Research Report
On
“Problem solving and Decision making of
Coca Cola Company”
Submitted By:
Ranjan Deuja
Runnata Sharma
1.1 Executive summary
This report has been prepared with a specific purpose in mind. It outlines the history
and current scenario of coca-cola company globally and locally, management
problem of a company along with specific research questions which address the
management problem/decision. The first part of the study takes us through the
managerial problem of coca-cola company and how the management
problem/decision should be managed.
The report contains a brief introduction of coca-cola company, detailed analysis of a
company to understand managerial problems by decision making and problem
solving tools. We have performed different decision making strategic factors such as
SWOT Analysis, Brainstorming, in order to identify the management problem of
coca-cola company, develop a research program and recommend some tips and tricks
to improve the performance of coca-cola company.
The main objective of this research is to study and analyze the management problem
of a company and how management problem/decision should be managed efficiently.
The study also aims to identify market analysis of coca-cola company and find out
different factors affecting the company’s performance and growth. Another objective
of this report is to analyze the findings from secondary source of data and Identify
alternatives and make recommendations to improve the performance of the
organization.
Table of Contents
Executive Summary………………………………………………………………….1
1.0 Introduction………………………………………………………………………2
2.0 Overview of Coca Cola Company………………………………………………3
2.1 Coca Cola’s vision Statement……………………………………………
2.2 Coca Cola’s Purpose…………………………………………………..
3.0 Management problem of Coca Cola company…………………………….
4.0 Research Questions………………………………………………………….
5.0 Research Data and Methodology………………………………………….
6.0 Overview of Strategic Management………………………………………
6.1 Factors affecting strategic management issues shown in Figure………
6.2 Global Strategic management issues of coca-cola company
7.0 Objectives of the study………………………………………..
8.0 Overview of the problem solving and Decision making…………………..
8.1 Problem solving process shown in figure………………………………
8.1.1 Identify problem
8.1.2 Generate Alternatives
8.1.3 Evaluate and select Alternatives
8.1.4 Implement and Follow up solution
9.0 Problem solving/Decision making Tools used By Coca-Cola Company………
9.1 SWOT Analysis
9.1.1 Strengths in the SWOT of Coca Cola
9.1.2 Weakness in the SWOT of Coca Cola
9.1.3 Opportunities in the SWOT of coca cola
9.1.4 Threats in the SWOT of coca cola
10.0 Findings of Coca cola company
11.0 Recommendation to improve Business performance
12.0 Conclusion
1.0 Introduction
Each and every decision whether it is large or small is critical to the success of
business. Decision making is the mental process of selecting the best
alternative from a set of alternatives. Every decision making process brings an
outcome which could be in the form of action, recommendation or an opinion
Precisely, the decision-making process involves identifying a goal, finding
necessary relevant information and comparing the alternatives in order to
make a final optimum decision. Accordingly, decision making involves
processes as such avoiding, problem solving and problem seeking. Identifying
problems and selecting best solutions to the problem would help to solve
management problem of business enterprises. This report will discuss about a
management problem of coca-cola company and how that problem will be
solved by the organizational management.
https://courses.lumenlearning.com/boundless-management/chapter/decision-
making-in-management/
2.0 Overview of coca-cola company:
Coca-Cola Company is one of the world’s leading manufacturer, supplier and
marketer of non-alcoholic beverages and syrups worldwide. Coca-Cola is the
company's flagship product; however it also sells above 500 other brands in
more than 200 countries and territories, feeding 1.6 billion people every day. On
May 8, 1886, Dr. John Pemberton served the world’s first Coca-Cola at Jacobs'
Pharmacy in Atlanta, Ga. From that one iconic drink, it evolved into a total
beverage company. In 1978, Coca-Cola became the only company which was
allowed to see cold packaged beverages in the People’s Republic of China.
Furthermore, in the year 1982, the company launched it's low-calories sugar-
free soft drink Diet coke (originally named Diet Coca-Cola). Since New coke
was not well received, and then it revived its original flavor in July which was
then marketed as Coca-Cola Classic. Since then, the coca-cola company has
been struggling an insubstantial strategic management team that led a great
problem within the organization. This research report will discuss about the
strategic management as one of the management problem in coca-cola
company.
. https://www.britannica.com/topic/The-Coca-Cola-Company
https://www.coca-colacompany.com/company
2.1 Coca-Cola’s vision Statement
Coca-Cola’s vision statement is to “craft the choice of drinks that people love, to
refresh them in body & spirit. And done in ways that create a more sustainable
business and better shared future that makes a difference in people’s lives,
communities and our planet.
2.2 Coca-cola’s purpose
The key purpose of Coca-cola is to Refresh the world and make the difference.
Meantime, Coca-cola has acted in ways to create a more sustainable and better shared
future so as to make a difference in people’s lives, societies and the whole universe
by doing the business right way.
https://www.coca-colacompany.com/company/purpose-and-vision
3.0 Management problem of Coca-cola Company
As one of the most trusted and valuable brand names worldwide, Coca-Cola has
generally excelled as a business over its long history. However, in recent decades the
company has had difficulty meeting its financial objectives and seen insubstantial
strategic management team which led a great problem within organization.
Strategic management in Coca-Cola Company is a major issue, particularly when it
comes to setting goals, implementing and articulating its vision, understand consumer
preferences, understand short-term and long-term objectives. This turns to be a major
problem because it deals with a large number of companies in different countries.
Therefore, it should be formulated in such a way which would be widely accepted.
Some of the issues that have been rising in the strategic management according to
research are language, advertising, politics and cultural Diversity amongst others.
Strategic management plays significant role in Coca-Cola Company because it
facilitate in foreseeing the future and tracking any changes in customer preferences
and thus helps in formulating proper decision. By dealing with such issues timely, the
company is able to achieve its goal and excel business growth timely.
https://relatewithkatypark.com/14814-a-management-problem-in-coca-
cola-company/
4.0 Research Questions:
1) What is Strategic Management?
2) What are some of the challenges facing the coca-cola company in terms of
global strategic management?
3) What are the management measures that can be implemented so as to
manage the problem, in particular global strategic management issue in
coca-cola?
5.0 Research Data and Methodology
The research will examine secondary data that relates to strategic management
issues in international markets. Thus, the collected information will range from
the available coca-cola reports. This information will be useful in carrying out
an analysis of the economic review and statistical strategic condition of the
coca-cola company
6.0 Overview of Strategic Management
Strategic management refers to the ongoing process of planning, monitoring,
analysis and evaluation of all requirements that is needed by enteerprises to
achieve its goal and objectives. Strategic management has become crucial in
the world of business and the ever uncertain environment and competitive
world. The main importance of strategic business management is to assist
the business’ profit and decision making by the process of planning, forward
thinking, proper resource allocation, analysis environment impact,
understanding strength and weakness of the organization.
https://www.gisma.com/blog/what-is-the-importance-of-strategic-
business-management#:~:text=Strategic%20management%20is%20an
%20essential%20component%20of%20businesses.&text=Strategic
%20management%20therefore%20entails%20evaluating,business
%20runs%20effectively%20and%20efficiently.
6.1 Factors affecting the strategic management issues:
Fig 1:
Language English language is the Use of local language in
secondary language most of the situation
Cultural Diversity Relatively Homogeneous Quite diverse between the
countries and within the
same nation
Politics Instability Unstable and very volatile
in most of the time.
6.2 Global Strategic management issues of coca-cola company
Since 1990s coca-cola has been accused of unethical behavior in various domains
such as racial discrimination, environmental degradation, product safety, and
pollution and health concerns. Some of the issues that led downfall in the market of
coca-cola company are as shown below:
1) Allegation of Racial Discrimination
2) Competitive Issues
3) Lack of market Research
4) Labor Relations
5) PepsiCo-serious Competition
https://harbert.auburn.edu/binaries/documents/center-for-ethical-
organizational-cultures/cases/coca-cola.pdf
7.0Objectives of the study
Lack of proper strategic management is one of the vital business problems
identified by coca-cola company. Coca-cola Company is one of the leading
companies globally. Since coca-cola has lacking strategic management
strategies, it starts decline in terms of business as well as brand credential.
Problem solving and decision-making are important skills can be effective in
finding the root cause of the problems, making the best decisions and solutions
and helping the company to further grow in terms of profitability as well as
brand reputation. This report will based on problem solving theory which will
take SWOT analysis tools, and brainstorming session to achieve a sustainable
competitive advantage over rivals. Therefore, through the problem of study for
coca-cola company, the present paper discusses how to think critically about
business problems, and devise and implement the remedies for overall.
8.0 Overview of the problem solving and Decision making:
Problem solving and Decision making are significant skills for the success of any
business corporation in long run. Basically, problem solving involves decision
making and decision making is particularly important for management and
leadership. There are different methods of improving the quality of decisions. Both of
them are interlinked and each requires creativity in identifying and developing
alternatives, for which brainstorming, SWOT analysis, pest analysis are used.
https://www.businessballs.com/problem-solving-and-decision-making/decision-
making-and-problem-solving/
8.1 Problem solving process:
It is significant for managers and all senior officials to solve the problems effectively.
In a business context, problem solving process starts with identifying problems and
ends with evaluate outcomes thereof. Coca-cola set a framework of problem solving
to its decision making process as following, see table`1. The table 1, Coca-cola uses
a four-step mapping from problem solving to the decision making process. Coca-cola first
identify the management problem, identify alternatives, evaluate them and select the best
solution that deem fit. Let’s take a closer look at each of the steps and how coca-cola can
apply them to the problem.
Figure:
Problem Solving Stage Decision making
1 Identify problem 1 Set the Decision
2 Generate 2 Select alternatives that may
solve the problem
Alternatives
3 Evaluate & Select 3 Decide and commit to act
Alternative
4 Implement and 4 Manage Consequences
follow up solution
https://asq.org/quality-resources/problem-solving#:~:text=Problem%20solving%20is%20the
%20act,solution%3B%20and%20implementing%20a%20solution.
8.1.1: Begin with Identifying the problem and turns it to a challenge
Every business has problems. The problem solving process begins with a problem or
possibly coca-cola has had difficulty meeting its financial objectives should be
considered a problem. In this regard, coca-cola is trying to collect all relevant
information for its product, customers and market. Once the problem is identifies, it
will convert this problem into challenges. The challenges would be as such: How to
improve core brand competences?
8.1.2: Generate Alternatives
The second step is to generate and explore possible alternative solutions to the
problems identified in step 1. Basically, this step involves two parts: generate
alternatives and evaluate alternatives. Short analysis, Brainstorming, discussion
groups and market surveys are some of the approaches used to generating alternatives
by Coca-cola Company
8.1.3: Evaluate and select alternatives:
In this step, all of the possible alternatives are well analyzed; evaluated and then the
appropriate alternative will be chosen. After coca-cola has evaluated each alternative,
one solution should stand out as coming closest to solving the current problems with
the most advantages and fewest disadvantages. Meantime, coca-cola should be very
cautious in terms of selecting the alternative amongst others. It is the most crucial
steps in the problem-solving process.
8.1.4: Implement and follow up solution
Lastly, coca-cola is all set to turn the analyzed, evaluated and selected alternative into
implementations that generate value for the Coca-Cola Company. The company will
execute the plans and implementation of solutions by undergoing planning,
objectivity, identifying needed resources and building and implementing plan.
9.0 Problem solving/Decision making Tools used By Coca-Cola Company:
9.1 SWOT Analysis
SWOT analysis has become one of the most sorted and effective tool for
identifying a company’s strengths, weaknesses, opportunities and threats and
thereof assists forming strategies which could lead to achievement of
organizational goal . Here is the SWOT analysis of Coca Cola.
9.1.1 Strengths in the SWOT of Coca Cola
1) Brand Equity: In 2011, Interbrand has awarded coca cola with the highest
brand equity. Due to its global presence and unique brand identity definitely
stands it out as one of the most reputed and highest brand equity
2) Largest market share: Coca-Cola Company has undoubtedly hold the largest
market share in beverage industry.
9.1.2 Weakness in the SWOT of coca cola
1) High competition with Pepsi: pepsi has become one of the tough
competitors for coca cola.
2) Water management: Coca cola was accused for mixing pesticides to
clear contaminants which has adverse effect to its user’s health. In past
years, coca cola has faced water management issues which turns to be its
one of the weakness
9.1.3 Opportunities in the SWOT of coca cola
1) Diversification: Diversification in the health and food business will
improve brand image, increases market demand of coca cola to their
targeted customers. As a consequence, it will allow to increase revenue
from same customers by cross selling
9.1.4 Threats in the SWOT of Coca cola
Raw material sourcing: since, water is one of the threats to coca cola.
Since, water scarcity is increasing everyday due to the global warming and
climate changing, many of the countries has been facing water scarcity, and
the possibility of questioning to beverage company for massive use of water
is threat to coca cola company.
https://www.marketing91.com/swot-coca-cola/
10.00 Findings of coca cola company
By preparing this report about the decision making and problem solving of coca cola
company. We find out some of the important things which are as listed below:
1) Coca –cola enterprise is the world’s largest marketer, producer and
distributors of coca cola products
2) On may 8, 1886, Dr. John Pemberton served the world’s first coca-cola at
Jacob’s pharmacy in Atlanta, Ga.
3) In 1960, it acquired minute Maid. Which was the very first towards turning to
a total beverage company
4) It has more than 200 brands ranging from coca- cola to smart water to Costa
coffee
5) The company operates in more than 200 countries
6) Decision making and problem solving integrates the knowledge and
experience gained in various functional units
https://www.coca-colacompany.com/company
11.00 Recommendation to improve the performance of Coca Cola:
Some of the recommendations to boost the performance of coca cola company is by
following some of the tips and tricks which are as discussed below:
1) Define the current and future status of company by using external resources and
carry out market research to develop the picture of the company's current state and
future in relation to market trends.
3) Proper Allocation of resources such as assigning the right people to right position
in right time.
The company should focus to bring some more flavors like health drinks and other
low-calorie offerings.
The company should develop a system to receive continuous feedback and
suggestions from its customers as well as from market and try to address it timely
The company should formulate a system to closely reach and check the actions of
distributors so that the reputation and brand image won’t be affected.
4) Proper Environmental scanning
https://www.kimbleapps.com/2016/08/how-to-improve-business-performance/
12.00 Conclusion:
In conclusion, the coca-cola company is the world largest market leader in
beverage industry. Since, it's establishment in 1896, it has become the market
leader due to it's highest brand image. However, in past few years, it has
witnessed downfall in terms of business profitability and brand credibility due
to the increase market competition with Pepsi and some of the allegations as
environmental degradation, mixing pesticides in water to remove
contaminates, racial discrimination and many more. Identification of
management problems and solving it timely are vital part of any business
continuity and development of an organization. Since, it involves identifying
problem, generating alternatives and choosing the best alternatives that deem
fit along with timely evaluation and implementation. Therefore, solving
problems and making decisions in an effective way can be the key to a more
productivity in any organization. Similarly, Coca Cola Company must
formulate strategies to solve the management problem by using the problem
solving method as SWOT Analysis, brainstorming which helps to identify the
strength, weakness, threats and opportunities of Coca Cola Company and take
the necessary measures to fix the weakness and threats and put more effort on
focusing on strength and opportunities it offers. Since, strategic management
has become one of the serious problems of coca cola Company due to the
language barriers, lack of communication, politics, cultural diversity. It can be
resolved by formulating effective strategic framework which can help in
understanding the current and future status of company. This report discussed
about the history of coca cola Company, strategic management as a
management problem of Coca Cola Company and the process of identifying
problem and solving it along with some major interesting findings of Coca
Cola Company. We have recommended some tips to coca cola Company to
boost its business performance for instance: Develop a system to receive
timely feedback from its consumers and the market. Scanning the
environment and operating the business which doesn’t create negative impact
on environment should be taken into proper consideration by Coca Cola
Company to preserve it’s brand credibility in long run.
