Friday, August 23, 2019

Organizational strategy Case Study Example | Topics and Well Written Essays - 2250 words

Organizational strategy - Case Study Example This paper will discuss how the economic recession has affected the strategic management of the organization, and how it has survived the economic pressures that could otherwise downturn the business (Bateson 2005, p. 98). Coca-cola Company is one of the most successful companies that have laid down some fundamental strategies in order to promote its growth and sustainability. It is the leading manufacturer, marketer and distributor of non-alcoholic beverage in the world. The company believes that consumers are the life of their business. It operates in more than two hundred countries, including Britain with four hundred brands. These brands include water, juice drinks, coffees, teas, sports drinks, energy drinks, diet beverage and many others. They connect to future consumer by providing high quality products. Their employees are skilled and the materials they use are of high quality (www.cocacola.com). Economic recession has had impact on the human resource management strategy of the Company's organization. It has led to higher unemployment, inflation, as well as the cost of living expenses. On the consumer side, economic recession has led to lower disposable income and lower purchasing power. The weakened economy has negatively affected the bottling companies; hence threaten the stability of the company due to the dependent relationship. Moreover, it has led to increased activity at the lower ends of Coca Cola product price in Britain (Bateson 2005, p. 102). The rate of interests has raised the depressing business, hence causing lower spending levels and redundancies. The 2008 economic analysis for Coca Cola Company shows that the economy was strong and nearly every part of it was growing and doing well. The economic crisis which was suggested by several important indicators of economic downturn in Britain include high oil prices, which led to high food prices, as well as using ethanol and biodiesel as an alternative to petroleum (www.cocacola.com). The company has tried to fight the economic pressures; it has significant opportunities that develop and encourage more sustainable practices to benefit their customers, suppliers and consumers throughout the supply chain. The company's system is among the world's leading purchasers of sugar, coffee and citrus; for this reason, its organizational strategy is not affected by the economic recession because agriculture has a large environmental and social footprint in the world (Bateson 2005, p. 112). As the population increases, the sector of agriculture will need to produce more food, both stressing supply, hence increasing the footprint. Agriculture products are ingredients in many of their beverages, thus the sustainability of the company depends on the agriculture supply chain. For this reason, their bottling partners and the procurement teams are working together to incorporate sustainability criteria into the long term purchasing plans. Coca-Cola Company has worked hard to generate high pricing growth and acquire operating expenses and effectiveness in their strategic plans. This has enabled them stabilize their business for proper managing of their targets. The company has continued to plan for useful marketing strategies and approaches that would enable overcome consumer and market trends that impact the business,

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