This website uses cookies to ensure you have the best experience. Learn more

The Coca Cola Company: Market Based Management And Value Driven Management Strategies

1568 words - 6 pages

The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold of the market.
Market Based Management is premised upon a free market system, as described by Jones and George (2014). The principle is based around pleasing the customer by meeting supply with demand. It is imperative to be able to understand the market, and then to react accordingly to the market. These customer-centric values are essential to organizational success in the short-term and long-term (Wenstein, 2012). The values in MBM are integrated into Value Driven Management values because the common denominator between the two is ultimately to add value over time. Any variable that increases customer satisfaction, in turn adds value over time to an organization.
According to Pohlman (1995), the purpose of Value Driven Management is for employees to consider the implications, positive and negative if any, of how certain proposed actions or decisions will affect the respective organization over time. VDM was constructed as a more encompassing approach to building a successful organization. In this context, employees consist of all leadership, management, and staff because they all share those same responsibilities in a broad manner (Pohlman, 1995). Pohlman opines that “Rather than being unidimensional as many other theories have been, Value Driven Management takes into account what drives action of all relevant groups and how this impacts the value of the organization over time” (1995). In essence, there are many moving parts in respect to value creation, however, a firm must identify its competitive advantage, and it must sustain it while continuing to build upon it. In order to maximize long term profit, employees within an organization should keep the aforementioned ideas in mind because there will always be opportunity costs between short-term and long-term gains. The key is to not sacrifice long-term profit for the short-term. All employees within an organization must be cognizant of all factors and variables to successfully implement this strategy.
When broaching the subject of Value Driven Management, it is integral to evaluate short-term and long-term consequences; the key is maximizing value over time (Pohlman, 1995). It is also prudent to recognize one’s own role in an organization, what is valued, be aware of the time horizon, and to avoid gain in the short-term benefit at the expense of long-term benefit (Pohlman, 1995).
The Coca-Cola Company...

Find Another Essay On The Coca-Cola Company: Market Based Management and Value Driven Management Strategies

The Coca Cola Company Essay

2909 words - 12 pages system. This strategy is based on the company's belief that every day, every single one of the 5.6 billion people who populate this planet is going to get thirsty, and the onus is on The Coca-Cola Company to ensure ‘Coca-Cola' is available to satisfy this need. The dedication of the Coca-Cola distribution system around the world is quite remarkable and bears testimony to the company's determination to

The Coca-Cola Company Essay

1176 words - 5 pages Industry General Description The Coca-Cola Company - American multinational corporation operates in a nonalcoholic segment of Beverage Industry. The history of the industry goes back to the 17th century, when the first marketed soft drink came to the Western Market. The Beverage Industry product portfolio consists of soft drinks, carbonated beverages, and alcoholic beverages. Kinds of drinks in a non-alcoholic segment varies a lot and includes

The Coca Cola Company

2601 words - 10 pages assess the conditions that created Coca-Colas marketing problems, evaluate the future of healthy beverages and non-carb drink brand extensions, and provide recommendations to the management. COCA-COLA BACKGROUND The Coca - Cola Company began its legacy in 1886. Dr. John Pemberton, a pharmacist from Atlanta, created the patented Coca - Cola syrup for sale in fountain drinks. In 1899 the bottling business began when two business men from

The Coca-Cola Company - Overview

1030 words - 4 pages number one; may have been a good choice since my husband claims we should own stock with how much I shop there. However, I decided on number 92 on the Fortune 500, the Coca-Cola Company. "The Coca-Cola Company markets four of the world's top-five soft drink brands, including Diet Coke, Fanta and Sprite. " happen to drink a lot of Diet Coke. The company leads the soft drink industry with a 50 percent market share. For the purpose of this assignment

Coca Cola Company

2663 words - 11 pages , investment and so on must be more careful, company should pay attention to different culture and custom background. As Coca-Cola Company, the multinational should make the good relation with the local government.To sum up, as a successful multinational must depend on management, develop new market, and use tools of media, better marketing, and better market strategy and image orientation.

Coca-cola and Indian Market: Would the Indian market would be a lucrative market for Coca-cola?

682 words - 3 pages operations of a branch be brought under one company with 40 per cent foreign equity, and instead of Coca-Cola complying it closed its India operations in 1977.When Coca-Cola re-entered India in 1993, it went though years of being on the defensive battling government, revolving doors in the executive suite misreading consumers and the size of the market. However, in 2002, Coca-Cola started to see the light. It sold 49 percent of its Indian bottler shares

SWOT Analysis: The Coca-Cola Company

1828 words - 8 pages , experienced 16%, 8% and 21% growth in unit case volumes, respectively. In comparison, volumes increased by only 2% in North America, a key developed market for the company.” As Coca-Cola enjoys these recent successes, it also might see continued significant growth in these economies due to their current relatively low consumption of Coca-Cola drinks (Marketline, 2014). Coca-Cola’s ability to fare so well in markets throughout the world can be

Analysis of the Coca Cola Company

4632 words - 19 pages pictures in 1982. In 1985, Coke changed its original recipe for a "New Coke". Market shares had fallen so Guizueta thought that Coca-Cola needed a change his change was "New Coke" the consumers rejected it. The company changed back to the original recipe. In 1986, it consolidated the U.S. bottling operation it owned into Coca-Cola Enterprises and sold 51% of the new company to the public. In 1960, the Coca-Cola Company purchased minute Maid

Pepsi and Coca-Cola´s Difficulty Entering the Indian Market

1184 words - 5 pages For many years, the rest of the world has assumed that India’s governing body is a closed minded regime, avoiding outside investments almost entirely, especially consumer good. This was an obvious obstacle for both Coca-Cola and Pepsi Co. when contemplating entrance into this new market. Although Pepsi had not attempted to enter the market before 1986, Coke had been there many years before, since 1958 but was forced to leave, in 1977, as a

International Business; The Coca-Cola Company

679 words - 3 pages ?" and "We're Coca-Cola - the largest bottled beverage company in America!" What they were not realizing is that they were the smallest beverage company in India, the market that they were so desperately trying to gain dominance in. This is in part to the fact that they were blind to the local culture.After reading the article from Business Week, "Finally, Coke Gets It Right", it was clear to me that the Coca-Cola Company only had two of the four "P's

Financial Analysis of The Coca-Cola Company

2302 words - 9 pages /infographic-coca-cola-at-a-glance Coca-Cola (n.d.). Brands: The Coca-Cola Company: The Coca-Cola Company. Retrieved February 26, 2014, from MoneyChimp (n.d.). CAGR of the Stock Market: Annualized Returns of the S&P 500. Retrieved February 26, 2014, from Morning Star (n.d.). Growth, Profitability, and Financial Ratios for Coca-Cola Co

Similar Essays

Leadership And Management At The Coca Cola Company

1991 words - 8 pages Leadership and Management at the Coca Cola Company Business is an economic institution whose goal is economic Survival and whose activities are dominated by the profit motive. Its primary purpose is to create and satisfy a customer and make a profit. To achieve this purpose, business must be skilfully managed. Management is defined as the art of conducting and supervising a business or as using judgment in business affairs. A

Coca Cola Bottling Company: Planning, Management, Leading And Controlling

1562 words - 6 pages Coca Cola is a worldwide known company that is very successful. The success of this company is due to the structure and management of how this company has been run. " In 1886, John Permberton, an Atlanta pharmacist and civil war veteran with a passion for making home made headache cures, brewed the first batch of Coca-Cola." When Coca-Cola started to become popular a business man named As a Candler bought the beverage from Pemberton and

Human Resource Management Within The Coca Cola Company

3313 words - 13 pages Human Resource Management within Coca Cola Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends. It is essential for every single business unit and especially for such international company as Coca Cola. It is people, not technology who create the company. Human Resource Management at Coca Cola Company has many

Stock Market: Procter And Gamble And The Coca Cola Company

738 words - 3 pages I chose Procter and Gamble and The Coca Cola Company because when I first looked at Google Finance, they were the two options out of the six that were in the green, or in the green the most. When I checked how the two stocks had grown,(I looked at year-to-date), KO and PG were the two that had grown the most out of the options I was given. Also the demand for both companies is high. I read an article that stated the most popular soft drinks