Internal and Environmental Scan
Organizational success in this age is driven by innovation. A company that invests appropriately in innovation is sure to have both a competitive and comparative edge over its competitors. Technological advancements have made the customer change focus from the conventional shopping techniques. Nowadays consumers are increasingly interested in an entity’s internal business environment, particularly its resources, capacity, and competencies. Investors are typically inclined to invest in an enterprise where innovation is continually aimed at improving the mentioned three elements, which explains why relatively new companies such as Apple Inc. and Google Inc. are raking in billions in profits and are widening their customer base. Another firm that has managed to enhance its resources, capacity, and competencies effectively is the Coca-Cola Company. Despite being one of the oldest firms around, the soft drinks giant has managed to remain relevant and compete effectively with the newer enterprises a run for their money.
The Coca-Cola Company boasts of three strategic resources namely tangible, intangible, and human resources. The tangible ones are the entity’s assets and financial infrastructure. The corporation’s value as of 2013 was a staggering $158.8 billion while its profits in 2017 were $35.4 billion (“The Coca-Cola Company Reports,” 2018). The company utilizes this massive financial infrastructure to break into new markets, build its brand and infrastructure, and develop close partnerships to widen its distribution network. The enterprise’s intangible resources include its technology and global reputation. The company is renowned for its investments in modernized machinery. Its production process is almost fully automated from start to packaging for delivery. This strategy enables the firm to control the speed of production; it can accelerate the process or decelerate it respectively to maintain their drinks at a stable quality. The business can also effectively control its output to match projected sales volumes and demand. The entity has also invested in hybrid trucks for its transportation activities, a move that only enhances transportation but also saves fuel and reduces the company’s overall carbon blueprint. One of the company’s flagship innovations is the PlantBottle technology consisting of bottles made entirely from plants (“PlantBottle,” n.d.). These bottles have a high decomposition rate and can be easily decomposed.
The company’s human resources is a key trait that helps it succeed and keep track with changing consumer tastes and preferences. The enterprise continually invests in skilled labor and ensures that its workforce is continually motivated. It also strives to improve its workers’ well-being by building recreational facilities such as gyms. It also offers attractive salaries and hefty stipends. Few businesses have diversified their workforce the way Coca-Cola has. The entity has a presence in all the globe’s continents and has workers from multiple races and cultures. As such, it can capture brilliant minds from all over the world. Coca-Cola’s distinguished capabilities include financial, efficient organizational, marketing, and product. As mentioned, the corporation can virtually do anything since it has the financial muscle.
Coca-Cola’s organizational capabilities are unique and highly digitalized. Delivering over 500 soft drink variants and managing over 100,000 workers requires a very sophisticated system considering the company does not experience any lags. All departments within the business’ organizational structure do their best to achieve the best overall outcome. Coca-Cola’s marketing strategy is comparable to none. The company has over the years produced some of the most memorable commercials in history. It has partnered with celebrities, athletes, and even acclaimed organizations, including FIFA, to market its products on a global scale. Its marketing team seems to have a comparative edge over its competitors, especially in advertisements. The entity’s key competencies comprise of its strong brand name, customer loyalty, and its efficient manufacturing and distribution networks.
Application of Private Sector Strategies to the Public Sector
It is paramount to foremost understand the point of difference between a public entity like the Foods and Drugs Administration (FDA) and a private entity such as Coca-Cola regarding their main objectives. The Coca-Cola Company’s main goal is profit making, all other objectives are secondary and aimed at achieving the main goal. The FDA’s main objective, on the other hand, is improving the social and economic well-being of the people (Alibašić, 2018). Its main source of funds is the government, and it has a sure budget year in year out. The Coca-Cola Company must strive to make profits otherwise it may end being liquidated. As such, these two entities utilize different strategies to achieve their main goals. It would be unreasonable to adopt private-sector ideas to the public sector.
The FDA and similar organization cannot invest in a global market or use a sizeable amount of its funds on marketing because most citizens are already aware of these services and in most cases know where to find them. Secondly, using these strategies may lead to a budget deficit that may hamper service delivery. The entity could also end up in trouble with the lawmakers who could term this as mismanagement of funds. The FDA, therefore, has to stick to its prime motive of service delivery and leave the motive of profit maximization to the private players.
Alibašić, H. (2018). Sustainability and resilience planning for local governments: The quadruple bottom line strategy. Cham, Switzerland: Springer.
“PlantBottle.” (n.d.). Coca-Cola Company. Retrieved from https://www.coca-colacompany.com/plantbottle-technology
The Coca-Cola Company reports strong operating results for fourth quarter and full year 2017; Achieves or exceeds all full year guidance. (2018, February 16). Coca-Cola Company. Retrieved from https://www.coca-colacompany.com/press-center/press-releases/the-coca-cola-company-reports-strong-operating-results-for-fourth-quarter-2017