Question
Operations Strategy Elements of the Organizations Operational Efficacy Coca-Cola Company is one of the most dominant organizations in the non-alcoholic drinks industry. The company has
Operation’s Strategy
Elements of the Organizations Operational Efficacy
Coca-Cola Company is one of the most dominant organizations in the non-alcoholic drinks industry. The company has dominated the industry with effective leadership and robust vision and mission statements for over 127 years (Coca-Cola, 2021). The company's operation strategy is guided by its mission and vision statements; noticeably, the company is classified among organizations with comprehensive global coverage due to its operational strategy. Coca-Cola's mission and vision statements state that the company is committed to "refresh the world in mind, body, and soul, to inspire moments of optimism and happiness through its brands and actions, and to make a difference in people's lives" (Coca-Cola, 2021). As a result, the company is involved in numerous corporate projects directed towards improving people's lives.
In addition, the supply chain and leadership of the company are well established to promote service provision to its consumers. The company has direct and indirect suppliers globally to facilitate the distribution of over two billion units across the chain (The Coca-Cola Company, 2018). Direct suppliers are obliged to control the products and ingredients, while indirect is focused on aspects such as logistics and IT. This strategy in the supply chain enables the company to manage its subsidiaries worldwide and serve its consumers, who are characterized by different needs and preferences.
Moreover, the company has an executive leadership that enables it to manage its numerous stakeholders. Coca-Cola provides job opportunities to over 700000 employees globally (The Coca-Cola Company, 2018). To manage human resources, the company's management adopts a hierarchical structure, and the communication style is top-down. In addition, the company has a board of directors who ensures that the employees are motivated and inspired towards the achievement of set goals and objectives.
Three Tasks That Do Not Align with the Operational Strategy
However, the company's total quality management, just-in-time philosophy, and project management do not align with the operation's strategy. Numerous studies have questioned Coca-Cola's soft drinks; although the company produces diet products, different scholars postulate that the products lack nutritional value. With a surge in a health consciousness trend among different people, the quality of Coca-Cola's products has been questioned. The soft-drinks are thought to have high levels of calories that can threaten consumers' health.
Unfortunately, the company has failed to change its production strategy to meet the just-in-time philosophy of its consumers. Chua et al. (2020) conceded that Coca-Cola's continuous production of carbonated drinks could challenge its success in the current global market. Unfortunately, Coca-Cola has failed to diversify its products; the soft drinks produced by the company are highly carbonated, increasing the risk for consumers. Continuous consumption of Coca-Cola's soft drinks can develop health issues such as obesity and blood pressure (Jones & Comfort, 2018). Noticeably companies such as Pepsi have already diversified their products for their health-conscious consumers by producing water and tea. This increases competition for Coca-Cola and challenges its operation strategy.
In addition, the product management of the company does not align with the operation's strategy. Coca-Cola uses much water in its production process, challenging its ability to add value and refresh the world through its actions. Chua et al. (2020) observe that the company spends over 300 billion liters of water in its production process. Excessive water usage by the company questions its ability to conserve the environment. Using much water in production can drain water sources in different communities where the production is done, reducing the quality of life rather than improving it.
A New Operations Strategy
To improve the quality of the company's products and its flexibility, the organization's leadership should be based on open communication. A change strategy in operation will require much interaction between the leaders and human resources (Altamony et al., 2016). Open communication will facilitate how the company understands the threats in production and implements new strategies to enhance the operation strategy. In addition, more human resources and technological resources will be required in the production process. The company needs to alter its production process in a way that it can produce healthy products and reduce water usage. As a result, more people will be required to ensure that enough information is collected and disseminated. In addition, new technological devices will be required in the production process to ensure that the company produces products that meet its consumers' current needs and preferences.
The Structure of the Competitive Priorities and Infrastructure of the Production Process
The cost of the new operation strategy might be high because new resources will be required as a result affecting the cost of the products. However, by introducing the resources, the company will have the ability to improve its products' quality and flexibility (Machado et al., 2019). Furthermore, it will have the ability to produce products that align with the needs of current consumers. New infrastructure in the production process will require more human resources and extensive research to enhance how the change will be conducted. The company will need more skills and knowledge to ensure that it understands the dynamics of the new production process.
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