take key inputs form both the experience they have as well as the expertise they have gained in stakeholder management over a period of time. The first and foremost essential aspect to be mention in reference of stakeholder management suggests that there is need for passion to derive knowledge about the needs and demands of various stakeholders associated with the company. This will lead to have a clear cut idea of what is essential and what it not. This will help the top management in deciding about the essential activities which are to be performed in the scope of company activities (Cerin 2002).
At Coca Cola this is believed to be the mantra of stakeholder management and this reason being the company is constantly involved in the process of designing robust approaches to respect human and workplace rights. In addition with this it is also important to mention that all the parties of company interest are to be included in the purview of private, public and non-profit and labour relations. The sustainable impact of the company can be enhanced with effective shareholder management. The recommendations for further improvement will be mentioned in next section.
Conclusion and Recommendations
It is to be mentioned at this point of time that management of company practices is essential in one way or the other and out of all the management practices listed above the stakeholder management is crucial for organizational sustainability. At this point of time it is also be concluded in line with this discussion so carried out above that all the management practices are interlinked with each other and any of them cannot be exercised in isolation from other.
The concerned organization, Coca Cola, is keen in the process of stakeholder management but at this point of time there is need for certain recommendations. The very first recommendation to be mentioned at this stage states that the company must maintain brand image in spite of the categorization of the products. This will not only help the company to deal with competition in the external environment as well as will also help the company to deal with the internal weakness too. The second recommendation to be stated at this point of time states that the needs and demands of the stakeholders are to be identified as well as constantly updated so that there is no confusion or ambiguity about the whole scenario. If these recommendations are to be followed by the company in a comprehensive manner then the prospect of stakeholder management will be managed efficiently.