Operation Strategy of Coca Cola
Coca Cola manufactures More than 21 different brands of beverages from bottled water to a good old coke, the most popular being coke. The Coca cola’s target market is basically everyone. However, their biggest focus are people who fall between he age group of 18-25 that accounts for 40% of the total age segment. In addition, they manufacture beverage for children like Bibo to beverages for older people like coke and soda water. Coca cola tries to satisfy anyone and everyone with the products they manufacture. Moreover, due to the vast target market, it is evident that they need a very large work force.
At the end of the company’s fiscal year 2011, coca cola companies total employees was 149 200. On average the turnover for in 2010 the turnover for 2010 was $35 119 Billion according to the annual review. Not Surprising that Coca cola is sold in more than 200 countries in the world. Although, Coca cola is not manufactured in all the countries in the world, it is sold almost everywhere. Coca cola’s ability to anticipate the needs of customers are how they are able to create value for their customers. In addition, the company tries to work closely with chain retailers and small retailers to help them reduces costs and improve sales.As with each successful company, there needs to be some sort of structure.
Coca cola’s process flow for bottling coke is as follows; 1. Ingredients are delivered to the factory 2. New and old bottles are sort into the various sizes 3. The bottles are then washed in a special detergent 4. Afterwards, the bottles are inspected, visually to ensure they are clean 5. All the cracked and chipped bottles are removed and destroyed 6. Each bottle is then electronically inspected to ensure they meet the standard 7.
All faulty , cracked, chipped or dirty bottles are removed and destroyed 8.Then the mixing and blending of the syrup takes place 9. Syrup is the mixed with concentrate 10. And then with carbonated water 11. The bottles are then filled with the liquid 12. And are then capped 13. Bottles are only then labeled 14.
After the bottles have been labeled, they are coded 15. The final inspection of the products takes place before packaging 16. Then the bottles are packaged according to the size and the bottle 17. After which the products are sent to the warehouse 18. Stock is rotated to ensure freshness 19. The products are then delivered to retailers 20. Lastly, products are sold to consumers.
Component 1: Process Flow We have identified that Coca Cola makes of a Continuous Process flow which allows them to produce more standardized products in a high volume. Below we will graph the process flow of the Coca Cola company and then elaborate more on the components which makes up their processes. Component 2: Operations Strategy According to Slack and Lewis, Operations strategy is the total pattern of decisions which shape the long-term capabilities of any type of operations and their contribution to the overall strategy, through the reconciliation of market requirements with operations resources.With the given definition of operations strategy we will also identify the competitive priorities of the Coca Cola company and how it relates to the above mentioned definition. Competitive priorities of an organisation includes a) low cost, b) high quality, c) fast delivery, d) flexibility and e) service. Operations strategy also depend on order qualifiers and winners, which relates to requirements for success in the market place. The above mentioned priorities are not always the same for every company.
Coca Cola may have different customer requirements then the next company. Therefore we have spoken to some customers who are buyers of the Coca Cola company as well as interviews with employees to see whether their opinion of customer requirements relates to what the actual customer wants. Coca Cola’s view on customer requirements: Customers and their requirements from the Coca cola company: Based on the research we have done regarding the customers requirements for the Coca Cola company we have find that they are very specific in what they require from the company.When we talk about customers of Coca Cola we don’t just talk about the customer that walks into the retail shop and buy a few quantities of the product. We are more focused on the retailers, the restaurants and the small businesses that buy this product in bulk. So when we are focusing on the customer requirements we look into what it is that they expect from the Coca Cola company. As our findings have showed, these customers are always seeking ways to reduce costs, improve/increase sales as well as provide better quality and more diverse products to the consumers who in the ends decide whether the product meets their needs or not.
Coca Cola works together with their customers trying to meet their anticipating demands and interests and to proactively deliver solutions to their businesses. As above stated, one can see that the customers (small business, restaurants and retailers) of the Coca Cola company are demanding in what they want as they also have consumers to satisfy. If the customers demands are not met then the consumer Component 3: Operational Capabilities Location Location is the geographical area where a given business is situated at . Depending on the location, the business may either be successful or unsuccessful.The business is situated in Parow, 57 Industria, Ring Road and the reason for chosen this specific Coca Cola manufacturer as it is close enough for us for interview purposes. I will now discuss the reasons for having the manufacturing business in such an area and whether the location is suitable enough for its given operations. Peninsula Beverages is a franchise Manufacturing company that operates under the name of Coca Cola.
As previously stated, they are situated in Parow Industria where the manufacturing takes place.