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BUS 499 FFFD Business Administration Capstone
Business organizations appear in various sizes and shapes, thereby creating a crucial feature of our daily lives. Peoples experiences and perceptions of business organizations differ depending on whether they are diffused world-wide; however, they interact with them individually and in many ways. The current paper presents the manner, in which organizations are envisioned, undertake business, progress and survive in this era of the 21st century. It is a business report, which is intended to provide an overview of the customer, stakeholder and company model that determines how the corporation could earn the above-average returns. Moreover, it looks at how several factors shape the manner, in which organizations undertake businesses.
Significance of Globalization and Technological Factors
There are various global aspects that shape business activities. With globalization, there are five basic drivers that are based on the change and are leading international companies and forcing them to globalize their businesses. These include:
Political drivers are a progressive decrease of trade barriers, preferential operating agreements, privatization of the most part of industry in typically communist countries and establishment of their economies.
Technological drivers include the worldwide communication networks, network computing and the Internet, as well as improvements in the communication technology.
Market drivers it is where global companies become customers.
Cost drivers it is where globalization of production and commodity lines assist in lowering the costs of attaining economies of scale.
Competitive drivers it is where the companies are safeguarding their home market against foreign competitors by penetrating into the foreign competitors market in an effort to divert them. The reason why international markets are different from domestic markets is that it involves foreign, international, and domestic environments. As in the case of the Coca Cola Company, the forces are similar. However, their values are not similar, and alterations in the values of foreign factors are sometimes hard to assess.
According to the international business model, three environments, where international firms undertake business operations, have the following features. The environment is domestic and consists of all the uncontrollable factors derived in the home nation and having an impact on the development and life of the company. International environment is interaction between foreign factors and environmental forces and, at the same time, interactions between foreign environmental aspects of two nations, when an affiliate in one nation undertakes business with customers in another nation (Steger, 2003). Foreign environment consists of all the uncontrollable aspects that are derived outside the home region and impact the company. The kinds of aspects are similar to those in the domestic environment, but their significance is different, and alterations in the value of foreign aspects are sometimes hard to assess. International environment involves the relationship between foreign and domestic aspects or between several foreign environmental aspects (Steger, 2003).
Companys Model and Its Resource-Based Model
Coca-Cola system is the business system model, which delivers value to both the bottling partners and the company. By working together, the company system aims at developing general profits from the beverage category in an effort to offer strong returns from the involved parties (Cunningham & Harney, 2012). The Coca-Cola system specifies the level, at which a leading global company and a local firm can mutually promote the economic development across the globe. By employing close interaction among various stakeholders, the system establishes high competitive standards all over its branches globally. There is no dispute that Coca-Cola is one of the leading companies worldwide. The impact of this business system is crucial as it is well-known and pervasive.
The Coca-Cola Company utilizes its central competence in an effort to attain a competitive advantage. In an effort to get higher demands compared to its rivals, the Company laid the strategy that makes the product so unique. This advantage enabled the company to grow larger and larger through increased sales. Growing large in the industry is crucial for the company and its consumers, since when a company grows larger and realizes better output, then the economies of scale can be attained. If the cost incurred by the company is low, then prices can be lower, meaning consumers will be attracted, following an increase in demand. Increases in demand lead to the increase in revenues, thereby increasing profits.
Mission and Vision Statement of Coca-Cola
The mission of the Coca-Cola Company is to refresh the world in spirit, mind, and body, to activate instances of optimism through our actions and our brands, and to generate value and bring a change everywhere we engage (Cunningham & Harney, 2012). The Company is similar to any other company that is striving to survive through the economy with unemployment and inflation on the increase. The Company has delighted itself on its secret formula of what distinguishes it from its competitors, as well as its external and internal teamwork, its sturdy leadership within the company, its promotion of global events like the Olympics, and its strength to maintain the quality and safe product. Despite all these challenges, the Company is striving to maintain its stability in the industry environment. The vision of the Company serves as agenda for its roadmap and guides every feature of the business by spelling out what the Company needs to achieve in an effort to continue attaining a sustainable quality growth.
The critical objectives of the Coca-Cola Companys strategy are to add the volume, utilize cash flows, generate economic value added by increasing the economic profits, and widen its share of global non-alcoholic beverage sales. The mission of the Company is to make the best use of share-owner significance over time. In an effort to attain this mission, the Company should generate value for all the citizens it serves, including customers, communities, bottlers, and consumers.
Stakeholders Concept and Influence in Organisations
Stakeholders are those teams, for whom the company voluntarily acknowledged benefits, as well as experienced the obligation of fairness. They typically include groups, such as employees, suppliers, local communities, and financiers. Stakeholder theory is laid on the premise that legitimate or normative stakeholders owe a duty by the company and its managers, while derivative stakeholders maintain the authority over the company and may exercise either a harmful or beneficial influence on it. It means that stakeholders of the Coca-Cola Company influence the ability of the company to generate wealth despite the fact that stakeholders interests are divergent. Most companies have not acknowledged benefits from their activist groups or competitors, despite the fact that theories of strategic management would actually allow these citizens some consideration, since they can influence success of the company significantly (Friedman & Miles, 2006).
Competitors can influence the company and must then be treated as legitimate stakeholders. At the Coca-Cola Company, the stakeholder communication is undoubtedly good for the Company. Managers, who involve stakeholders, are always best placed to achieve the Companys objectives, take advantage of unanticipated, but equally advantageous opportunities like the cost reduction, and avoid a conflict before it reaches a complicated level, like communication with workers, who are not satisfied. The stakeholder communication is, however, more than good for the company as it is a moral duty. Groups and individuals, who add up to the company, should be allowed to have some say in the decision-making and the manner, in which the company is managed (Friedman & Miles, 2006).
Engaging a stakeholder can assist organizations in realizing of concerns and interests of stakeholder groups so that they can decide about balancing the groups interests, in terms of which they have some duty. Taking into consideration the interests and concerns of a stakeholder can improve the relationship, thereby making it possible for the organization to undertake its business smoothly. Consequently, it may lead to the ideas for services or products that will cater for the need of stakeholders and enable the organization to increase wealth and lower costs.
While Coca-Cola delights itself in its achievements, the Company realizes that its operations are far much better. In the environmental features, for example, there are infinite opportunities for a change. The Companys corporate citizenship creates a series of policies, operational activities, and values as these are accorded a full priority within the Company. It is recommended for the Company to promote its policies and programs even greater, since the existing high standards enjoyed by the Company are foundations for expectations of tomorrow. However, the Company knows that it offers a chance to demonstrate in a substantially meaningful and tangible way, that it is special, unique and better.